India to remain world’s fastest-growing economy: IMF
A drone view of the construction work of the upcoming coastal road in Mumbai, India. (Photo credit: Reuters)
By EasternEyeOct 23, 2024
INDIA is projected to remain the fastest-growing economy in the world, according to a senior official from the International Monetary Fund (IMF), who noted the country's strong macroeconomic fundamentals.
"India is expected to remain the largest growing economy in the world. We project growth at seven per cent in FY24-25, supported by a recovery in rural consumption, helped by favourable harvests. Inflation is forecast to decline to 4.4 per cent in FY24-25, despite some volatility as food prices normalise," said Krishna Srinivasan, director for the IMF Asia Pacific Department, in an interview with PTI on Tuesday.
He further noted that "despite elections, fiscal consolidation remains on track," and added that the country’s reserves are in a strong position. "Overall, India's macroeconomic fundamentals are good," he said.
Srinivasan highlighted three areas of reform that should be prioritised after the elections. "First, creating jobs is a key issue. In this context, implementing the labour codes approved in 2019-2020 is important as they will help make the labour market more flexible while providing social protection to workers."
He also pointed to the need for India to remove certain trade restrictions. "When trade is liberalised, it allows productive firms to survive, increases competitiveness, and can create jobs. It's important to reduce some of the existing trade restrictions," he explained.
Lastly, he emphasised the importance of continued investment in infrastructure, both physical and digital. "This has been a key achievement, but moving beyond that, reforms should also focus on agriculture, land reforms, and improving education and skilling."
Srinivasan further stressed the importance of investing in the workforce. "In an economy that can create more jobs in the services sector, having the right kind of skills is crucial. So, investing in education and skilling the labour force is very important," he said.
He also pointed out the need to strengthen social safety nets and improve the business environment, noting that red tape remains an issue. "Talking to people, you still hear about a lot of red tape. Improving the business environment is a key area of reform."
Giving examples of challenges, he mentioned difficulties investors face in entering the Indian market, securing land for large investments, and exiting investments. He also highlighted issues related to the labour market, noting that the existing labour codes still act as a deterrent.
Srinivasan acknowledged a decline in the unemployment rate to 4.9 per cent and an increase in labour force participation. "For instance, labour market participation has risen to 56.4 per cent, and the employment-to-population ratio is about 53.7 per cent, up from previous figures," he said, adding that much of the improvement is seen among self-employed workers.
However, he expressed concern about the shift of workers toward the low-productivity agriculture sector, pointing out that "the jobs being created are not the best."
Srinivasan also highlighted low female participation in the workforce and high youth unemployment. "Labour force participation of women is on the lower side, and youth unemployment remains quite high. There's a need to focus on improving the environment to generate jobs," he said.
Elon Musk’s aerospace company SpaceX has suffered its third consecutive rocket launch failure after its Starship spacecraft lost control shortly after lift-off and crashed into the Indian Ocean.
The incident occurred on Tuesday night during an attempted mission to deploy satellites into orbit. Shortly after launch, the spacecraft experienced issues when the release door failed to open properly. This resulted in the rocket spinning out of control, ultimately leading to its destruction over the Indian Ocean.
SpaceX confirmed that the spacecraft experienced a “rapid unscheduled disassembly” – a term the company uses for mid-air break-ups. “Teams will continue to review data and work toward our next flight test,” the company said in a statement published online.
Despite the failure, Musk described the attempt as a “big improvement” on previous test flights, which ended with wreckage scattered over the Atlantic Ocean. He also announced plans to accelerate the testing schedule, with the next three launches expected to occur every three to four weeks.
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This particular flight marked the first time a recycled booster was used as part of the rocket’s construction. Although SpaceX successfully demonstrated booster-catching technology last year, there were no plans to retrieve the booster during this flight. Instead, it disintegrated over the Gulf of Mexico.
Earlier this year, two previous Starship launches also ended in failure shortly after take-off, with both rockets crashing into the ocean before clearing the Caribbean. No injuries or major damage were reported, though the incidents did cause some disruption to air traffic.
In preparation for the latest attempt, the Federal Aviation Administration had approved the launch while expanding the safety hazard zone and scheduling the lift-off outside peak air travel hours. SpaceX also introduced upgrades to the spacecraft, including modified thermal tiles and new catch fittings designed for future recovery tests.
Although this flight was intended to end in the Indian Ocean, the modifications were part of long-term plans to return spacecraft to the launch site eventually.
The repeated failures come at a crucial time for SpaceX, which is under pressure to demonstrate progress with its Starship programme. Nasa is relying on the system for future lunar missions, including an uncrewed flyby of the moon next year, followed by a planned lunar landing with astronauts in 2027.
Chinese electric vehicle (EV) manufacturer BYD has made significant strides in the UK automotive market, achieving remarkable growth and establishing a strong presence. Here are five key developments highlighting BYD's expansion in the UK:
1. Record-breaking sales in Q1 2025
In the first quarter of 2025, BYD sold 9,271 passenger cars in the UK, surpassing its total sales for the entire year of 2024, which stood at 8,787 units. This represents a 625% increase compared to Q1 2024. The company's market share also grew from 0.45% in 2024 to 1.6% in Q1 2025, with a peak of 1.8% in March alone.
2. Expansion of retail network
Since its UK launch in March 2023 with the ATTO 3 SUV, BYD has rapidly expanded its retail footprint. The number of retail sites grew from 14 in January 2024 to 60 by December 2024, with plans to reach up to 100 dealerships by the end of 2025. This expansion has been instrumental in increasing brand visibility and accessibility across the UK.
