Former Commerce Secretary Rajeev Kher in an interview with ET said FTA negotiations prioritize preferential agreements over multilateralism due to the lack of commonality in issues among countries and the evolving role of non-trade issues. Kher added that friendshoring has emerged as a response to supply chain uncertainties caused by geopolitical tensions.
The government is expected to stick to fiscal prudence in the interim budget, with a 5-10% increase in budget line item allocations. Confidence should be provided that fiscal deficit targets will be met, with reductions in food and fertilizer subsidies. Positive signaling on fiscal spend, including increased allocation for capex, is anticipated. Divestment targets are likely to be modest in the interim budget but significantly enhanced in the full budget. India s macroeconomic situation for FY 2024-25 is projected to have a GDP growth rate of 6.3-6.5%, with risks stemming from geopolitical factors.
Interim Budget 2024: Arvind Virmani, economist and NITI Aayog member, has said that the pressure on the Modi government to undertake populist measures has reduced after BJP s state election victory. The interim budget might have political messaging. Virmani had forecasted a 6.5% GDP growth rate for the current fiscal year, which is now at 7%, exceeding his expectations
Farmers in parts of the country have had to face an erratic southwest monsoon—excess rain in July followed by a record-dry August. ET travels to three states to gauge the impact on the fields.
As over 40 world leaders are expected to huddle over that weekend at Bharat Mandapam, a newly revamped convention centre in the capital s Pragati Maidan, India, as its president, may have to tread a tightrope between warring factions, building a consensus in hashing out a declaration acceptable to its members.