Category: Economy

A. Sakthivel, Chairman of the Apparel Made-ups and Home Furnishing Sector Skill Council, stated Thursday that India’s total exports, including merchandise and services, are expected to exceed USD 800 billion this fiscal year, owing to government support and competitive offerings from domestic producers. He cited the government’s efforts to reduce compliance costs, promote ease of doing business, and increase industrial competitiveness as key factors to this growth.

Sakthivel voiced optimism about India’s export capacity, highlighting initiatives such as the production-linked incentive (PLI) plan that has boosted manufacturing. “The PLI scheme is proving successful in strengthening domestic manufacturing,” he noted, pointing to the positive reaction Indian exporters are receiving from both emerging and advanced economies, despite global geopolitical challenges.

Commerce and Industry Minister Piyush Goyal has been actively engaging stakeholders to alleviate the effects of crises, especially those in the Red Sea region. India’s exports during the preceding fiscal year totalled USD 778 billion.

Additionally, the Cabinet will boost manufacturing by approving 12 new industrial cities in states such as Bihar, Andhra Pradesh, and Maharashtra.

From April to September, exports increased by 1% to USD 213.22 billion, while imports increased by 6.16% to USD 350.66 billion, resulting in a trade deficit of USD 137.44 billion.

The Union Cabinet has approved an investment of Rs 10,700 crore as operating capital for the Food Corporation of India (FCI) in fiscal year 2024-25. This strategic change intends to improve FCI’s operating skills and help it fulfil its mandate more effectively. During a recent Cabinet briefing, Union Minister of Information and Broadcasting Ashwini Vaishnaw stated that this infusion would significantly improve the FCI’s ability to maintain food security through grain procurement, welfare distribution, and market price stabilisation.

The minister further stated that food subsidies to farmers have increased drastically over the last decade, more than quadrupling from Rs 5,15,000 crore in 2004-2014 to Rs 21,56,000 crore from 2014-2024. This infusion will alleviate FCI’s financial load, cutting its interest rate on short-term borrowings and, ultimately, reducing government subsidies.

In addition to supporting the FCI, the Cabinet approved the PM-Vidyalaxmi plan, which aims to provide financial aid to deserving students seeking further education. Under this program, students enrolled in Quality Higher Education Institutions (QHEIs) will be eligible for collateral-free, guarantor-free loans to cover tuition and other educational expenditures, ensuring that financial limitations do not prevent access to quality education.

As of July 2024, the total capital and reserves of the UAE banking industry have surpassed AED 500 billion for the first time, setting a new record. According to recent data from the Central Bank of the UAE (CBUAE), total capital and reserves increased by 10.5% year over year, from AED454.9 billion in July 2023 to AED502.6 billion in July 2024.

The strength of the UAE’s financial sector is demonstrated by its strong capital growth. The sector saw an increase of AED13.3 billion in the first seven months of 2024, up from AED489.3 billion at the end of 2023. Notably, the CBUAE highlighted that while the data include current-year profits, they do not include subordinated borrowings and deposits.

The capital and reserves are dominated by national banks, which as of July accounted for 86.3% of the total, or AED 433.7 billion. This is a 10.4% yearly rise, underscoring the importance of national banks to the UAE economy. Significant contributions were also made by foreign banks, which held 13.7% of the total, or AED68.9 billion, with a noteworthy 11.1% annual growth.

Tech giants are increasing their investment in Thailand’s data infrastructure, with the Board of Investment (BOI) recently authorising funding for two large data centre projects worth more than THB 60 billion ($1.7 billion). These programs seek to strengthen Thailand’s capacity in data services throughout Southeast Asia.

Quartz Computing, a subsidiary of Alphabet Inc.—the US-based corporation and parent company of Google—plans to invest THB 32.76 billion to build a cutting-edge data centre in Chonburi province. This centre, which will be Google’s fifth in Asia, is part of Google’s aim to improve its regional cloud network and is expected to be completed in early 2027.

Another big investment comes from Digitalland Services, a subsidiary of China-based technology company GDS. GDS, which is well-known for its robust data centre operations in China and Southeast Asia, has committed THB 28 billion to create a hyperscale data centre in Chonburi, which is expected to open in 2026.

The BOI stated that these hyperscale centres, which have superior data processing and cloud service capabilities, will help Thailand become ASEAN’s data centre services hub. As of now, 47 data centre and cloud services projects worth more than THB 173 billion have sought BOI funding, with firms from the United States, China, Singapore, Japan, Australia, and India expressing interest.

Dubai has announced 22 major road projects totalling Dh16 billion as part of the Roads and Transport Authority’s (RTA) Main Roads Development Plan 2024-2027. Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum and other dignitaries reviewed the plan at the RTA’s headquarters, highlighting Dubai’s commitment to improving infrastructure for seamless connectivity and economic growth.

In honour of Dubai Tram’s tenth anniversary, Sheikh Hamdan authorised RTA to investigate a “Trackless Tram” initiative—an environmentally friendly, self-driving electric transportation system aimed at boosting sustainable public transportation in Dubai. Sheikh Hamdan applauded RTA’s breakthroughs in AI-driven solutions, as well as its dedication to developing infrastructure that improves citizens’ lives and encourages growth.

During his visit, Sheikh Hamdan reviewed major upgrades to Dubai’s transit network. Public transport utilisation has increased to 2.2 million per day, with road networks rising by 117% since 2006 to reach 18,990 lane kilometres. Bicycle infrastructure has also expanded to 557 kilometres, increasing active mobility alternatives throughout Dubai.

