Category: Economy

On Sunday, Prime Minister Narendra Modi inaugurated and laid the foundations for numerous infrastructure projects, totalling Rs 33,700 crore in Chhattisgarh, to improve connectivity, economic growth, and living standards.

PM Modi laid the foundations for seven railway projects covering 108 kilometres and inaugurated three railway projects totalling 111 km, worth more than Rs 2,690 crore. He launched the MEMU train service from Abhanpur to Raipur and pledged to electrify all railways in Chhattisgarh to reduce congestion and boost economic prospects.

In the energy sector, he launched NTPC’s Sipat Super Thermal Power Project Stage III for Rs 9,790 crore and CSPGCL’s First Super Critical Thermal Power Project worth Rs 15,800 crore and dedicated three Power Transmission projects worth Rs 560 crore to the Western Region Expansion Scheme.

To encourage greener energy, he laid the groundwork for BPCL’s City Gas Distribution project, which includes a 200 km high-pressure pipeline and an 800 km MDPE pipeline costing Rs 1,285 crore. Additionally, he inaugurated HPCL’s Visakh-Raipur Pipeline Project (540 km), which is valued at Rs 2,210 crore.

PM Modi also handed over homes to three lakh underprivileged families through PMAY-G, reaffirming his government’s commitment to housing for all.

The Central Bank of the UAE (CBUAE) has unveiled a new symbol for the UAE Dirham, a crucial step towards increasing the currency’s worldwide recognition. According to the CBUAE, the use of the new symbol is consistent with efforts to establish the Dirham as an international currency.

The new symbol is based on the English term for the Dirham and contains two horizontal lines to reflect the currency’s stability. The design is also influenced by the UAE flag, which emphasises the country’s commitment to financial and monetary security.

In addition to introducing the new symbol, the CBUAE revealed progress in the implementation of the Digital Dirham, a crucial component of the Financial Infrastructure Transformation Program, which was launched in 2023. The Digital Dirham is set to become a widely accepted legal tender across all payment platforms and venues.

The CBUAE-issued Digital Dirham will be available through licensed financial institutions, such as banks, exchange houses, and fintech enterprises. Governor Khaled Mohamed Balama emphasised that this project represents a significant step forward in digital finance by boosting financial inclusivity and security. He stated that blockchain-based Digital Dirham technology will improve financial resiliency while also promoting innovation and cost-effectiveness in international transactions.

On Monday, the Central Bank of the United Arab Emirates (CBUAE) announced that it has launched a new Dh100 polymer currency, a significant step towards the country’s commitment to financial innovation and sustainability. This latest addition to the UAE money series integrates modern security features while honouring the country’s history and prosperity.

The front of the new banknote prominently features the Umm Al Quwain National Fort, a site that highlights the UAE’s vast cultural heritage. The back side of the note depicts the Port of Fujairah and an illustration of Etihad Rail, representing the country’s ongoing infrastructure expansion and economic aspirations. The note keeps the characteristic red colour of its predecessor, making it easy to recognise.

The banknote is made of tough polymer and has a far longer lifespan than paper notes. This lessens the environmental impact while also lowering production and replacement costs. The polymer substance also increases resilience to wear and tear.

To increase security, the note has KINEGRAM COLORS®, a cutting-edge multi-colored security chip that inhibits counterfeiting. It also contains Braille symbols to assist visually impaired people in determining its worth.

The UAE has pledged a major $1.4 trillion investment in the United States over the next decade, greatly increasing bilateral economic ties. The agreement comes after a high-profile meeting between top UAE officials and former US President Donald Trump earlier this week. On Friday, a White House official confirmed the deal, emphasising the focus on artificial intelligence, semiconductors, energy, and manufacturing.

According to the official, the framework aims to increase the UAE’s current investments in crucial sectors of the US economy. Trump and UAE National Security Adviser Sheikh Tahnoon bin Zayed discussed the accord in the Oval Office. Additional discussions took place over dinner, attended by Vice President JD Vance, Cabinet officials, and UAE business leaders, including the heads of significant sovereign wealth institutions and enterprises. As part of the strategy, UAE investment fund ADQ, in collaboration with US-based Energy Capital Partners, has announced a $25 billion investment drive in energy infrastructure and data centres. Meanwhile, XRG, the global investment arm of UAE oil major ADNOC, plans to invest in NextDecade’s LNG export terminal in Texas, boosting US natural gas output and exports.

Australia is solidifying its place as a top destination for mining listings, with the Australian Securities Exchange (ASX) expected to see an increase in secondary listings this year. Mine developers are drawn to Australia because of its large pension riches, stable rules, and protection from US trade disputes, according to industry sources.

The ASX is increasing its market share in metals and mining, competing with Toronto and London as the industry strives for $100 billion in annual expansion to attain net-zero ambitions by 2050. While overall ASX listings have decreased, mining continues to grow.

Last year’s successful listing of Canadian copper miner Capstone sparked new interest, providing an exit for private equity and granting Australian investors access to a major copper mine. Sherif Andrawes of BDO highlighted growing interest from Canadian-listed corporations, describing the ASX as a healthier choice for exploration companies.

A big draw is Australia’s pension wealth, which is the world’s fourth largest, with assets worth A$4.1 trillion ($2.58 trillion). Local pension funds invest approximately 23% of their assets in domestic stocks, which is significantly more than Canada and the United Kingdom.

