India's economic growth is expected to decline to 5.7 per cent this year from 8.2 per cent in 2021, citing higher financing cost and weaker public expenditures, according to the forecast by the United Nations Conference on Trade and Development (UNCTAD) Trade and Development Report 2022. 

 

The country's GDP will further decelerate to 4.7 per cent growth in 2023, the top UN agency projected. India experienced an expansion of 8.2 per cent in 2021, the strongest among G20 countries. As supply chain disruptions eased, rising domestic demand turned the current account surplus into a deficit, and growth decelerated, the report stated..

Source : Business Standard

* The gross GST revenue collected in the month of September 2022 is Rs 1,47,686 crore.

* Central GST : Rs 25,271 crore

* State GST : Rs 31,813 crore

* Integrated GST : Rs 80,464 crore (including Rs 41,215 crore collected on import of goods) and Cess is Rs 10,137 crore (including Rs 856 crore collected on import of goods)

* The GST revenues for September 2022 are 26% higher than revenue in same month last year 2021. 

* GST mop-up has been over ₹ 1.40 lakh crore for seven months in a row..

Source : CNBCTV18

S&P Global Ratings has retained economic growth projection of India at 7.3% in the current fiscal.

S&P has also predicted that inflation is likely to remain above the Reserve Bank of India's upper tolerance threshold of 6% till the end of 2022.

Reason : The external environment has soured for economies in the region and higher global interest rates will exert pressure on central banks.

While, OECD has projected India's GDP growth rate 6.9% for FY23..

Source : The Hindu

The Asian Development Bank (ADB) cut its fiscal year 2022-23 (FY23) gross domestic product growth forecast for India to "7%(7 per cent)" from "7.2%(7.2 per cent)" on Wednesday(21st Sep 2022), citing sluggish global demand and tightening of monetary policy to manage inflationary pressures from elevated prices for oil and other commodities.

 

“While India’s GDP is steadily closing in on its pre-pandemic trend level, economic growth in the near term is likely to be affected by the global slowdown and high inflation,” said ADB Country Director for India "Takeo Konishi".

“We expect that the government’s continued efforts to improve the regulatory climate for businesses and infrastructure will boost investment and create more jobs in the medium term,” he said.

 

The multilateral institution also cut its FY24 forecast to 7.2 per cent from 7.8 per cent.

 

In a statement, the agency said that retail inflation is forecast to remain elevated over the next two years, averaging 6.7 per cent in FY23 before moderating to 5.8 per cent in FY24. “Inflationary pressures will crimp private consumption. However, subsidised fertilisers and gas, free food distribution, and excise duty cuts will help offset some of the impacts of high inflation on consumers.”..

Source : Business Standard

India Ratings became the latest agency to cut its FY23 gross domestic product forecast. On Thursday(15th Sep 2022), the ratings agency cut the forecast to 6.9 per cent from 7 per cent, joining other institutions who have cut their projections to below 7 per cent since the release of the April-June quarter GDP data.

 

“Despite private final consumption expenditure (PFCE) and gross fixed capital formation (GFCF) growth coming in better than our expectations in Q1, the agency expects the slowdown in the growth of government final consumption expenditure (GFCE) and worsening of net exports to weigh on the FY23 GDP growth,” India Ratings said in a statement.

 

 

On Thursday(15th Sep 2022), global rating agency Fitch also lowered India's economic growth forecast for FY23 to 7 per cent from its June 2022 estimate of 7.8 per cent. It now expects the GDP to slow further to 6.7 per cent in FY24 as compared to its earlier forecast of 7.4 per cent.

 

India Ratings projects GDP growth of 7.2 per cent in July-September FY23 quarter, 4 per cent in October-December and 4.1 per cent in February-March..

Source : Business Standard

Wholesale price-based inflation eased to 12.41 per cent in August 2022 as compared to 13.93 per cent in the preceding month(July 2022). According to the Commerce and Industry Ministry data released 14th Sep 2022, WPI inflation fell on easing prices of Manufactured products.

 

The Wholesale inflation was at a record high of 15.88 per cent in May this year and stood at 11.64 per cent in August last year(2021).

