India is expected to become the third-largest economy in the world with a GDP of $5 trillion in the next three years and touch $7 trillion by 2030 on the back of continued reforms, the Finance Ministry said on January 29.

 

Ten years ago, India was the 10th largest economy in the world, with a GDP of $1.9 trillion at current market prices.

 

Today, it is the 5th largest with a GDP of $3.7 trillion (estimate FY24), despite the pandemic and despite inheriting an economy with macro imbalances and a broken financial sector, said the ministry's January 2024 review of the economy.

 

'This ten-year journey is marked by several reforms, both substantive and incremental, which have significantly contributed to the country's economic progress,' it said.

 

These reforms, it added, have also delivered an economic resilience that the country will need to deal with unanticipated global shocks in the future.

 

The ministry said that in the next three years, India is expected to become the third-largest economy in the world, with a GDP of $5 trillion.

 

'The government has, however, set a higher goal of becoming a 'developed country' by 2047. With the journey of reforms continuing, this goal is achievable,' it said.

 

The Nirmala Sitharaman-headed ministry stressed that the reforms will be more purposeful and fruitful with full participation of state governments.

 

The participation of states will be fuller when reforms encompass changes in governance at the district, block, and village levels, making them citizen-friendly and small business-friendly and in areas such as health, education, land and labour, in which states have a big role to play, it said.

 

'The strength of the domestic demand has driven the economy to a 7% plus growth rate in the last three years...in FY25, real GDP growth will likely be closer to 7%,' said the review report, and added there is, however, considerable scope for the growth rate to rise well above 7% by 2030.

 

The review observed that it is eminently possible for the Indian economy to grow in the coming years at a rate above 7% on the strength of the financial sector and other recent and future structural reforms. Only the elevated risk of geopolitical conflicts is an area of concern.

 

'Furthermore, under a reasonable set of assumptions with respect to the inflation differentials and the exchange rate, India can aspire to become a $7 trillion economy in the next six to seven years (by 2030),' it said.

 

In the preface of the review report, Chief Economic Adviser V Anantha Nageswaran said the Union government has built infrastructure at a historically unprecedented rate, and it has taken the overall public sector capital investment from Rs.5.6 lakh crore in FY15 to Rs.18.6 lakh crore in FY24, as per budget estimates.

 

He noted that the global economy is struggling to maintain its recovery post-Covid because successive shocks have buffeted it. Some of them, such as supply chain disruptions, have returned in 2024.

 

If they persist, they will impact trade flows, transportation costs, economic output and inflation worldwide, he said.

India has sought investment commitments from Switzerland under the proposed free trade agreement with the four-nation EFTA bloc, a top government official said on Tuesday. The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.

 

The official also said negotiations for the pact are at an advanced stage and both sides are trying to conclude it fast.

 

The investment commitment would help India balance Switzerland's decision to remove customs duties on most of its goods.

 

When asked if this move would have an implication on the agreement, the official said that it can be bargained against many other things.

 

'We have told them that we will be requiring commitments on investments so that this zero duty on goods can balance more investments and more manufacturing in the country,' the official told PTI.

 

The Indian negotiators are also trying to see how the Swiss companies can come and manufacture in India so that it gives a boost to Make in India programme and also helps in raising the domestic manufacturing power.

 

When asked about the demand for duty cut in gold by some EFTA members, the official said 'that is part of it, but our major focus is on non-gold issues'.

 

Switzerland is the largest source of gold imports, with about 41 per cent share during April-October this fiscal, followed by the UAE (about 13 per cent) and South Africa (about 10 per cent). The precious metal accounts for over 5 per cent of the country's total imports.

 

Switzerland has large historical accumulations of gold and it primarily refines imported gold.

 

In 2022-23, India's imports from Switzerland stood at USD 15.79 billion, in stark contrast to its exports of USD 1.34 billion, leading to a substantial trade deficit of USD 14.45 billion.

 

India received about USD 10 billion foreign direct investments from Switzerland during April 2000 and September 2023.

 

India and EFTA have been negotiating the pact, officially dubbed as Trade and Economic Partnership Agreement (TEPA), since January 2008 to boost economic ties.

