Gold Chain

 Eventhough predictions about forthcoming coming Budget of Union Finance Minister are not warranted,  based on existing j macro economic conditions, external environment and opinions expressed by both official experts and outside economists certain points are highlighted . Currently Indian economy is very critical to the world economy not only as a epicenter of economic growth but also as global firms start to look countries across Asia as part of China +1 strategy  and India is emerging as a clear choice. India combines economic might, a large working age population, demographic dynamism, entrepreneurial energy, robust democracy and diversity.     But given the global headwinds and domestic inflationary pressures a modest GDP growth rate of 6-6.5 % is projected for India by experts for the year 2023-24. The budget 2023-24 is to strike a balance between infrastructure investments and welfare schemes while making fiscal consolidation in terms of containing F...

 According to Meier 'economic development is the process whereby the real percapita income of a country increases over a long period of time'.Naturally it implies the determinants of economic growth such as proper utilisation of natural resources, development of infrastructure, changes in technique of production, social attitudes and institutions that result in development.Development process lead to generation of  output, income and employment As population increases and the pace of economic and physical development quickens,there is widespread concerns that scarce  natural resources are used in ways that do not take account of the external costs . Accordingly the idea of "sustainable development - the development that meets the needs of present generation without compromising with the needs of future generations " assumed significance.To tackle global environmental crisis like global warming, climate change and ozone layer depletion UN adopted 17 sustainable develop...

 The term headwind is used to describe conditions that inhibit or impede progress.  It impacts the economies, industries and individual companies.Those factors that lead to decrease in value or growth of the economy or the company are refered as headwinds.They may include factors such as cost of capital, increased competition, decreased money supply etc.While macroeconomic  headwinds are mainly  high interest rates, inflation, fluctuations in exchange rate,poor economic growth etc , whereas microeconomic headwinds that affect individual firm or industry are mainly - decreased revenue, increased input cost, increased competition, decreased demand and operational, legal or management issues. As the global head winds spread across countries and continents,World Bank's latest Global Economic Prospects January 2023 report indicate a sharp long lasting slowdown with global growth declining to 1.7% in 2023 from 3% expected six months ago, virtually affecting all regions res...

  A stable  financial system  is  capable of  efficient  resource  allocation, assessment and management of financial risks and maintaining both economic  growth and employment generation. Financial stability provides  adequate mechanism for pricing, allocating and managing financial risks like  credit, liquidity, counterparty,market risks etc .Financial system is  considered to be stable when there is no major disruption in market transactions without significant  deviation of financial asset prices  from economic fundamentals enabling economic agents to mobilise and operate funds with confidence.In this  context it has been observed that the "Financial Stability Report 2022-23 "released by Reserve Bank of India recently indicated that Scheduled commercial banks (SCBs) asset quality improved in most of the sectors . Despite Indian economy confronting with strong global headwinds,yet sound macro economic fundamentals ...

 It has been observed by demographers that in 2023 India will be replacing China as the largest populated country in the world with demographic dividend of high proportion of working age population if productively and efficiently utilized can create miraculous growth in the economy and vice-versa. Recently India became the world's fifth largest economy after over taking the  United Kingdom (UK). USA, China, Japan and Germany are larger than India  in terms of national income or GDP now. With  a real GDP growth of 6-6.5% in an uncertain world  India is set to be the third largest economy by 2029.While India has 1.41 billion people as against UK only .685 billion and obviously resulting in low percapita income whereas in UK it is higher than that of  India.India's GDP  growth trend showed that it was 8.26% in 2016, 6.80 % in 2017,6.45% in 2018,3.74% in 2019, - 6.60%  negative growth impacted due to  Covid19 in 2020 and 8.95% in 2021.World Bank ...