3. Focus on the fleet market
BYD has strategically targeted the fleet sector to drive growth. In 2024, fleet channels, including Motability, rental, and true fleet, accounted for 61% of BYD's UK registrations, with true fleet alone comprising 47%. The company has also partnered with leasing firms and service providers to enhance after-sales support and build trust within the fleet industry.
4. Introduction of new models
BYD continues to diversify its product lineup in the UK. The SEAL U DM-i, a plug-in hybrid electric vehicle (PHEV), became the best-selling model in its segment in March 2025, while the all-electric SEAL ranked as the seventh most popular pure EV. Additionally, the company introduced the SEALION 7, an all-electric SUV offering up to 312 miles of range, further strengthening its market position
5. Enhanced brand recognition
BYD's aggressive marketing efforts have significantly boosted brand awareness in the UK. Brand recognition increased from 1% in 2023 to 31% in 2024, aided by strategic sponsorships and partnerships, including high-profile events like Euro 2024. These initiatives have played a crucial role in establishing BYD as a prominent player in the UK's EV market.
BYD's rapid growth in the UK is attributed to its record-breaking sales, expansion of the retail network, focus on the fleet market, introduction of new models, and enhanced brand recognition. These strategic moves have positioned BYD as a formidable competitor in the UK's electric vehicle landscape.
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Prime Minister Keir Starmer said boosting indigenous workforce, and controlling migration are his two goals
A record £3 billion will be invested by Britain to enhance training opportunities for local workers and reduce reliance on migrant labour, the government announced on Tuesday.
Prime Minister Keir Starmer said that strengthening the domestic workforce and controlling migration are his twin priorities.
The investment aims to create 120,000 new training opportunities in key sectors such as construction, engineering, health and social care, and digital. The move seeks to realign the skills landscape in favour of young, homegrown talent.
The UK’s economic inactivity rate has been rising since the Covid-19 pandemic and currently stands at 21.4%. Official data shows that more than one in five working-age Britons are not in employment and are not actively seeking work.
Since the local election success of the right-wing, anti-immigration Reform UK party in May, the Labour government has come under pressure to reduce immigration. In response, it plans to tighten citizenship rules, limit skilled worker visas to graduate-level roles, and require companies to invest in training local staff.
A proposed 32% increase in the immigration skills charge is intended to discourage businesses from hiring migrant workers, according to Tuesday’s official statement. This rise could help fund up to 45,000 additional training placements to strengthen the domestic workforce and reduce dependency on foreign labour in priority sectors.
However, businesses have expressed concerns, arguing that they are struggling to recruit enough local workers and that tougher immigration rules could harm the economy unless the country significantly improves its job training infrastructure.
Starmer declared that “the open border experiment has come to an end” with these new measures.
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A key factor behind the latest rise in food inflation is the sharp increase in beef prices
Rising beef prices and costlier fresh produce have driven UK food inflation to its highest rate in a year, according to new figures from the British Retail Consortium (BRC).
In its latest report, the BRC said food prices rose by 2.8% in the year to May, up from 2.6% in April, marking the fourth consecutive monthly increase.
Helen Dickinson, chief executive of the BRC, said retailers were facing growing cost pressures, including higher minimum wages and increased employer National Insurance contributions, which were being passed on to consumers.
A key factor behind the latest rise in food inflation is the sharp increase in beef prices. Nick Allen, chief executive of the British Meat Processors Association, said the price of beef had reached “record levels” due to strong consumer demand and falling supply.
“There’s been a consistent rise in the farm price for beef, and it’s now at a record high,” Mr Allen told the BBC. “Supermarket competition previously kept prices in check, but it was only a matter of time before costs reached consumers.”
Mr Allen added that the industry was finding it difficult to meet the growing demand for beef, and suggested government support had focused more on environmental schemes than on food production.
Jilly Greed, a Devon-based arable farmer and beef producer, explained the price surge was being driven by basic economics. “There’s a 5% shortfall in cattle on the land and a 1% rise in consumer demand. That combination has significantly pushed prices up,” she said, noting the impact was being felt across the supply chain.
The BRC noted that red meat lovers “may have noticed their steak got a little more expensive” in recent weeks.
Tomas Maunier, co-founder of the steakhouse chain Fazenda, said beef prices had jumped by around 20% over the past year, with much of the rise occurring in the past six months. “We’ve passed on about 2% of our increased running costs to customers,” he said. “But we can’t pass on the full increase.”
The latest inflation data raises concerns that ongoing pressures in the meat and produce markets could continue to drive up food prices in the coming months.
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They warned that touching the affected areas could result in burns
A widely sold kitchen appliance has been urgently recalled due to safety concerns. The Haden 11L Stackable Air Fryer, available at Wilko and The Range, has been flagged as a serious fire hazard by the Office for Product Safety and Standards (OPSS).
The UK’s product safety watchdog said the air fryer fails to meet essential safety requirements. Tests found that the appliance’s heating element can exceed the temperature limit of 150°C, causing the outer plastic and metal parts to melt or warp. This poses a significant risk of fire and potential burn injuries.
In a product alert, the OPSS urged customers to stop using the air fryer immediately and return it to any branch of Wilko or The Range for a full refund or store credit.
A joint statement from both retailers, initially issued in February, confirmed that the recall was a precautionary measure after reports of the appliance’s casing melting during extended use at high temperatures. They warned that touching the affected areas could result in burns, and emphasised the potential fire danger.
UK’s product safety watchdog warned it could melt, warp, or catch fireHaden
The product in question is the Haden 11L Stackable Air Fryer with two trays, popular among consumers for its compact design and high-capacity cooking.
No injuries or incidents have been officially reported, but the recall is being treated with urgency. Customers who own the fryer are being strongly advised to act immediately.
For more details, users can visit the official websites of Wilko, The Range, or check the OPSS’s product safety recall list.
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