The Asia Foundation’s Go Digital ASEAN initiative has successfully completed its second phase, equipping 215,892 micro, small, and medium-sized companies (MSMEs) throughout Southeast Asia with critical digital skills. In Thailand, approximately 44,000 individuals and small businesses received free training, with 69% reporting increased revenue.

The ASEAN Coordinating Committee on MSMEs has endorsed the program, which is being executed by The Asia Foundation with support from Google.org, Google’s philanthropic arm. Thailand’s digital economy was valued at USD 21 billion in 2020 and is anticipated to reach USD 53 billion by 2025. With 90% internet penetration, the country’s thriving digital ecosystem drives growth in areas such as e-commerce, entertainment, and food & beverage.

The initiative offers focused digital training to underserved small business owners. “Go Digital ASEAN provides entrepreneurs with the resources they require to compete in today’s economy. “We hope to achieve long-term impact by collaborating with local governments and organisations,” said Hannah Najar, regional program manager.

Participants such as Nookorn Soonthornproh and Pannee Rahan used digital tools to grow their enterprises, increase sales, and create new job prospects.

On Wednesday, Prime Minister Narendra Modi met with Bill Gates, co-founder of Microsoft and philanthropist, to discuss a variety of themes, including technology, innovation, and sustainability. The discussion focused on India’s vision for the future, accomplishments in critical industries, and the country’s commitment to advancing progress.

Following the meeting, Prime Minister Modi took to social media platform X to express his opinions, calling the discussion “excellent.” He emphasised the significance of teamwork in ensuring a better future for upcoming generations. “As always, an excellent meeting with Bill Gates. We spoke about diverse issues, including tech, innovation, and sustainability, towards creating a better future for the coming generations,” he wrote.

The talk focused on India’s development trajectory and goal for Viksit Bharat 2047. Artificial intelligence, healthcare, and agriculture were all extensively discussed, emphasising their importance in creating India’s future.

Bill Gates also gave his thoughts following the meeting. He complimented India’s progress and its worldwide influence. “I had a great discussion with @narendramodi about India’s development, the path to Viksit Bharat @ 2047, and exciting advancements in health, agriculture, AI, and other sectors,” according to his tweet.

London has presented the ‘Growth Plan,’ an ambitious economic effort to raise £27 billion in additional tax revenue and revive productivity growth. The strategy, launched by Mayor Sadiq Khan and London & Partners, names India as the city’s top FDI source.

The strategy anticipates a 2% yearly productivity increase over the next decade, which could boost London’s GDP by £107 billion by 2035. Since 2022-23, India has surpassed US as London’s largest FDI provider, and this trend is expected to continue in 2023-24.

Laura Citron, CEO of London & Partners, emphasised India’s growing influence. “Indian tech firms are setting up in London, and post-Brexit, India has become the second-largest source of international students,” according to her. More than 20% of international students in London institutions were Indian in 2023-24, up from 5% a decade earlier.

Ashish Devalekar of Mphasis emphasised London’s appeal as a worldwide innovation hub. “We plan to double our workforce through our London Innovation Hub,” stated the CEO.

The Growth Plan intends to create 150,000 jobs, improve infrastructure, and raise low-income people’s wages. Sadiq Khan described it as a “golden opportunity” to boost London’s economic potential and promote UK-India connections.

According to Union Minister Dr. Jitendra Singh, India’s space economy is expected to grow by over five times to reach USD 44 billion in future. Speaking at the ‘Space-Tech for Good Governance’ Conclave, organised by the Indian Institute of Democratic Leadership, he emphasised the country’s remarkable progress in space technology.

According to the Ministry of Science and Technology, organisations such as NSIL and In-SPACe have encouraged collaboration between the government and the business sector, propelling India’s space economy to its present USD 8 billion valuation.

Dr. Singh emphasised India’s emerging leadership in space exploration, adding that the country is no longer following global trends but rather creating them. India’s space budget has more than doubled over the previous decade, rising from INR 5,615 crores in 2013-14 to INR 13,416 crores, a staggering 138.93% growth.

ISRO has marked a significant milestone by launching its 100th satellite under the NAVIC program. Additionally, India has launched 433 foreign satellites, 396 of which have been deployed since 2014, bringing in a sizable sum of money.

India aims to include trials for the Gaganyaan trip in 2025, the building of the Bharat Antariksh Station in 2035, and India’s first crewed Moon trip in 2040.

India is strengthening its economic and diplomatic ties with the United Kingdom, with fresh initiatives aimed at expanding their £41 billion trading agreement. External Affairs Minister S. Jaishankar is in the UK to advance negotiations on trade, investment, and strategic relations. His visit is anticipated to speed up ongoing negotiations and create new prospects for collaboration.

As part of this increasing connection, India will establish two new consulates in Belfast and Manchester. This action is intended to boost regional economic involvement, increase investment relations, and provide extra assistance to the Indian diaspora in these regions. The British High Commission highlighted that Indian FDI in the UK increased by 28% by the end of 2023, keeping India as the second-largest investor in FDI projects for the fifth year in a row.

Jaishankar and UK Foreign Secretary David Lammy met at Chevening House to discuss ways to deepen the UK-India Comprehensive Strategic Partnership. They concentrated on trade, climate change, and global security concerns, such as the Russia-Ukraine crisis and Middle East developments.

The UK also applauded India’s move to raise the FDI threshold in the insurance sector from 74% to 100%, allowing British companies to expand in India.