India's economic outlook resilient for 2025
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India's economic outlook resilient for 2025
India’s economic outlook for 2025 is positive, with strong growth supported by urban consumption, a robust service sector, and infrastructure investments. S&P Global Ratings, Moody’s, and JP Morgan project GDP growth of around 6.6% to 6.8% for FY25. While challenges like inflation and post-pandemic fiscal weaknesses remain, agencies are optimistic about India’s resilience, with opportunities in equities, bonds, and infrastructure. The government is also focused on sustaining growth, particularly in the second half of the fiscal year.
FACT OF THE DAY
A UN-backed report revealed that over 75% of the world’s land has become "permanently drier" over the past three decades. Dry land now covers about 40% of Earth’s land mass, excluding Antarctica. The study by the United Nations Convention to Combat Desertification (UNCCD), released during the COP16 talks on desertification in Saudi Arabia, warns that this trend could impact up to 5 billion people by 2100.
APAC enterprises eye AI benefits in 2 to 5 years
As the Asia-Pacific region continues to embrace the promises of artificial intelligence (AI), a recent study commissioned by IBM reveals that nearly 60% of organisations expect to realise the benefits of their AI investments within the next two to five years. The survey “APAC AI Outlook 2025” offers valuable insights into how businesses are transitioning from experimentation with AI to prioritising return on investment (ROI) in the coming years.
The anticipated timeline for AI benefits indicates cautious optimism among enterprises, with only 11% expecting returns within the next two years. This slower pace underscores the importance of strategic planning in AI deployment, particularly as businesses navigate the complexities of integrating new technologies into their core functions.
Fishery subsidy disparity highlighted by India at WTO
India has called out the vast inequality in global fisheries subsidies, proposing a shift to a per capita-based approach at the WTO. While developed nations provide subsidies worth US$ 76,000 per fisher annually, India offers just US$ 35. With this bold stance, India aims to protect its small-scale fishers and farmers, emphasizing the need for equitable and transparent trade negotiations.
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HIGHLIGHT OF THE DAY
Air passenger numbers are projected to surpass five billion for the first time in 2025, with a 6.7% increase from 2024, according to the International Air Transport Association (IATA). This milestone is accompanied by a forecast of $1.007 trillion in total industry revenues, marking the first time the aviation sector crosses the $1 trillion threshold. The growth in revenues, up 4.4% from 2024, is attributed to falling oil and fuel prices.
Expanding grain storage with world’s largest grain storage plan
Under the pilot phase of the World’s Largest Grain Storage Plan, 11 godowns with a 9,750 MT capacity were built across 11 states, supported by NCDC, NABARD, and NABCONS. PACS in Maharashtra, Rajasthan, and Telangana use three storages, while three others were hired by government agencies.
India’s copper demand grows by 13% y-o-y growth rate
India’s copper demand has surged remarkably by 13% y-o-y growth rate, reflecting the nation’s economic momentum. Driven by robust growth in sectors like building construction, infrastructure, and consumer goods, copper consumption has seen double-digit growth. However, challenges in domestic production and quality concerns highlight the need for a stronger copper ecosystem.
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