Tag: India

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First interest rate cut for India since 2020

India interest rate

The Reserve Bank of India (RBI) has cut its benchmark interest rate by 25 basis points to 6.25%, marking the first rate cut since May 2020

This decision comes amid concerns over a slowdown in the world’s fifth-largest economy.

The central bank forecast real GDP growth for next fiscal year at 6.7%, and inflation rate at 4.2%.

The RBI’s Monetary Policy Committee (MPC) cited the need to support economic activity as the primary reason for the rate cut. The Indian economy has been experiencing sluggish growth, with GDP expanding at a slower pace than expected.

Data driven

The latest data shows that the economy grew by just 5.4% in the September quarter, the slowest rate in seven quarters. This slowdown has been attributed to tepid urban consumption and sluggish manufacturing.

Inflation, which had been a major concern for the RBI, has shown signs of easing. Retail inflation dropped to a four-month low of 5.22% in December 2024, providing the central bank with some room to focus on growth rather than solely on price stability.

RBI Governor Sanjay Malhotra, in his first monetary policy review, reportedly stated that inflation is expected to further moderate in 2025-26.

Benefits

The rate cut is expected to benefit borrowers, including homeowners and small businesses, by making borrowing cheaper. However, it may also lead to lower returns on fixed deposits, posing a challenge for savers, especially senior citizens who rely on interest income.

The government’s recent budget, which included sweeping income tax cuts, is also aimed at putting more money in the hands of consumers and boosting spending.

Together with the rate cut, these measures are expected to provide a much-needed stimulus to the economy.

While the rate cut is a positive step towards reviving growth, it also underscores the challenges facing the Indian economy.

The RBI will need to carefully monitor inflation and other economic indicators to ensure that the measures taken do not lead to unintended consequences such as higher inflation.

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India’s economy smashes expectations with 8.4% growth

India GDP smashes expectations

India is ‘easily’ the fastest growing economy in the world according to the IMF, as the country’s Q3 GDP growth soared past analysts’ estimates.

The world’s fastest growing major economy expanded 8.4% in the last three months of 2023.

8.4% GDP growth in Q3

At 8.4%, India’s economy expanded at its fastest pace in six quarters, data showed late Thursday, on strong private consumption and upbeat manufacturing and construction activity. Reuters estimates had pegged growth in the October to December period at 6.6%.

Prime Minister Narendra Modi posted on the social media platform X, that it shows ‘the strength of Indian economy and its potential.’

India economy due to jump ahead of Japan and Germany

India is forecast to leap ahead of Japan and Germany as the world’s third biggest economy in the next few years.

The better-than-expected growth was led by a strong performance by the country’s manufacturers, with the sector expanding by 11.6% in the period.

Private consumption, which makes up almost two-thirds of the country’s gross domestic product (GDP), also rose by 3.5%.

India is on a tear.

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Intuitive Machines lands on the moon 22nd February 2024 in historic first for a U.S. company

First U.S. landing on the moon since 1972

A U.S. company has gone to the moon – and creates a little piece of history

Intuitive Machines’ Nova-C cargo lander, named ‘Odysseus’ after the mythological Greek hero, is the first U.S. spacecraft to soft land on the lunar surface since 1972.

Japan, India and China have all had recent successful moon mission ahead of the U.S.

Intuitive Machines is the first company to pull off a moon landing – government agencies have carried out all previously successful missions.

The company’s stock surged in extended trading Thursday, after falling 11% in regular trading.

Lander visual

Hunt for water

The targeted landing site was a cratered terrain next to a 5km-high mountain complex known as Malapert. It’s the southernmost point on the Moon ever visited by a spacecraft.

It’s on the shortlist of locations where Nasa is considering sending astronauts later this decade as part of its Artemis programme.

It is reported that there are some deep craters in this region that never see any sunlight – they’re permanently in shadow – and scientists believe frozen water could be inside them.

Art illustration on Intuitive Machines luna lander

Art illustration on Intuitive Machines luna lander

See other recent moon landings

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Big tech vows action on ‘fake’ AI in elections

Fake AI news

Most of the world’s largest tech companies, including Microsoft, Amazon and Google have agreed to tackle what they are calling deceptive artificial intelligence (AI) in elections

The tech accord

The twenty companies have signed an accord committing them to fighting voter-deceiving content. They say they will deploy technology to detect and counter the material.