 

Commerce and Industry Minister Piyush Goyal recently held a meeting with Swiss Federal Councillor Guy Parmelin in Mumbai.

 

Parmelin, in a social media post on X, had said that officials are working round the clock to settle last details so that it can be signed as soon as possible.

 

'At the last-minute invitation of my Indian counterpart @PiyushGoyal, I travelled directly from the WEF in Davos to Mumbai/India. After 16 years of negotiations, we found balanced solutions to the main open issues of the EFTA-India trade agreement,' Parmelin had said.

 

The last round of talks between the countries concluded on January 13 here.

 

Negotiations are held on various chapters, including trade in goods, rules of origin, intellectual property rights (IPRs), trade in services, investment promotion and cooperation, trade and sustainable development, and trade facilitation.

 

EFTA has 29 free trade agreements (FTAs) with 40 partner countries, including Canada, Chile, China, Mexico, and Korea.

 

Under free trade pacts, two trading partners significantly reduce or eliminate customs duties on the maximum number of goods traded between them, besides easing norms to promote trade in services and investments.

 

EFTA countries are not part of the European Union (EU). It is an inter-governmental organisation for the promotion and intensification of free trade. It was founded as an alternative for states that did not wish to join the European community.

 

India's exports to EFTA countries during 2022-23 stood at USD 1.92 billion against USD 1.74 billion in 2021-22. Imports aggregated at USD 16.74 billion during the last fiscal compared to USD 25.5 billion in 2021-22.

 

The trade gap is in favour of the EFTA group, according to the data of the commerce ministry.

The Centre is confident of achieving an export target of $2 trillion by 2030, said union commerce secretary, Sunil Barthwal, while speaking at a seminar hosted jointly by Bharat Chamber of Commerce (BCC) and Indian Council of Arbitration on foreign trade policy (FTP).

At present Indi’as exports of goods and services stand at $750 billion. Barthwal said that $1trillion will be forthcoming from merchandise exports and another $1 trillion from services.

 

He said that post pandemic, space in the Special Economic Zone (SEZ) was lying vacant with work from home in vogue, so the Centre was working on reforms in the SEZ policy to carry on the movement of goods between domestic tariff area (DTA) and SEZ space smoothly without affecting the competitiveness of goods in export markets.

He added that reforms in the SEZ are in the offing and there is demarcation of SEZs into SEZ and DTA spaces. 'We need to integrate with the global value chain for our advantage,' he said. Barthwal feels India should concentrate on the production of value-added products like processed food and marine products, instead of exporting them raw.

'The new FTP aims at widening our participation in those value chains and improving our manufacturing competitiveness,' he said.

 

4 SEZs to come up off YXP near Agra

YEIDA plans to establish SEZs near Agra, anticipating economic development from Noida International Airport. SEZs will have green spaces, non-polluting industries, and a focus on tourism. YEIDA also approves aviation hub and semiconductor park, allocates land, and revises dues of developers.

Microsoft hits $3 trillion market value

Microsoft's stock market value crosses $3 trillion milestone for the first time, vying with Apple for the top spot on Wall Street. Microsoft shares hit a record high of $404.72, briefly breaching the $3 trillion market capitalization. As megacap US technology-related companies begin reporting results, Wall Street's run-up to record highs will be put to the test.

India can aspire to be $7 trillion economy by 2030: Review

The Indian economy is projected to achieve a 7% growth rate in fiscal year 2025, marking the fourth year of post-pandemic growth. The economy has been driven by resilient domestic demand, and India can aspire to become a $7 trillion economy by 2030.

Domestic demand resilience will help India carry forward the growth momentum in FY25 as the world prepares for a soft landing, the International Monetary Fund said Tuesday, noting that the Indian economy will grow 6.5% compared with the 6.3% projected earlier.

 

Australia is keen to get easier access to India’s agriculture market under the proposed Comprehensive Economic Cooperation Agreement (CECA) that is being negotiated between Canberra and New Delhi even as first phase of the trade pact, officially known as the Economic Cooperation and Trade Agreement (ECTA), has resulted in Indian goods to be available at much lower cost in that country, according to Philip Green, High Commissioner of Australia to India.

