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Devendra Pant, Chief Economist, India Ratings, says food inflation is cooling off but there are two commodities which could be another source of problem for food inflation in general and your overall inflation in particular. In August ‘24, oil and fats had a deflation of 0.86% and come November it has an inflation of 13.28%. This is one commodity among the food group which can create a problem in the months to come. Now that food prices are softening, do you think they will remain elevated still or do you think this is a temporary relief, a trend perhaps that could sustain? Which one of these do you think it is? Devendra Pant: There will be a relief because generally what happens is when you are entering the winter season, you see the kind of price movement in the vegetables or the fruits, they tend to ease because what happens is either you have the less rainfall or more rainfall and because of that there are some supply shortages.

Subscribe to enjoy similar stories. Interest rates at their highest in decades, wars in Europe and the Middle East, elections in countries as important as America and India. No matter.

MSMEs, estimates suggest the actual number could be significantly higher, potentially reaching 140 million. The informal sector plays a substantial role in India's economy, with numerous unregistered businesses operating outside the formal system. This vast, untapped economic potential presents a significant opportunity for growth, innovation, and development waiting to be leveraged. In an interaction with ET Digital, Oliver Prill, CEO, Tide, says that India offers a tremendous growth opportunity, particularly as the country rapidly advances on its growth trajectory. To capitalise on this potential, it is essential to tap into the MSME sector, which is poised to play a vital role in driving India's economic growth, adds Prill. Edited excerpts:

The Bank of Canada’s latest oversized interest rate cut isn’t expected to deliver immediate relief to the Canadian fixed-mortgage market, experts warn.

Global growth is forecast to moderate, partly due to the heightened uncertainty surrounding U.S. trade policy, and key economies like China, Europe and Canada are expected to loosen monetary policy significantly.

Japanese and Australian shares declined and equity futures for Hong Kong signaled losses after selling on Wall Street hit stocks and government bonds Thursday. The Nasdaq 100 slid 0.7% while the S&P 500 fell 0.5% as traders weighed higher-than-expected jobless claims against too hot producer price data.

You might have thought the Bank of Canada‘s latest interest rate cut — a second consecutive 50-basis-point whopper — would have sent the loonie plunging, but you were wrong if you did.

For someone used to getting his own way for most of his life, public hostility, repeated failure and relentless bad news must be terribly trying for Prime Minister Justin Trudeau. His government began in 2015 with high hopes and widespread good wishes. Now that it is all coming crashing down, he refuses to accept blame and either change course or resign — a personal shortcoming that has become a national problem.

He observed that the share of middle-income countries in global GDP has grown, but their productivity and efficiency remain significantly below those of high-income economies. He added that India is better positioned than many of its peers to navigate the current global challenges. «Time is of essence for India to accelerate its structural reforms and the changes needed are not happening quickly enough,» he said, asking policymakers to capitalise on economy's strengths while addressing inefficiencies and fostering institutional resilience.

The Biden administration has announced it is raising tariffs on solar wafers, polysilicon and some tungsten products from China to protect U.S. clean energy businesses

interest rate cut at RBI's next review meeting in February. Career bureaucrats, the conventional wisdom goes, tend to be more amenable to the gov's view early in their tenure as central bankers. But, eventually, the institutional authority exerts itself in a more autonomous approach.

Subscribe to enjoy similar stories. SINGAPORE : China’s leaders promised more government support for their struggling economy next year as they brace for the return of President-elect Donald Trump and another big showdown over trade. An annual gathering of top officials on the economy concluded with pledges to cut interest rates and boost government borrowing to pep up economic growth, according to a report by China’s state broadcaster Thursday.

The European Central Bank is cutting interest rates by a quarter percentage point amid signs of weakening growth and concern about the impact of political chaos in France and the possibility of new U.S. import tariffs

Wholesale costs in the United States picked up sharply last month, signaling that price pressures are still evident in the economy even though inflation has tumbled from the peak levels it hit more than two years ago

Chinese leaders have wrapped up a two-day planning meeting in Beijing with pledges to take a more proactive approach in pepping up the economy, but gave no details on stimulus measures

European Central Bank has cut rates by a quarter percentage point amid signs of weakening growth and concern about the impact of political chaos in France and the possibility of new U.S. import tariffs. The bank's rate-setting committee made the decision on Thursday at its skyscraper headquarters in Frankfurt to lower the benchmark from 3.25% to 3%.

Vapi, a San Francisco-based startup that helps businesses deploy artificial intelligence-powered voice agents, said on Thursday it raised $20 million from investors, including Bessemer Venture Partners and Y Combinator, in an early-stage funding round. The fundraise valued Vapi at $130 million, according to a source familiar with the matter. Other investors in the round included Abstract Ventures, AI Grant, Saga Ventures and Michael Ovitz, who co-founded the influential Creative Artists Agency.

Indian Sellers Collective, an umbrella body of trade associations and sellers across the country, has urged the finance minister and the GST Council not to accept some of GST rate rationalisation suggestions, including the proposal for inclusion of a special rate of 35 per cent on some products. The sellers body is of the view that a fifth GST slab of 35 per cent on demerit goods such as aerated beverages, cigarettes and tobacco, and pricing-based rate structure will materially and fundamentally alter the country's GST framework with devastating outcomes. These recommendations violate both the letter and the spirit that it will be a 'good and simple tax', Indian Sellers Collective said in a statement on Thursday ahead of the 55th GST Council meeting to be held on December 21, 2024 at Jaisalmer, Rajasthan. «On the contrary, it will hurt the profit margins of the retailers, lead to compliance nightmares and fuel a parallel economy. This move will primarily benefit Chinese producers who dominate the market of cheap products at the cost of Indian producers,» it said.

Union Budget 2025 approaches, leading experts are calling for a significant increase in infrastructure spending to catalyse India's economic growth. The government is urged to go for an 30% annual rise in infrastructure allocations, with demands for the upcoming budget to push capital expenditure to ₹18 lakh crore from last year’s ₹11.1 lakh crore base. Annual increase in capital expenditure is crucial to reversing GDP slowdown and achieving the nation's ambitious economic goals. A robust budget allocation and proactive private-sector participation will be pivotal in ensuring sustainable and inclusive growth.

FTA) with the European Union (EU) during an interaction with Ambassadors from the European Commission delegation and member states. According to the Ministry of Commerce and Industry, the meeting, attended by representatives from Austria, Belgium, Bulgaria, and several other EU nations, along with senior Indian officials, emphasized the growing trade and economic partnership between India and the EU. Highlighting the progress in the FTA negotiations, Goyal acknowledged the need for political guidance to finalize a commercially meaningful agreement that respects the sensitivities of both parties.

Vinayak Chatterjee, Founder & Managing Trustee, The Infravision Foundation, says along with the slowdown in spending, the relatively lower budget increase in infrastructure has impacted GDP growth. In the next six months, the government has to step on the fiscal expenditure pedal and also the Budget pedal. One rupee spent on infrastructure by the government leads to a three-rupee increase in GDP, whereas a one-rupee spent by the government on items like direct benefit transfer (DBT), results in a 90-paisa increase in GDP. So, if the government wants to pump prime the economy for a robust GDP growth, it has to channel money into infrastructure. As far as Budget expectations are concerned, the government should get back the trajectory of 30% increase in infra Budget of the last many years, excluding FY25. On last year's capex base of Rs 11.1 lakh crore, there should be a 30% increase in the upcoming Budget.