The Tech Accord to Combat Deceptive Use of AI in 2024 Elections was announced at the Munich Security Conference on Friday 16th February 2024.

The issue has come into sharp focus because it is estimated up to four billion people will be voting this year in countries such as the U.S., UK and India.

Technology to mitigate risk

Among the accord’s pledges are commitments to develop technology to mitigate risks related to deceptive election content generated by AI, and to provide transparency to the public about the action firms have taken.

Other steps include sharing best practice with one another and educating the public about how to spot when they might be seeing manipulated content.

Signatories include social media platforms X, Snap, Adobe and Meta, the owner of Facebook, Instagram and WhatsApp.

Proactive

However, the accord has some shortcomings, according to computer scientist Dr Deepak Padmanabhan, from Queen’s University Belfast, who has co-authored a report on elections and AI.

But he reportedly said they needed to take more proactive action instead of waiting for content to be posted before then seeking to take it down.

That could mean that realistic AI content, that may be more harmful, may stay on a platform for longer compared to obvious fakes which are easier to detect and remove, he suggested.

Target

The accord’s signatories say they will target content which deceptively fakes or alters the appearance, voice, or actions of key figures in elections.

It will also seek to deal with audio, images or videos which provide false information to voters about when, where, and how they can vote.

We have a responsibility to help ensure these tools don’t become weaponised in elections, Brad Smith, the president of Microsoft is reported to have said.

These measures, in my opinion, are a sticking plaster and will not stop the spread of dishonest and fake news!

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Polluting coal users and renewable producers

Coal fired power

The highest coal using countries in the world

  • China, which consumes over half of the global coal demand and produces over 4 billion tonnes of coal per year.
  • India, which consumes about 14% of the global coal demand and produces over 900 million tonnes of coal per year.
  • The United States, which consumes about 9% of the global coal demand and produces over 600 million tonnes of coal per year.
  • Japan, which consumes about 3% of the global coal demand but imports most of its coal.

These countries accounted for about 82% of the global coal production in 2021 according to 2021 data set. China alone produced more than half of the world’s coal, followed by India with nearly 10%.

Global coal use in 2023 hits few high

Global coal use in 2023 has hit a record high, surpassing 8.5 billion tons for the first time, on the back of strong demand in countries like India and China, said IEA. These countries are the world’s largest consumers of the dirtiest fossil fuel, and continued modernization puts their energy consumption on a rapid growth trajectory.

China

China and India’s growing economies will continue to fuel demand for coal even as they set ambitious renewable energy targets, according to experts.

While China is the world’s largest energy consumer, India is ranked third globally, and both countries are the top consumers of coal as they strive to fuel economic growth. 

China’s share of global electricity consumption, 60% of which is coal, is set to jump to one-third by 2025, compared with a quarter in 2015, according to projections by energy watchdog International Energy Agency (IEA).

Global coal usage in 2023 hit a record high, surpassing 8.5 billion tons for the first time, on the back of strong demand in emerging and developing countries such as India and China, IEA noted in a recent report. 

China’s electricity sector has been in the throes of a clean revolution over the past few years, with an almost five-fold growth in wind and solar generation since 2015. As a result, the share of coal generation has fallen by 17 percentage points, from 78% in 2000 to 61% in 2022. 

China has suffered from drought in recent years, which reduced hydroelectric power generation in its southern provinces. To maintain the necessary power output, the country had to turn to coal. 

United States

By contrast, U.S., which is the world’s second largest consumer of coal, has seen a decrease in its usage of the fuel. According to the Institute for Energy Economics and Financial Analysis, the amount of coal that the superpower consumes each day recorded a 62% drop from 2.8 million to 1.1 million tons a day.

75% of India’s power is derived via coal-fired plants. Coal accounts for 61% of China’s power generation, even though the country is recognized as the indisputable leader in renewable energy expansion. It has been adding new projects to the grid almost as fast as the rest of the world combined in 2022 and has ambitions of becoming carbon neutral by 2060.