 

Speaking exclusively to ABP LIVE, Green said the ECTA has since coming into force already achieved a 77 percent utilisation rate of free trade access by exporters on both sides. However, he added, it is crucial for Australia to get more market access in India for agricultural goods, including agriculture technology.

 

'The first phase – ECTA – is going very well. The utilisation rate of the free trade access is now at 77 percent. That’s an extremely high level for free trade agreements. Indian products are able to enter Australia more cheaply and therefore more are flowing,' the Australian envoy told ABP LIVE during an interview.

 

 

According to Green, export of apparel and clothing from India has seen a 10 percent increase since the ECTA came into force in December 2022. He also highlighted that exports of Indian agricultural goods witnessed a 16 percent rise due to the trade deal.

 

'We are very keen to conclude the second phase, which is called CECA… (In CECA) Agricultural access is important to us. We are a big agricultural exporting country and we think that Indian consumers can benefit from more Australian agricultural goods at lower costs,' he said.

 

India and Australia have been negotiating the CECA since May 2011. However, after several rounds of negotiations, talks were suspended in 2016. It was thereafter revised in September 2021, and eventually the ECTA was signed.

 

One of the main reasons why concluding the CECA has missed many deadlines is due to Australia’s insistence on having reduced or tariff-free access to India’s agriculture market. The CECA is currently under negotiations and may not be concluded before the later part of this year until a new government comes to power in India after the parliamentary elections that are expected to be held in April-May 2024.  

 

Last December, an Australian parliamentary delegation visited India to discuss Australia’s entry into the Indian farming segment, which remains a contentious topic between both sides.

 

'We understand that this (agriculture) is sensitive for India. We have no desire to upset the lifestyles of important numbers of Indian people. To the contrary, we actually think that this deal (CECA) can be built in such a way that it supports the agricultural sector in India. We have a lot of agri-tech and we are prepared to share that. We would like to find ways of making sure that this is a win-win for Australia and India in agriculture,' said Green.

 

India Needs To Be ‘Quick & Assertive’ In Importing Critical Mineral, Rare Earth  

In October 2023, the Anthony Albanese government unveiled a plan to make it easy for countries to invest in mining and processing critical minerals and rare earth by announcing a $1.25 billion fund. With China dominating the market and the demand for critical minerals like lithium and cobalt increasing, Australia has said it wants India to be a steady player in that supply chain.

 

'Concluding the CECA would mean better utilisation of Australian critical minerals in India’s renewable energy trade especially in electric vehicles and batteries … India wants to do more in the renewable sector and we want India to be successful in that and we have a lot of the resources that are required for that. We want to make sure that Indian firms and governments are part of that supply chain,' said Green.

 

Australia is the largest exporter of lithium and second-largest producer of cobalt in the world. 

 

'We are going to be real about this. The demand for our critical minerals is high. Purchases in North America, purchases in North Asia, purchases in Europe, they are on the ground, as are some Indians. So my message to the Indian industry is that we are here to help, we want you to succeed, but you got to be quick and you are going to be assertive in a way you are going to go about it,' he stressed.

 

Green, who assumed charge as Australia’s envoy for India in August, also said: 'I do not think India is lagging behind. This phase is natural. We know about the mining game, it won’t be quick, developing mines takes time, takes high level of trust and of course, takes resources. I am confident that we will get there but my message is we all have to work harder and faster at this moment so when we come to the end of the next term of an Indian government we can say yes we got that done.'

 

India ‘An indispensable Partner’ In Indo-Pacific

With tensions now rising in the Red Sea region due to relentless attacks by Houthis on merchant vessels that have invited military operations in Yemen by the US and the UK, Australia said its ties with India are now more critical than ever under the Indo-Pacific strategic framework.

 

'We (Australia and India) live in a more complex, contested and dangerous world and we both need greater partnerships and deeper friendships with those whom we trust and with those with whom we have similar outlooks. For Australia, India is on a very short list of those countries that we want to deepen and we feel it’s important as we face more tension in our region,' said Green.

