From Saving to Investing: India's Youth Leads the Way!

Good Afternoon ☕

India is blowing out 76 candles on its freedom cake. This Independence day, India will mark its 76th year of independence. Over these seven decades, the nation has achieved remarkable milestones where we have ensured food security, fostering the growth of major corporate giants, establishing a robust banking and financial system, and maintaining a commendable external sector balance sheet.

From Independence to Progress

As any seasoned developmental economist would emphasize, all these accomplishments lose their significance if there isn't a concurrent and equitable improvement in the per capita income of the population. The figures for the year 2022-23 reveal a noteworthy 6.13 percent year-on-year increase, with per capita income reaching Rs 1,15,746. This growth is particularly impressive when compared to the meagre Rs 250 figure back in 1947. Evidently, the average income of an Indian has witnessed remarkable expansion over time.

Navigating the Path to Prosperity

But, for the income of each person to grow steadily, the country's overall economy (GDP) needs to get bigger and create steady jobs and earnings. Even though India has made progress since becoming independent, it still faces challenges in making its economy grow a lot. Just before the pandemic, some folks criticized India for not growing its economy fast enough – they called it the "Hindu rate of growth," which means slow growth. Now, India wants its economy to grow at least 8 percent to create enough jobs. Experts think the economy might grow around 6.5 percent this year, according to the Reserve Bank of India, and maybe between 6.5 to 7 percent, say other experts. Hitting above 8 percent has been pretty rare in the past.

But hey, don't be sad! We've got what it takes to reach that 8 percent growth, and leaders just need to use the right strategies. Neelkanth Mishra, a smart person who studies the economy, says we should encourage more women to work to make things better, get money from other countries to help our economy grow, and make sure our way of working stays effective. He thinks the current plan for growing is better than before, and this good momentum should continue for the next five years.

Financial Resilience and Concerns

Mishra thinks more and more people in India will start saving their money in banks and investments rather than keeping cash at home. This is clear from the big increase in money going into mutual funds, where people pool their money to invest. Young people in India are excited about saving and growing their money for the future. But regular folks in India don't seem as happy as Mishra about money matters. A special chart from the RBI, like a money weather report, shows that people are feeling less positive about how things are going right now, but they're still somewhat hopeful about what's coming next. When the COVID situation got better, people were feeling better too, but now it's like the mood has hit a wall.

Balancing Challenges with Optimism

The main reason for this change is inflation – that's when prices for things go up. It's like when your favorite snack suddenly costs more. This year, inflation has come back, mostly because food prices are climbing. People expect prices to keep going up, and this is making them worried about their money. Mishra says if the inflation is coming from other countries, it can hurt how much people spend. But if it's happening within India, it's not as bad. In the past, India has struggled when prices went up because of things coming from other places, like when prices of things we buy from outside went crazy. The good news is that a lot of this inflation is because of temporary problems, like supply issues, and the RBI believes it won't last long.

As prices go up and people become unsure about their income and jobs, many Indians are feeling uneasy. But even with these problems, the average Indian is still hopeful. The RBI's studies show that people's expectations for the next year haven't gotten a lot worse. Businesses believe they will make more money and the people who make the rules are being careful in how they guide things. Surprisingly, the stock market is doing well this year, which means people are still feeling positive about their money. Even

Important News of the Day

1. SBI tops Reliance to become India's most profitable company

State Bank of India (SBI) has surpassed Reliance Industries to become the most profitable company in Q2. SBI reported a quarterly net profit of Rs 18,537 crore, beating Reliance Industries' net profit of Rs 13,656 crore during the same quarter.

2. India clinical trial to evaluate efficacy of glutathione therapy for early Alzheimer's Disease

A clinical trial in India will evaluate the efficacy of glutathione therapy in treating early Alzheimer's disease. Glutathione is a protective substance made in the body, and low levels of it have been linked to Alzheimer's disease.

3. Govt to streamline criminal probe with changes in CrPC

The Supreme Court of India has ruled that high courts can order further investigation or re-investigation in a criminal case to secure the ends of justice, even after the chargesheet has been filed. The court stated that such powers are to be exercised sparingly, with circumspection, and in exceptional cases.

4. Haryana lifts ban on internet services in violence-hit Nuh district: Report

Internet services have been restored in Nuh district, Haryana, after a two-week suspension following communal clashes that resulted in six deaths. The Haryana government had initially announced a temporary suspension of mobile internet services until August 11, but later extended the ban until August 8.

5. Centre's direct tax collection continues to rise to stand at ₹6.53 lakh crore till August 10

India's gross direct tax collection has grown by 15.73% to Rs 6.53 lakh crore till August 10 in the current fiscal year, according to the Income Tax department. The net direct tax collection after adjusting refunds stands at Rs 5.84 lakh crore, which is 17.33% higher than the net collections for the corresponding period of last year.

6. IPC to Bharatiya Nyaya Sanhita 2023: 'Subversive activities’ replaces ‘sedition’

The Union Home Minister Amit Shah introduced three bills in the Lok Sabha to replace British-era laws and overhaul the criminal justice system in India. One of the bills aims to repeal the offence of sedition completely, which has been criticized for being a colonial legacy.

7. India's gross direct tax collection this FY24 till August 10 up 15.7%

India's gross direct tax collection for the financial year 2023-24, until August 10, has increased by 15.7% compared to the previous year. The Indian government has collected 6.53 trillion rupees ($78.88 billion) as gross direct tax during this period. This growth in tax collection indicates a positive trend in the country's economy.

8. Isro’s Aditya-L1, India’s first Solar mission, reaches spaceport

India's first solar mission, Aditya-L1, has arrived at the spaceport in Sriharikota in preparation for its upcoming launch. The satellite, developed at the U R Rao Satellite Centre in Bengaluru, will be able to orbit the Sun without the planet eclipsing its view and carrying seven payloads to observe it. Aditya-L1 will explore the Sun's dynamics and origins, and it is the first space-based Indian observatory to study the Sun.

World News 🌎

• Musk, Zuckerberg's fight will be held in Italy; to be livestreamed on X, Meta

• Niger Crisis: India asks citizens to leave African country 'as soon as possible'

• Joe Biden urges Congress for $40 billion to back Ukraine, restoring disaster aid

• Hawaii's Maui wildfires death toll reaches 53

• Russia's Luna 25 Moon mission marks resurgence after nearly 50 years.

• China is a ‘ticking time bomb’: US President Joe Biden says

• UPS drivers will make over ₹1.4 cr every year. Netizens say ‘quitting my job’

• U.S. Prosecutors push for Trump's trial by January 2024 over election conspiracy

• Jeff Bezos buys $68 million mansion on Florida’s exclusive Indian Creek Island

• Russia launches first Moon mission in 47 years

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