Annual average capacity additions by country and region, 2016-2023

See IEA report

India’s coal production rose to 893 million tons during the financial year ending March 2023, jumping nearly 15% from a year earlier. China’s raw coal production in 2023 went up by 2.9% compared with the same period in 2022.

There are no signs of a slowdown, with the IEA saying coal consumption in India and Southeast Asia is projected to grow significantly.

Coal won’t go!

But the lack of reliability of renewables means coal has still very much been a critical fallback option for the two countries.

Top five coal producing countries in the world

  • China: 4,126.0 million tonnes
  • India: 762.0 million tonnes
  • Indonesia: 614.0 million tonnes
  • United States: 523.8 million tonnes
  • Australia: 467.1 million tonnes

Five of the Greenest energy producers in the world

  • Sweden
  • Norway
  • Denmark
  • Finland
  • Switzerland

The greenest were based on these five criteria: carbon emissions, energy transition, green society, clean innovation, and climate policy.

Top countries by renewable energy production

  • China: 2,271.9 TWh (28.2% of total electricity)
  • United States: 804.8 TWh (20.5% of total electricity)
  • Brazil: 491.9 TWh (83.3% of total electricity)
  • Canada: 433.6 TWh (66.9% of total electricity)
  • India: 303.5 TWh (24.5% of total electricity)

Note: three of the world’s worst offenders of fossil fuel use are also in the top five for energy production by renewables – China, U.S. and India.

So, are things changing slowly?

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India’s ‘massive expansion’ could play key role in global economic growth

India expands

Many economists stronly believe that India’s stellar economic trajectory alongside strong forecasts for some Southeast Asian countries will be important drivers for future global growth.

The next decade, could see Asia Pacific become the fastest growing region of the world economy. India, Indonesia, the Philippines and Vietnam will most likely be among the world’s fastest growing emerging markets over the next 10 years.

India’s economy grew 7.8% in the June quarter, marking the fastest pace of growth in a year.

The momentum in the Indian economy looks really strong at the moment, economists suggest. Some forecasts expect that India will surpass Japan to become the third largest economy by 2030, with the country’s GDP projected to rise from $3.5 trillion in 2022 to $7.3 trillion by 2030.

As a region, Asia-Pacific’s growth is expected to strengthen from 3.3% last year to 4.2% this year, according to economic projections.

Over the next decade, we expect that about 55% of the total increase in the world’s GDP will come from the Asia-Pacific region.

Where does this leave the U.S. and China?

Still, the U.S. will remain an important driver of the global economy, accounting for some 15% of the world’s growth over the next decade.

China will also still be pivotal in this growth story, contributing to about one-third of the total increase over the same period, analysts suggest. China’s recovery has been weaker than expected and the expected ‘growth momentum’ has wained.

China has been affected by a slew of economic data broadly missing expectations.

As a whole, analysts expect global growth to come in at 2.5% this year and next. But please bear in mind these are forecast and move regularly.

Ashoka Chakra – the Flag of India

The flag of India is a horizontal tricolour of saffron, white and green, with a navy blue wheel called the Ashoka Chakra in the centre. The flag was adopted on 22nd July 1947, after India gained independence from British rule.

It is based on the Swaraj flag, which was designed by Pingali Venkayya and modified by Mahatma Gandhi. The colours and symbols of the flag have different meanings and interpretations.

Saffron represents courage, sacrifice, Hinduism and Buddhism. White represents peace, truth, purity and other religions in India. Green represents faith, fertility, Islam and Sikhism.

The Ashoka Chakra represents the law of dharma, the cycle of life and death, and the ancient Indian emperor Ashoka who spread Buddhism across Asia.

India’s flag is also known as the Tiranga, which means ‘the tricolour’ in Hindi. The flag has a ratio of 2:3 and can only be made of khadi, a hand-spun cloth.

The flag code of India regulates the usage and display of the flag by the government and the public.