 

He added that 'both our governments are making very powerful efforts to manage those tensions', and aiming to see that the conflict in the Red Sea region 'do not widen in a way that it becomes dangerous for all of us'.

 

Earlier this month, External Affairs Minister S Jaishankar visited Iran where he raised the issue of 'threats of maritime shipping' with Tehran. Meanwhile, Australian Foreign Minister Penny Wong visited Jordan, Israel, the Occupied Palestinian Territories, and the United Arab Emirates, to mitigate the growing tensions arising in the Middle East that is threatening growth in global commerce.

 

Since December, Houthi rebels have been attacking merchant ships passing through the Red Sea in retaliation to Israel’s deadly airstrikes on Gaza that has given rise to a humongous humanitarian crisis.

 

'The situation in Gaza is dire. Although Hamas attacks are to be completely decried, the ending of Hamas must be sought and we support Israel in that, the humanitarian interest of the people of Gaza must be held in that balance, that’s terrifically important… We are also focussed on the original cause of this, which we would like to bring to a sustainable ceasefire … And a ceasefire that is not unilateral,' said Green.

 

Australia is also part of the Quad, which includes India, Japan, and the US. According to the envoy, the Quad will remain focussed on the Indo-Pacific while he ruled out any expansion plans of the grouping.

 

'We are dealing with a world with global challenges in multiple locations. For our country, still, the top priority is the stability and peace in the Indo-Pacific and against that ambition India is an indispensable partner,' said the Australian envoy.

The Central Warehousing Corporation (CWC) has made plans for creation of cold storages, food processing plants, dry warehousing on vacant land and godown compartments across the country on public-private partnership (PPP) mode.

 

According to a report, CWC has identified various locations as potential sites to set up these projects as these locations already have CWC facilities which can be converted, partially or fully, into cold storages for the perishable commodities.

 

The aim was to reduce the time period of commissioning of a project, which was a tedious process.

 

The report further reveals that the private entity will be asked to design, renovate, finance, construct (new or retrofitting), operate and maintain cold storage, processing plants and so on.

 

And, the facility will be transferred by CWC after the concession period.

 

Chief Minister Yogi Adityanath on Wednesday emphasised the transformative role played by the One District One Product scheme in the context of Uttar Pradesh, saying the state's exports under this scheme have touched Rs 2 lakh crore.

Adityanath was speaking at an event at the Awadh Shilpgram here after inaugurating a programme to celebrate 'Uttar Pradesh Diwas'.

 

During his address to the attendees of the event, the chief minister highlighted the significance of the Uttar Pradesh Foundation Day as a potent platform for realising Prime Minister Narendra Modi's vision.

Speaking about the impact of the One District One Product (ODOP) scheme, launched in 2018, on the state's growth, Adityanath said Uttar Pradesh has so far exported ODOPs worth Rs 2 lakh crore.

 

He also launched the 'ODOP Mart Portal' for e-marketing of ODOP products.

He mentioned that 96 lakh MSME units are operational in the Uttar Pradesh, providing employment to 40 lakh people returned to their native places in the state during the COVID period, according to an official statement.

The government is extending a security insurance cover of Rs 5 lakh to MSME units in the state in case of accidents or disasters, he added.

Adityanath pointed out that the world recognised the potential of Uttar Pradesh through the International Trade Show organised in Noida last year, which attracted more than 500 foreign buyers.

 

The chief minister said on the third foundation day of the state under his tenure, the government implemented a new apprenticeship scheme, resulting in the participation of lakhs of youth.

Reflecting on the state's economic condition before 2017, Adityanath remarked, 'After 2017, when the double engine government started functioning, a better security environment was created in the state.' 'Today, the results are evident. The youth, entrepreneurs, and businessmen of Uttar Pradesh no longer need to conceal their identity within the country,' the statement quoted him as saying.

He emphasised that Uttar Pradesh has fortified its economic position over the last seven years, witnessing improvements in infrastructure and connectivity.

