Asia's Economic Outlook

The aftermath of the COVID-19 pandemic has impacted the Asia-Pacific region battling with disrupted economic growth. However, Asia is one of the few regions expected to perform better than the rest of the world. The Asian economy is facing a mix of both economic instability and economic growth. Two of the region's largest economies including China and India are going in opposite directions, with China suffering from a property market crisis and deflation while India making notable progress. 

According to the IMF, growth in Asia was estimated to be around 4.7% in 2023, up 0.1% from the previous 4.6% projection in October 2023. China and India are the key economies for the upward revision. In China, increased spending on disaster reconstruction and resilience projects supported growth. In India, growth was supported by strong domestic demand. The IMF has upgraded Asia's growth forecast for 2024 from the previous projection of 4.2% in October 2023 to 4.5%. In emerging and developing Asia, the growth is expected to decline from 5.4% in 2023 to 5.2% in 2024 and 4.8% in 2025. The growth in the Middle East and Central Asia is forecasted to increase from 2% in 2023 to 2.9% in 2024 and 4.2% in 2025. 

Although the IMF has upgraded the growth estimates, China’s property sector could further cut domestic demand, especially if the stress level rises in local government finances. It would potentially impact regional exports, reducing demand for exports. In addition, China has had an inflation rate of around 0.3% in 2023 with the economy heading towards deflation. Other potential risks such as tighter-than-expected conditions in Asia and the US could impact heavily indebted industries and economies. Geopolitical tensions in the Middle East can impact global trade as Yemeni Houthis are continuously attacking the ships of Israel and its allies. As we mentioned in our article about the 20 countries with the highest tariffs, the traffic through the Red Sea has declined by over 40% since the attacks from Houthis, disrupting global supply chains. On average nearly 50 ships pass through the Red Sea each day, comprising $3 billion to $9 billion worth of cargo. 

According to S&P Global Inc. (NYSE:SPGI), the Asia-Pacific region is expected to continue rapid economic expansion followed by resilient domestic demand in China, India, Indonesia, Malaysia, and the Philippines. In addition, strong foreign direct investment (FDI) inflows in India and other South Asian countries will positively impact the economic growth in the region. On January 17, Reuters reported that India has attracted FDI inflows worth $33 billion in the first six months of the current financial year that started in April 2023. India recorded an FDI of $71 billion in the 2022-23 financial year.

Most of the poorest countries in the world are based out of sub-Saharan Africa having the lowest GDP per capita. Along with African countries, some Asian countries also have the lowest GDP per capita in the world, including Afghanistan, Syria, and Sri Lanka.

Major Companies that are Driving Asia's Growth

JD.com Inc (NASDAQ:JD), Reliance Industries Limited (NSE: RELIANCE), and SM Investments Corporation (PSE:SM) are some of the leading companies that play an important role in their respective economies and across the Asia Pacific. 

JD.com Inc (NASDAQ:JD) is one of the top e-commerce firms based out of China and one of the biggest competitors of Alibaba Group Holding Limited (NYSE:BABA). On March 6, JD.com Inc (NASDAQ:JD) reported its earnings for the fiscal fourth quarter of 2023. The company posted earnings per share of $0.74, beating consensus estimates by $0.11. The revenue for the quarter amounted to $42.52 billion, surpassing estimates by $914.80 million. Here are some of the comments from the company’s earnings call:

Reliance Industries Limited (NSE:RELIANCE) is India’s leading multinational giant. On February 28, Reliance Industries Limited (NSE:RELIANCE) announced that its subsidiary, Reliance Consumer Products Limited (RCPL), has partnered with Sri Lankan beverage company Elephant House. This new collaboration will allow Elephant House to manufacture, distribute, and sell beverages in India and help RCPL enhance its beverage portfolio. 

SM Investments Corporation (PSE:SM) is a Filipino conglomerate that has a diversified portfolio in shopping mall development, retail, banking, real estate development, and tourism. On February 28, SM Investments Corporation (PSE:SM) reported that its consolidated revenues soared by 11% to PHP 616.3 billion in 2023 from PHP 553.0 billion in 2022. The net income was reported around PHP 77 billion in 2023, which grew 25% from PHP 61.7 billion in 2022. SM Investments Corporation (PSE:SM) sees potential for regional development and targeted high-growth sectors. Here is what the President and CEO of the company, Frederic C. DyBuncio, said:

With this context, let’s take a look at the 25 poorest countries in Asia by GDP per capita. 