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Another BIG blast off moment for India on the global stage as it hosts the G20 Summit

India G20

India hosting the G20 summit

The G20 summit will be held in New Delhi on 9th and 10th September 2023. This is the first time that India has hosted such a prestigious event, which brings together the leaders of the world’s 20 major economies with the exception of Russia.

India has invited several other countries and organisations to attend the summit, to include Bangladesh, Egypt, Spain, Netherlands, Nigeria, Mauritius, Singapore, Oman, UAE, UN, IMF, WHO, WTO, ILO, OECD, ISA, CDRI and ADB.

Broad range of issues

The summit will cover a range of issues, such as global health and pandemic response, economic recovery and resilience, climate change and environment, digital transformation and innovation, and gender equality and women empowerment. India has also proposed three new agenda items for the summit: reformed multilateralism, physical and social infrastructure for rapid inclusive development, and media and entertainment.

Major global player

India hopes that the G20 summit will cement its role as a major global player and showcase its achievements and aspirations to the world. However, the summit also faces some challenges and uncertainties, such as the absence of China’s Xi Jinping and Russia’s Vladimir Putin, the possibility of failing to agree on a joint communique, and the criticism of India’s beautification efforts that have displaced many poor people and animals.

Significant growth expected for India

India’s economy is expected to grow significantly in the coming years. For example, some economists predict that India’s annual gross domestic product growth (GDP) will average 6.3% through 2030. Others estimate that India’s GDP is likely to more than double from current levels by 2031. The OECD also forecasts that India will grow by 6% in 2023–24 and by 7% in 2024–25.

Some of the factors that may contribute to India’s economic growth are its strong emphasis on physical infrastructure development, ease of doing business, improved global conditions, and increased public spending on health care. However, there are also some challenges and risks that India may face, such as inflationary pressures, global uncertainties, environmental issues, and the labour market.

What is the G20?

The G20 is a group of 20 major economies that meet annually to discuss global issues such as economic growth, trade, development, health, climate change and energy.

India plays host to the G20 (2023)

Members of the G20

  • Argentina
  • Australia
  • Brazil
  • Canada
  • China
  • France
  • Germany
  • India
  • Indonesia
  • Italy
  • Japan
  • Republic of Korea
  • Mexico
  • Russia
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Kingdom
  • United States
  • European Union

The European Union is represented by the European Commission and the European Central Bank. The G20 accounts for around 80% of gross world product, 75% of international trade, two-thirds of the global population, and 60% of the world’s land area. 

The G20 was founded in 1999 in response to several world economic crises and has become the primary venue for international economic and financial cooperation.

There is a possibility that the summit could be overshadowed by India and Modi, who has given the event ‘major’ attention.

Update

African Union made permanent member of G20 ‘family’ of countries at the India hosted summit 2023.

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Japan’s moon launch carrying lunar lander and X-ray telescope

Japan rocket to explore galaxies

Japan launched a rocket on 7th September 2023 carrying an X-ray telescope that will explore the origins of the universe and a small lunar lander.

The launch of the HII-A rocket from Tanegashima Space Centre in southwestern Japan was shown live by the Japan Aerospace Exploration Agency (JAXA).

Thirteen minutes after the launch, the rocket put into orbit around Earth a satellite called the X-Ray Imaging and Spectroscopy Mission, or XRISM, which will measure the speed and makeup of what lies between galaxies.

That information helps in studying how celestial objects were formed, and hopefully can lead to solving the mystery of how the universe was created, JAXA reports.

In cooperation with NASA, JAXA will look at the strength of light at different wavelengths, the temperature of things in space and their shapes and brightness.

Smart

Also aboard the Japanese rocket is the Smart Lander for Investigating Moon, or SLIM, a lightweight lunar lander. The Smart Lander reportedly won’t make lunar orbit for three or four months after the launch and would likely attempt a landing early 2024, according to the space agency.

Japan launched a rocket on 6th September 2023 carrying an X-ray telescope that will explore the origins of the universe and a small lunar lander.

Going to the moon has fascinated humankind for decades. Under the U.S. Apollo program, astronauts Neil Armstrong and Buzz Aldrin walked on the moon in 1969.

Only four nations have successfully landed on the moon, the U.S., Russia, China and India.