 

On this occasion, Adityanath honoured Lucknow-based scientist Ritu Karidhal Srivastava and Naveen Tiwari of Kanpur with the prestigious Uttar Pradesh Gaurav Samman award.

Dr Srivastava played an important role in the development of India's Mars Orbiter Mission and Chandrayaan. She was also the Deputy Operations Director for this mission and has been working for ISRO since 1997, the release said.

Tiwari was presented the award for establishing the largest independent mobile ad-tech platform in the world, connecting local businesses in Uttar Pradesh and India with national and international audiences. The software developed by his enterprise is actively featured on over 400 million smartphones worldwide, it added.

 

On the sidelines of the event, cultural performances from diverse states were held.

The stage came alive with vibrant folk dances performed by artists from Gujarat, Jammu and Kashmir, Madhya Pradesh, Haryana, Sikkim, and Goa. Artistes from Bundelkhand, Awadh, Purvanchal, and the Braj region showcased their talents by presenting folk songs dedicated to Lord Ram.

The programme also featured soulful renditions of devotional music as part of Shri Ramotsav-2024, adding a spiritual dimension to the cultural celebration.

President Droupadi Murmu, Prime Minister Narendra Modi, and BJP President JP Nadda extended wishes on 'Uttar Pradesh Diwas' through microblogging platform X.

President Murmu wrote on Twitter, My heartfelt greetings to all the residents of the state on Uttar Pradesh Diwas. This most populous state in the country is playing a leading role in the social, cultural and economic progress of India.' 'I wish happiness and prosperity to the skilled, hardworking and loyal people of Uttar Pradesh. I am confident that this state and its residents will always remain on the path of development, she added.

 

'Many best wishes to all the family members of Uttar Pradesh, the holy land of spirituality, knowledge and education, on the foundation day of the state. In the last seven years, the state has written a new story of progress, in which the public has actively participated along with the state government,' the prime minister said on X.

'I am confident that Uttar Pradesh will play a leading role in the resolution journey of developed India,' he added.

In Siddharthnagar Mahotsav, a seminar and workshop was organized on the production and marketing of black salt rice selected under One District-One Product. Speakers in the seminar stressed on increasing the production of black salt, improving its quality and encouraging exports.

Speakers said that the farmers here will benefit by promoting its exports. In the seminar organized on Monday, the second day of Siddharthnagar Mahotsav at BSA grounds, senior scientist RC Chaudhary said that the production and marketing may be affected due to the stoppage of export of black salt. Positive efforts will have to be made to open exports. CFC of Kala Namak Rice, Abhishek Singh said that the code for rice called Kala should also be issued. Vikas Upadhyay said that there should be marking on the packing according to the languages ??of different countries of the world.

 

Expert Shridhar Pandey said that to maintain the identity of black salt rice, there is a need to pay attention to its quality. If the quality deteriorates, the brand name will also be tarnished. Anshuman Upadhyay also gave important information. In the workshop and seminar, the efforts made in the production, quality and marketing of black salt rice in the last decade as well as discussions were held for betterment in the future.

On this occasion, Deputy Commissioner Industries Dayashankar Saroj gave detailed information on the production and export of black salt rice at present compared to earlier.

 

Farmers did not participate, chairs remained vacant.

During the Black Salt Seminar at Siddharthnagar Mahotsav, chairs were seen vacant in the pandal due to farmers not coming. Local people said that farmers could not participate in the seminar due to the organizing committee not inviting them. Due to this, questions are being raised on organizing this program to make farmers aware. At the same time, no movement of people was seen in the Kala Namak zone at the festival site till 12.38 pm.

Prime Minister Sheikh Hasina on Monday directed the authority concerned to reduce import duty on four essential items – rice, edible oil, sugar and date– ahead of the upcoming Ramadan.

 

The directive came from the Cabinet meeting chaired by Prime Minister Sheikh Hasina at her office in the city.

 

'The prime minister has given a clear directive to decrease the duty on four items – edible oil, sugar, rice and date — on the occasion of the upcoming Ramadan,' said Cabinet Secretary Md Mahbub Hossain while briefing reporters at the Secretariat.