25 Poorest Countries in Asia by GDP per Capita

Our Methodology

To compile our list of the poorest countries in Asia by GDP per capita, we have shortlisted the countries based on GDP per capita (current prices) from the International Monetary Fund (IMF) database. We have ranked the countries in descending order of their GDP per capita, as of 2024. The data for some countries was not available on the IMF, therefore, we sourced the GDP per capita for those countries from the World Bank database, which includes Afghanistan, Syria, and Sri Lanka. We have also highlighted the GDP (current prices) of the countries, wherever available, and the data is taken from the IMF database, as of 2024. 

25 Poorest Countries in Asia by GDP per Capita

25. Iran

GDP Per Capita (2024): $20,694

On March 21, S&P Global Inc. (NYSE:SPGI) reported that the US sanctions on Iran have not worked as intended, as per the panelists from the webinar hosted by the Middle East Institute. Iran has a GDP of $386.22 billion and ranks 25th among the poorest countries in Asia by GDP per capita. 

24. Turkmenistan

GDP Per Capita (2024): $20,551

Turkmenistan’s economy is expected to grow 6% in 2024, as per the Asian Development Bank. Turkmenistan has a GDP of around $90.9 billion, as of 2024. 

23. Azerbaijan

GDP Per Capita (2024): $19,370

Azerbaijan is a Central Asian country with a GDP of around $80.98 billion. With a GDP per capita of $19,370, Azerbaijan ranks among the poorest countries in Asia by GDP per capita. 

22. Indonesia

GDP Per Capita (2024): $16,843

Indonesia is one of the largest economies in Asia with a GDP of $1.54 trillion. Indonesia’s 20-year economic plan which was initiated in 2005 will come to an end in 2025. 

21. Mongolia

GDP Per Capita (2024): $15,900

Mongolia has a GDP of around $19.55 billion. According to the IMF, Mongolia has a real GDP growth rate of 4.5%, as of 2024. Mongolia ranks 21st among the poorest countries in Asia by GDP per capita. 

20. Vietnam

GDP Per Capita (2024): $15,318

Vietnam’s economy is in a 'pretty good position', according to Andy Ho, VinaCapital Group’s Chief Investment Officer. Vietnam has a GDP of around $469.67 billion. 

19. Bhutan

GDP Per Capita (2024): $14,920

Bhutan is one of the poorest countries in Asia and has a GDP of around $2.86 billion. 

18. Jordan

GDP Per Capita (2024): $13,442

Jordan has a real GDP growth rate of 2.7% in 2024, as per the IMF. Jordan has a GDP of around $52.66 billion and ranks among the poorest countries in Asia by GDP per capita. 

17. Philippines

GDP Per Capita (2024): $12,127

The Philippines is one of the largest economies in Asia with one of the lowest GDP per capita in the world. The Philippines has a GDP of $475.95 billion. 

16. Iraq

GDP Per Capita (2024): $12,048

Iraq has struggled with terrorism and war for decades now. Iraq has a GDP of $271.47 billion and ranks among the poorest countries in Asia by GDP per capita. 

15. Uzbekistan

GDP Per Capita (2024): $10,909

In September 2023, Uzbekistan’s government adopted the National Development Strategy (NDS) until 2030. Through NDS, Uzbekistan aims to develop objectives and pivotal reforms across different sectors. Uzbekistan has a GDP of $99.58 billion, as of 2024. 

14. Laos

GDP Per Capita (2024): $10,269

Laos is expected to have economic growth around 4% in 2024 compared to growth of 3.7% in 2023, according to the Asian Development Bank. Laos has a GDP of $14.1 billion and ranks among the poorest countries in Asia by GDP per capita. 

13. India

GDP Per Capita (2024): $9,892

India is one of the largest economies in the world with a GDP of around $4.11 trillion, as of 2024. India had a population of around 1.41 billion in 2022, according to the data from the World Bank. 

12. Bangladesh

GDP Per Capita (2024): $9,414

Bangladesh’s economy is improving and has a 6% real GDP growth rate in 2024, as per the IMF. Bangladesh has a GDP of around $455.16 billion. 

11. Pakistan

GDP Per Capita (2024): $6,961

Pakistan is suffering from political and economic instability and relies a lot on IMF loans. With a GDP per capita of $6,961, Pakistan ranks among the poorest countries in Asia by GDP per capita. 

10. Kyrgyzstan

GDP Per Capita (2024): $6,724

Kyrgyzstan is expected to have an improvement in its growth rate from an estimated 3.8% in 2023 to 4% in 2024, as per the Asian Development Bank. Kyrgyzstan has a GDP of $13.66 billion and ranks 10th among the poorest countries in Asia by GDP per capita. 