Traffic indicators reveal that Dubai, with a car population of 3.5 million, maintains efficient travel times. According to the 2023 TomTom Global Traffic Index, Dubai has an impressive 10 km commute time of 12 minutes and 50 seconds within the central area, exceeding numerous other global cities.

According to recent S&P Global Ratings research, South and Southeast Asia will invest more than $20 billion in electric vehicle (EV) development over the next few years, with India expected to benefit significantly. The paper emphasises India’s significant market potential, recognising it as a key driver of EV growth in the area.

Notably, the Tata and JSW groups are slated to spearhead these initiatives, with plans to invest more than $30 billion in EV production and materials over the next decade. Of this sum, around $10 billion will be devoted exclusively to projects in South and Southeast Asia, highlighting the region’s rising role in the global EV industry.

India’s EV adoption is expected to rise as new models are released at lower prices than traditional internal combustion engine automobiles. Furthermore, improvements in EV charging infrastructure are likely to aid in this transition. Hybrid and compressed natural gas vehicles will account for a sizable market share, particularly in the light-vehicle and passenger commercial segments. As per the reports, in India, the transition away from ICE vehicles would begin with alternate fuels rather than full electrification, giving a more diverse approach to cleaner mobility.

According to preliminary figures issued by the General Authority for Statistics on Thursday, Saudi Arabia’s economy expanded by 2.8% year on year in the third quarter, owing mostly to a robust increase in non-oil industries. The non-oil sector expanded by an astonishing 4.2%, while government activity surged by 3.1%. However, the oil sector expanded just by 0.3%.

Saudi Arabia’s GDP dropped in the second quarter, with oil activity falling nearly 9% year on year. On a quarterly basis, real GDP increased by 0.8%, demonstrating a modest rebound despite obstacles from reduced oil prices and production cuts that affect government revenue.

According to a poll prediction, Saudi Arabia’s economic growth will be at 1.3% this year, slightly lower than the International Monetary Fund’s revised prediction of 1.5%. Although oil output is forecast to climb next year, driving a turnaround in total growth, non-oil sectors remain critical to long-term expansion under the country’s Vision 2030 strategy.

Non-oil GDP, which now accounts for more than half of the entire economy, has slowed slightly, expanding at roughly 4% this year—down from the 6% average over the previous three years—but still plays an important role in economic diversity.

Indonesia has opened Southeast Asia’s first electric vehicle (EV) battery plant, with robotic arms building nickel-based cells in West Java. This $1.1 billion factory, funded by Hyundai and LG, is anticipated to help Indonesia achieve its goal of becoming a regional EV production powerhouse.

Former President Joko Widodo stated that such investments might position Indonesia as a vital player in the global EV supply chain by exploiting its world-class nickel reserves. However, analysts point out obstacles such as limited manufacturing capacity, environmental issues, and competition from alternative batteries such as lithium iron phosphate (LFP).

Indonesia trails Thailand, which has approximately 79% of Southeast Asia’s EV market share, by 8%. However, the government is incentivising EV growth with policies like a luxury goods tax exemption and duty-free imports for enterprises that begin production by 2027.

Key automakers such as Hyundai, BYD, and VinFast have entered Indonesia’s 280 million-strong market, selling over 23,000 battery-powered vehicles between January and August 2024.

Industry leaders, including Hyundai’s Fransiscus Soerjopranoto, emphasised their dedication to making Indonesia an EV powerhouse. However, environmental and market challenges persist, particularly as demand for more economical batteries increases.

President Mohamed Muizzu has approved the implementation of India’s Unified Payments Interface (UPI) in the Maldives, a key step towards modernising the country’s financial sector. This step comes after India agreed to share its expertise in digital and financial services, such as UPI and Unique Digital Identity systems, with the goal of enhancing the island nation’s digital infrastructure.

According to an official statement from the Maldivian President’s office, the introduction of UPI is projected to greatly benefit the country’s economy by increasing financial inclusion, improving transaction efficiency, and upgrading digital systems. The decision was reached following extensive Cabinet talks, based on a report submitted by the Minister of Economic Development and Trade.

The Maldives, which has had tense relations with India in recent years, looks to be warming up to increased bilateral collaboration. The Maldivian economy has been severely strained as a result of its reliance on tourism and a steep fall in Indian tourists, who used to account for a sizable proportion of visitors.

For Indian travellers, this development may make financial transactions easier during their stay, making travel more convenient as UPI-based payments become available, thus leading to an increase in Indian tourist numbers to the Maldives.

On Saturday, India’s Finance Minister, Nirmala Sitharaman, met with her Mexican counterpart, Rogelio Ramírez de la O, in Mexico City to strengthen economic cooperation between the two countries. During their discussion, Sitharaman congratulated Ramírez de la O on his reappointment as Secretary of Finance and Public Credit. She also complimented Mexico’s economic stability over the previous six years due to prudent fiscal policies.

The conversations focused on potential collaboration via India’s dynamic startup environment, which Sitharaman believes might provide new solutions for both countries. She also discussed India’s ongoing emphasis on infrastructure development and ease of doing business, highlighting the repeal of about 1,500 old laws and 6,000 compliance regulations to improve company efficiency.

Sitharaman invited Mexico to collaborate on India’s successful digital transformation projects, with a focus on fintech, digital payment, and financial inclusion. Speaking at the India-Mexico Trade and Investment Summit, she emphasised the potential for broad-based collaboration, notably in the pharmaceutical, automotive, and electronics industries.

She emphasised India’s rising digital economy and investment potential in areas such as 5G, AI, and R&D. She also asked Mexican firms to explore collaborations in banking, aircraft and ship leasing, and the establishment of international colleges at GIFT-IFSC.