 

The National Board of Revenue (NBR) would assess how much the duty can be curtailed, he said.

 

The prime minister also asked all the authorities concerned to work in a coordinated way and monitor the market so that there would be no deficit in the supply of the goods against the demand in the market, he added.

 

In reply to a question, the Cabinet secretary said the importers now do not face problems opening LCs to import any essential goods.

In the tranquil town of Kendrapara, Odisha, Ranjan Kumar nurtured a dream to start his Bakery Industry. This venture would fulfill his entrepreneurial aspirations and contribute to the thriving food industry. Little did he know that the journey ahead would be a rollercoaster of challenges and triumphs!

 

In July 2022, Ranjan took the plunge and founded Kaalki Corporation, an enterprise focused on producing bakery products. Armed with determination, he infused his 24 years of experience in the food and chemical sector to establish a unit that would bear his mark.

 

But his entrepreneurial journey wasn't so easy. For Rajan, the initial hurdle was securing the necessary capital investment. His vision needed financial backing. At that point, the PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme emerged as a beacon of hope for Rajan. The scheme aims to formalize and support micro-food processing enterprises by providing them with training, capacity-building support, seed capital, and credit linkages. The Director of Industries, Odisha, Cuttack, is the State Nodal Agency for implementing the Scheme in Odisha.

 

He learned about the PMFME Scheme through GM, DIC Kendrapara, serving as the District Nodal Officer for the scheme. But applying for the scheme was a whirlwind process. Rajan received the support of Palladium India, the State Project Management Unit supporting SNA for implementing the PMFME scheme in Odisha, to secure a loan and get a subsidy.

 

Rajan secured a bank loan from UCO Bank amounting to Rs. 66,50,000 and also got the benefit of a subsidy amounting to Rs. 10 lakhs. This financial boost enabled him to acquire the necessary machinery to scale his business. Kaalki Corporation's products found their way strategically into local stores, retail outlets, and wholesale channels in Kendrapara and Jagatsinghpur districts in Odisha. Today, the corporation is operating at a per-day production capacity of 1500 kg, helping Rajan generate a daily profit of Rs. 2000. Under the PMFME scheme, Rajan will be undergoing the Entrepreneurship Development Programme (EDP) training on essential aspects of starting and running a food processing business.

 

Rajan aims to expand his market reach by leveraging the power of social media platforms, websites, and e-commerce channels. He dreams of tapping into international markets by introducing an additional processing line to export cookies.

 

Vikash Pandey, associate director of Palladium, who leads the project, says, 'Palladium India is supporting many such Food Processing Units in facilitating various aspects of the PMFME scheme’s implementation. Palladium aids in preparing roadmaps and project implementation plans for the scheme's effective execution. We facilitate credit-linked support to individual and group enterprises, capacity-building activities, and assist micro-enterprises in integrating into the organized supply chain and expanding their market reach. Kaalki Corporation is one such microenterprise supported by Palladium with bank linkage, acquiring a subsidy, and constant support at every operation step.'

 

'This is just one story within the sea of success stories where the PMFME scheme transforms people's lives. The scheme is fulfilling dreams and contributing to rural development by creating employment opportunities, reducing migration, and promoting economic activities in these regions,' Pandey adds.

 

'Rajan’s success is a testament to our dedication to empowering small-scale enterprises. Palladium as SPMU provides implementation support to the Directorate of Industries, Odisha, including market access and training support for beneficiaries. We have provided credit-linked support to over 1000 micro-food processing units and trained over 7500 entrepreneurs. Around 19,000 SHG beneficiaries were able to receive seed capital support amounting to ~ INR 57 Cr.,' says Amit Patjoshi, CEO of Palladium India. 'These are not just numbers for us; each is a step towards mobilizing a huge wave of change in the food processing sector!'

 

Ganesh Chandra Behera, general manager of DIC Kendrapara, shares, 'The PMFME scheme is an exceptional initiative to boost the food processing industry in our country. It promotes formalization, enhances competitiveness, and supports upgrading technology and building capacity. We have witnessed a huge impact of the scheme in our area, and it can potentially transform lives nationally.'