 

The WPI inflation continued its declining trend for the third month in August this year but remained in double-digits for the 17th consecutive month beginning April last year.

 

As per the data released on Monday(12th Sep 2022), retail inflation based on Consumer Price Index, CPI, stood at seven per cent in August this year..

Source : News on Air

India’s external debt grew by 8.2 percent to over 620 billion US dollar at the end of March 2022.

 

Finance Ministry's Department of Economic Affairs has released the 28th edition of the Status Report on India’s External Debt 2021-22.  According to it, India’s external debt was over 573 billion dollar at the end of March 2021.

 

Commercial borrowings, Non-resident Indians (NRIs) deposits, short-term trade credit and multilateral loans together accounted for 90 per cent of the total external debt. According to reports, the External debt as a ratio to Gross domestic product (GDP) fell marginally to 19.9 per cent as of March this year, from 21.2 per cent a year ago.

 

Finance Minister Nirmala Sitharaman said, India's external debt continues to be sustainable and prudently managed. She said, the long-term debt constitutes the bulk, while short-term debt is basically incurred to finance imports enhancing the stability aspects of the total external debt..

Source : News on Air

* As per the report of State Bank of India (Economic Research Department), the India is set to become the third largest economy in the world by 2029.

 

* India will surpass Germany in 2027 and most likely Japan by 2029 at the current rate of growth.

 

* The country has undergone a large structural shift since 2014 and is now the 5th largest economy overtaking the United Kingdom.

 

* The report is authored by Soumya Kanti Ghosh, group chief economic adviser, SBI..

Source : News on Air

India's tax collection from the sale of goods and services soared 28 per cent to Rs 1.43 trillion in August 2022 aided by rising demand, higher rates, and greater compliance.

 

The GST collection remained above the Rs 1.4-trillion mark for the sixth straight month in August 2022 and the ensuing festival season will help continue the trend.

 

"Better reporting coupled with economic recovery will have a positive impact on the GST revenues on a consistent basis," the finance ministry said in a statement.

 

The gross GST revenue collected in August 2022 is Rs 1.43 trillion of which CGST is Rs 24,710 crore, SGST is Rs 30,951 crore, IGST is Rs 77,782 crore (including Rs 42,067 crore collected on import of goods) and cess is Rs 10,168 crore (including Rs 1,018 crore collected on import of goods), the ministry said.

 

The revenues for the month of August 2022 are 28 per cent higher than the GST revenues of Rs 1,12,020 crore collected in August 2021..

Source : Business Standard

Telangana Tops Inflation Chart At 8.32%, together with West Bengal (8.06%) and Sikkim (8.01%), report charges nicely above the nation’s 6.8%. 

India’s retail inflation has been a bugbear for the economic system because it surged previous 6% in January, however there are huge disparities within the tempo of worth rise skilled by customers throughout the nation, with a dozen States clocking a median inflation of lower than 6% and one other 12 States averaging over 7% by way of 2022 thus far.  

 

Whereas headline inflation measured by the Client Value Index has averaged 6.8% within the first seven months of 2022, nicely above the 6% higher tolerance threshold set by coverage makers.

 

Retail costs in States like Kerala (4.8%), Tamil Nadu (5.01%), Punjab (5.35%), Delhi (5.56%), and Karnataka (5.84%) have been rising at lower than 6%. Smaller States like Manipur, Goa and Meghalaya have had a median inflation of lower than 4% by way of this era, at 1.07%, 3.66%, and 3.84%, respectively.

As many as 14 States, together with the erstwhile State of Jammu & Kashmir, have witnessed worth rise increased than the nationwide common by way of 2022, with all however two of those States seeing increased than 7% inflation. Shoppers in Telangana, West Bengal and Sikkim confronted the steepest spike in costs, with their mixed retail inflation for rural and concrete areas averaging 8.32%, 8.06%, and 8.01%, respectively.

 

A number of the different main States the place inflation has stayed sharply elevated embody Maharashtra and Haryana (7.7%), Madhya Pradesh (7.52%), Assam (7.37%), Uttar Pradesh (7.27%), Gujarat and J&Ok (7.2%), in addition to Rajasthan (7.1%)..

Source : The Hindu