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India set to become 3rd largest economy by 2030 – S&P

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India set to become 3rd largest economy by 2030 - S&P

India will become the world’s third-largest economy by 2030, S&P Global Ratings said on Tuesday. India’s gross domestic product (GDP) is expected to grow 7% in 2026-27. The country at present is the fifth largest economy in the world behind the US, China, Germany, and Japan.

In “Global Credit Outlook 2024,” the S&P said India will be the fastest-emerging market in the world. Yet, its most important test will be if the country can become the next big world manufacturing hub.

S&P said India’s growth is expected to be at 6.4% in 2023-24 compared to 7.2% in the previous financial year. It said the growth rates will remain at 6.4% in 2024-25 before climbing to 6.9% in the next and 7% in 2026-27, the rating agency said.

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India set to become 3rd largest economy by 2030 - S&P

“We see India touching 7% in the 2026-27 fiscal. India is set to become the third largest economy by 2030 and we are expecting it will be the fastest growing major economy in the next three years,” S&P said.

S&P said a booming domestic digital market could also fuel expansion in India’s high-growth startup ecosystem during the next decade, especially in financial and consumer technology.

“A strong logistics framework will be the key to transforming India from a services-dominated economy into a manufacturing-dominant one,” it said. Unlocking the labor market potential will largely depend upon enhancing workers’ skills level and increasing the participation of women in the workforce.

According to S&P, in the automotive sector, India is positioned for development, leveraging infrastructure, investment, and innovation.

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Also Read: Spotify Announces Workforce Reduction Amid Slow Economic Growth

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With unsecured personal loans under lens, growth momentum in the segment to derail in coming quarters

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With unsecured personal loans under lens, growth momentum in the segment to derail in coming quarters

New Delhi, Feb 26 (IANS) ICICI Securities has warned of a potential derailment of growth momentum in unsecured personal loans due to recent regulatory actions. The report highlights concerns over accelerated growth in unsecured loans and the impact on NBFCs.

The regulatory measures by the RBI include an increase in risk weights on unsecured consumer credit and banks’ funding to NBFCs. This is aimed at prompting lenders to reassess their growth strategies in light of the heightened credit growth in unsecured personal loans since the onset of the Covid pandemic.

The surge in credit demand for personal and consumer loans was driven by factors such as disruption in cashflow for small SMEs, temporary unemployment during the Covid phase, and a focus on lifestyle upliftment. Additionally, tech upgrades during Covid simplified credit delivery and expanded the reach for NBFCs.

Many NBFCs have adapted to the demand by revamping their processes and partnering with fintechs to leverage their balance sheet. Consequently, credit growth in personal and consumer loans has exceeded 100 per cent CAGR for most NBFCs, far surpassing the sub-20 per cent blended growth between FY21 and December 2023.

The cumulative AUM of NBFCs analyzed in the report amounts to Rs 10 trillion, with unsecured loans exhibiting even faster growth rates. Some players have reported unsecured loan CAGRs exceeding 100 per cent between FY21 and December 2023. This trend underscores the significant impact of unsecured personal loans on the overall credit landscape for NBFCs.

–IANS

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India seeks greater say for developing countries at WTO meet

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India seeks greater say for developing countries at WTO meet

India advocates for flexibility in existing WTO agreements for developing countries at 13th Ministerial Conference

Abu Dhabi, Feb 26 (IANS) India emphasized at the 13th Ministerial Conference of the WTO in Abu Dhabi that developing countries need flexibility in current agreements to address constraints in industrialization. Commerce Secretary Sunil Barthwal led the Indian delegation, highlighting the need for appropriate policy space to tackle longstanding issues.

India raised concerns about combining development issues with new topics like “Trade and Industrial Policy” and objected to integrating Gender and MSMEs discussions within WTO, stating they are already addressed in other international forums.

In discussions on sustainable development and policy space for industrialization, India stressed the importance of maintaining focus in the multilateral trading system and avoiding mixing non-trade issues with the WTO agenda. The country also promoted a sustainable lifestyle approach, including the LiFE movement for environmental conservation.

Furthermore, India expressed apprehension about the rise of trade protectionist measures under the guise of environmental protection, calling for a balanced approach. The nation urged for a sustainable way of living based on traditions and conservation values to combat climate change effectively.

Journalist: IANS
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SEBI receiving complaints regarding fraudulent trading platforms falsely claiming affiliation with FPIs

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SEBI receiving complaints regarding fraudulent trading platforms falsely claiming affiliation with FPIs

New Delhi, Feb 26 (IANS) Markets regulator SEBI has issued a warning to investors regarding fraudulent schemes claiming affiliation with SEBI-registered Foreign Portfolio Investors (FPIs) and offering stock market access through FPIs or FIIs.

SEBI has been flooded with complaints about trading platforms falsely associating themselves with FPIs and FIIs and luring individuals through online trading courses and mentorship programs. These fraudsters manipulate social media platforms like WhatsApp and Telegram to deceive victims into downloading applications for trading privileges without the need for official accounts.

The regulatory body highlighted that the FPI investment route is not available to resident Indians, with few exceptions as per the SEBI (FPI) Regulations, 2019. SEBI emphasized that there is no provision for an “institutional account” in trading, and investors must have a trading and Demat account with a SEBI-registered broker/trading member and DP for direct access to the equities market.

SEBI clarified that no relaxations have been granted to FPIs regarding securities market investments by Indian investors. The market regulator urges investors to exercise caution and avoid falling prey to fraudulent schemes propagated through social media and online channels claiming unauthorized stock market access through FPIs or FIIs.

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