World Bank raises India’s FY25 GDP growth forecast to 7 per cent
The Reserve Bank of India anticipates the economy to grow by 7.2 per cent in the fiscal year 2024/25.
A drone view of the construction work of the upcoming coastal road in Mumbai, India. (Photo credit: Reuters)
By EasternEyeSep 04, 2024
THE WORLD Bank on Tuesday raised its forecast for India's GDP growth to 7 per cent for the current fiscal year, up from an earlier estimate of 6.6 per cent. This revision is attributed to increased government spending on infrastructure.
India’s economic growth had slowed to 6.7 per cent in the April-June quarter, as data from last week showed, due to reduced government spending during the national elections.
The Reserve Bank of India anticipates the economy to grow by 7.2 per cent in the fiscal year 2024/25.
The World Bank also noted that India’s medium-term economic growth rate is expected to remain robust, averaging 6.7 per cent over the next two fiscal years. It added that private investment is expected to gradually increase, supporting a recovery in consumption.
However, the report highlighted challenges such as job creation, noting that the urban unemployment rate remains high at an average of 17 per cent.
Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)
VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.
The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.
According to Vedanta's exchange filing on Thursday, the lenders involved in the deal include Standard Chartered Bank and its Mauritius unit, First Abu Dhabi Bank, Mashreqbank, and Sumitomo Mitsui Banking Corp.
Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt.
The company lowered its net debt by £876m, bringing it down to £8.1 billion in fiscal 2025.
By clicking the 'Subscribe’, you agree to receive our newsletter, marketing communications and industry
partners/sponsors sharing promotional product information via email and print communication from Garavi Gujarat
Publications Ltd and subsidiaries. You have the right to withdraw your consent at any time by clicking the
unsubscribe link in our emails. We will use your email address to personalize our communications and send you
relevant offers. Your data will be stored up to 30 days after unsubscribing.
Contact us at data@amg.biz to see how we manage and store your data.
Trump said that while deals are being made with some countries, others may face tariffs.
US PRESIDENT Donald Trump on Friday said a "very big" trade deal could be finalised with India, suggesting significant movement in the ongoing negotiations between the two countries.
“We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India," Trump said at the “Big Beautiful Bill” event at the White House.
The president also mentioned a trade agreement with China but did not provide details. "Everybody wants to make a deal and have a part of it. Remember a few months ago, the press was saying, 'You really have anybody of any interest? Well, we just signed with China yesterday. We are having some great deals," he said.
‘Some we are just gonna send a letter’
Trump said that while deals are being made with some countries, others may face tariffs. "We're not gonna make deals with everybody. Some we are just gonna send a letter saying thank you very much, you are gonna pay 25, 35, 45 per cent. That's an easier way to do it," he said.
Trump's comments come as an Indian delegation led by chief negotiator Rajesh Agarwal arrived in Washington on Thursday for the next round of trade talks with the US.
Talks ahead of July 9 deadline
Both countries are working on an interim trade agreement and are aiming to conclude it before July 9. The US had announced high tariffs on April 2, but the Trump administration suspended them until July 9.
Agriculture and dairy remain sensitive areas for India, which has not included dairy in any of its free trade agreements so far. India is cautious about offering duty concessions in these sectors.
The US is seeking duty reductions on items such as industrial goods, automobiles (especially electric vehicles), wines, petrochemical products, dairy products, and agricultural goods like apples, tree nuts, and genetically modified crops.
India, on the other hand, wants duty concessions for sectors such as textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas.
ASDA, one of Britain’s largest supermarkets, has reported a pre-tax loss of £599 million for 2024, swinging sharply from a £180 million profit the previous year.
The loss comes despite total sales rising by over £1 billion to £26.8bn, as the retailer faces mounting debt costs, falling sales, and spiralling spending on a major IT overhaul, the Telegraph reported.
The main blow to Asda’s finances has come from its heavy debt load, a legacy of its £6.8bn buyout by the Issa brothers and private equity firm TDR Capital in 2021.
According to the report, the company’s debt pile, now close to £5bn, has become much more expensive to service as interest rates have risen. Last year, finance costs jumped by 38 per cent to £611 million, up from £441 million the previous year
Asda said it was forced to pay higher rates after refinancing part of its debt, putting further pressure on its bottom line.
Another major factor behind the loss is the ongoing “Project Future” – Asda’s multi-year plan to separate its computer systems from former owner Walmart. The project has been beset by delays and cost overruns, with total spending now approaching £1bn, far above its original budget
Last year alone, Asda spent £310m on the IT transition, which has included job cuts and outsourcing as the company tries to control costs. Problems with the new systems have also led to pay errors for thousands of staff.
While overall revenue rose thanks to new store openings, underlying sales have slipped. Like-for-like sales, excluding fuel, fell by 3.4 per cent to £21.7bn, with food sales down 3.7 per cent.
Meanwhile, Asda’s share in the UK grocery market has dropped to a record low of 12.1 per cent, with the retailer losing ground to rivals such as Tesco, Aldi, and Lidl
Despite efforts to win back shoppers with price cuts and a new convenience store push, Asda was the only major supermarket to report a sales decline in recent months, analysts said.
The company’s results were also hit by a £378m impairment charge, reflecting a drop in the value of its stores and assets. These one-off costs, combined with the IT spending, were singled out by Asda as the main reasons for the headline loss.