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India’s mission to the sun is next

India mission to the sun

Mission to the sun

Days after India’s successful moon mission, the country is now setting its sights on the sun. 

According to the Indian Space Research Organization (ISRO), the Aditya-L1 spacecraft will be launched from the Sriharikota Spaceport on 2nd September 2023 in a bid to study the sun and its effect on space weather. 

Aditya (sun in Hindi)

Aditya, which refers to the sun in Hindi, is to be placed in a halo orbit around the Lagrangian point 1 of the Sun-Earth system, where the sun can be observed without any obstructions, an ISRO report stated.  

Lagrange points are positions in space where gravitational forces of two large masses produce ‘enhanced regions of attraction and repulsion’, according to NASA. The resulting force can be used to remain in position and reduce fuel consumption – and can be likened to ‘parking places’ for spacecraft.

To become India’s first space based observatory

The launch will mark India’s first space-based observatory to study the sun, and would offer a ‘major advantage of continuously viewing the sun without any occultation or eclipses’, the ISRO report stated.

India mission to the sun
India’s mission to the sun

The mission would also allow for the study of solar wind, which could potentially cause disturbances on Earth, such as disrupting communications, navigation systems and weather patterns.

India’s government had granted a $46 million budget for the mission back in 2019.

India recently became only the fourth country to land on the moon, doing so with the relatively low budget of $75 million. This was a massive achievement and one India celebrated with relish.

While a first attempt for India, other countries have successfully placed orbiters to study the sun. NASA’s Parker Solar Probe in 2021 which was sent to the sun’s corona to sample particles and magnetic fields, as well as the European Space Agency’s Solar Orbiter which was launched the year before. 

See India’s moon mission article here

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Science fiction becomes science fact for India

India lands on the moon

Inspirational achievement, as India becomes only the fourth country in the world to successfully land on the moon and the first at the south pole

India became a new national superpower in space on 23rd August 2023, landing its Chandrayaan-3 mission safely on the moon’s unexplored south pole. The Chandrayaan-3 spacecraft launched last month and touch downed on the lunar surface around 13:34 GMT.

The Chandrayaan-3 spacecraft launched last month and touch downed on the lunar surface around 13:34 GMT. The feat makes India the fourth country, after Russia, the U.S. and China – to land on the moon, and the first to land on one of the moon’s lunar poles.

South pole is the place to explore

The lunar south pole has emerged as a place of recent exploration interest thanks to recent discoveries about traces of water ice on the moon. India previously attempted a lunar south pole landing in September 2019, but a software failure caused the Chandrayaan-2 mission to crash into the surface.

The south pole is the place to be right now as it is such a very interesting, historical, scientific and geologic area that a lot of countries are trying to get at that can serve as a base for future exploration.

The discovery of water on the south pole of the moon is important for future exploration, as it could serve as a source of fuel for rockets and spacecraft.

Days prior to Chandrayaan-3′s scheduled landing, Russia attempted to land its first spacecraft on the moon in almost 50 years. But the Luna-25 mission crashed into the lunar surface on Saturday, with Russian space agency Roscosmos confirming the spacecraft spun out of control.

To infinity and beyond

During a June visit from India’s Prime Minister Narendra Modi, he signed agreements alongside President Joe Biden to join the Artemis Accords and further collaborate on missions between Indian Space Research Organisation – ISRO and NASA. Next year, the space agencies are expected to work together to fly Indian astronauts to the International Space Station.

Moon mission
No looking back! India becomes only 4th country in the world to land on the moon’s south pole August 23rd 2023

India has also done more with less than its top global counterparts, with ISRO’s annual budget a fraction of NASA’s. In 2020, ISRO estimated the Chandrayaan-3 mission would cost about $75 million. The Covid pandemic delayed the Chandrayaan-3 mission from launching in 2021.

The lander – called Vikram after Indian Space Research Organisation (ISRO) founder Vikram Sarabhai – carries within its belly the 26kg rover named Pragyaan, the Sanskrit word for wisdom.

One of the mission’s major goals is to hunt for water-based ice, which scientists say could support human habitation on the Moon in future and allow for easier future space exploration.