“The reported overall loss is the result of two significant one-off costs,” an Asda spokesman said, pointing to the impairment and Project Future costs. “These are not recurring costs and do not reflect the underlying performance of the business”
Allan Leighton, who returned as chairman last year, has launched a price war and cost-cutting drive to try to restore Asda’s fortunes. He has described many of the company’s problems as “self-inflicted” and is aiming to “turn it into what it was”. However, he has warned that a full recovery could take several years.
Despite the bleak headline numbers, Asda insists its core business remains profitable, with a pre-tax profit of £115m before exceptional items. Adjusted earnings before rent also rose slightly to £1.14bn.
Keep ReadingShow less
Mounjaro, or tirzepatide, is part of a new class of weight-loss medications, with trials showing patients losing an average of 20 per cent of their body weight after 72 weeks.
ELI LILLY said on Thursday that it has received approval from India's drug regulator to launch pre-filled injector pens of its weight-loss drug, Mounjaro.
The move gives the company more options to compete with Novo Nordisk, which recently launched its weight-loss drug Wegovy in the country.
Lilly began selling Mounjaro in India in late March for treating diabetes and obesity. Until now, it was available only in 2.5 mg and 5 mg vials.
"With this approval, all six dosage options for Mounjaro will soon be available in India, supporting a more personalised approach to treatment," Lilly India President Winselow Tucker said.
According to a company statement, the Central Drugs Standard Control Organization has approved Mounjaro KwikPen, for once-weekly use, in six dose strengths: 2.5 mg, 5 mg, 7.5 mg, 10 mg, 12.5 mg and 15 mg.
The approval will allow Lilly to compete more directly with Denmark-based Novo Nordisk, which launched Wegovy in India on Tuesday with multiple dose strengths and an “easy-to-use” pen device.
India, with a rising number of diabetes and obesity cases, presents a major market for weight-loss drugs. A study published in the medical journal The Lancet ranks India among the top three countries globally for high obesity rates.
Lilly did not share pricing details. Each Mounjaro pen will have four fixed doses of 0.6 ml.
Mounjaro and Wegovy are part of a class of drugs known as GLP-1 receptor agonists. These help regulate blood sugar levels and slow digestion, which makes people feel full for longer periods.
In India, both companies are expected to face competition from domestic generic drugmakers that are working on lower-cost versions of Wegovy. The drug’s active ingredient, semaglutide, is set to go off patent in India next year.
(With inputs from Reuters)
Keep ReadingShow less
FILE PHOTO: US president Donald Trump and Indian prime minister Narendra Modi shake hands as they attend a joint press conference at the White House in Washington, D.C., U.S., February 13, 2025. REUTERS/Kevin Lamarque.
TRADE talks between India and the US have hit a roadblock over disagreements on import duties for auto components, steel and farm goods, Indian officials with direct knowledge said, dashing hopes of reaching a deal ahead of president Donald Trump's July 9 deadline to impose reciprocal tariffs.
The deadlock marks a sharp shift from earlier optimism, following Trump's claim that New Delhi had proposed a "no tariffs" agreement for American goods, and officials from both sides suggesting India could be among the first countries to strike a deal on the new US tariffs.
India is pushing for a rollback of the proposed 26 per cent reciprocal tariff set to take effect on July 9, along with concessions on existing US tariffs on steel and auto parts. But US negotiators have not yet agreed to the demands, three Indian government officials said.
"The US side first wants India to commit to deeper import tariff cuts on farm goods like soybeans and corn, cars and alcoholic beverages along with easing of non-tariff barriers," leading to disagreement between the two sides, one of the sources said.
The sources spoke on condition of anonymity, citing the confidentiality of the ongoing discussions.
India's commerce ministry, the US Embassy in New Delhi and the US Trade Representative Office did not immediately respond to requests for comment.
An Indian delegation is expected to travel to Washington before the deadline, although discussions may now focus on a broader agreement rather than a rushed interim deal, a second Indian government source said.
Prime minister Narendra Modi is trying to position India as a key US partner, seeking to attract US firms like Apple, diversifying supply chains away from China.
But trade talks have struggled to make headway.
"We are keen, but not desperate to sign a deal before the July 9 deadline," the first source said, adding that India has offered tariff cuts on almonds, pistachios, walnuts, and was willing to extend preferential treatment for American imports in sectors like energy, autos and defence.
"There hasn't been much progress despite several rounds of talks," the second source said.
Still, the sources did not rule out a last-minute breakthrough if Modi and Trump choose to intervene directly.
Despite the impasse, Indian officials stress long-term commitment to the US as a trusted economic partner, while maintaining policy independence.
Modi and Trump agreed in February to conclude the first phase of a bilateral trade agreement by autumn 2025 and to expand trade to $500 billion (£395bn) by 2030, from about $191bn (£151bn) in 2024.
India is also advancing talks with the European Union for a free trade pact later this year, and recently concluded talks for a FTA with the UK - moves aimed at hedging against potential US policy shifts under Trump.
"The ball is now in the US court. India is not for any win-lose trade partnership," said Ram Singh, head of the Indian Institute of Foreign Trade, a government funded think-tank.
Even in a worst-case scenario, a third official said, India could absorb the impact of reciprocal tariffs, citing its continued tariff advantage over competitors like Vietnam and China.
India's exports to the US rose to $17.25bn (£13.6bn) in April-May, up from $14.17bn (£11.2bn)a year earlier, suggesting the US tariff hikes averaging 10 per cent in early April had a limited impact.