9. Cambodia

GDP Per Capita (2024): $6,540

Cambodia has a GDP of around $33.23 billion in 2024. With a GDP per capita of $6,540, Cambodia is one of the poorest countries in Asia. 

8. Tajikistan

GDP Per Capita (2024): $5,658

Tajikistan has a real GDP growth rate of around 5% in 2024, as per the IMF. Tajikistan has a GDP of $12.92 billion and a GDP per capita of $5,658. 

7. Myanmar

GDP Per Capita (2024): $5,349

Myanmar averaged a 6% growth rate from 2011 to 2019, according to the World Bank. Myanmar has a GDP of around $79.27 billion, as of 2024. 

6. Nepal

GDP Per Capita (2024): $5,226

Nepal has a GDP of $45.46 billion and a GDP per capita of $5,226. Nepal ranks sixth among the poorest countries in Asia by GDP per capita. 

5. Timor-Leste

GDP Per Capita (2024): $3,706

Timor-Leste has a GDP of $2.04 billion and a GDP per capita of $3,706. Timor-Leste ranks fifth among the poorest countries in Asia by GDP per capita. 

4. Sri Lanka

GDP Per Capita (2022): $3,354

Sri Lanka’s economy has been suffering. However, on March 22, Reuters reported that the economic conditions in debt-stricken Sri Lanka have gradually begun to improve, as per the IMF. Sri Lanka is one of the poorest countries in Asia by GDP per capita. 

3. Yemen

GDP Per Capita (2024): $2,095

Yemen has a GDP of $21.89 billion and is one of the poorest countries in the world. According to the World Bank, Yemen experienced a whopping 52% contraction in real GDP per capita from 2015 to 2022, leaving the majority of the population in crisis. 

2. Syria

GDP Per Capita (2021): $421

Syria had a GDP per capita of $421 in 2021. The country has suffered a lot from war and continues to face more threats. Syria ranks second among the poorest countries in Asia by GDP per capita. 

1. Afghanistan

GDP Per Capita (2021): $356

Afghanistan is the poorest country in the world and has suffered from war for decades. In 2021, Afghanistan had a GDP per capita of $356 in 2021.

 

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The S&P BSE Sensex fell 523 points to 71,072.49 at the closing bell, while the NSE Nifty50 settled 166.45 points lower at 21,616.05. Domestic-focused broader market indices took a bigger hit as concerns over high valuations soured the sentiment on Dalal Street.

Among sectoral indices, heavyweights Nifty Bank and Nifty Financial Services fell sharply, but Nifty PSU Bank registered the biggest drop, falling over 4.4 per cent. Nifty Realty and Nifty Oil & Gas also dipped nearly 3 per cent and 2.6 per cent, respectively. 

The top five gainers on the Nifty50 were Dr. Reddy's, Apollo Hospitals, Divi's Laboratories, Wipro and HCLTech. On the other hand, the top losers were Coal India, Hero MotoCorp, BPCL, ONGC and Tata Steel. 

Domestic markets have been facing weakness since last week, ever since the RBI decided to keep the key lending rates unchanged. While the decision was on expected lines, the fact that the central bank's Monetary Policy Committee (MPC) maintained its hawkish stance dashed hopes of a rate cut in the near future. 

Mandar Bhojane, research analyst at Choice Broking, said, "Indian equity indices concluded lower on February 12, with the Nifty hovering around 21,600, as selling pressure affected various sectors except for IT and pharmaceutical companies." "On the daily chart, Nifty experienced a breakdown of the daily trendline and formed a bearish engulfing pattern with significant volume, indicating weakness in the index. The Relative Strength Index (RSI) exhibited a downward slope at 50.7, suggesting the persistence of bearish momentum. Immediate support levels are identified at 21,500-21,400, while hurdles are anticipated at 21,800 and 21,950," he added. 

 

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The government is focused on improving conditions for the poor, women, youth and farmers, Sitharaman said, setting the tone for welfare schemes to be announced in these areas.

Here are the key statements made by the finance minister in her interim budget speech:

BUDGET 2024: WORKING TO MAKE INDIA A DEVELOPED NATION BY 2047

The government is working to make India a developed country by 2047, Finance Minister Nirmala Sitharaman said.

Presenting the interim Budget 2024-25, Sitharaman also said minimum support prices for 'Annadata' (farmers) have been increased periodically and appropriately.

"The government is focussing on addressing systemic inequalities adding that the emphasis is on outcomes so that socio-economic transformation is achieved.

We focus on outcomes and not outlays," Sitharaman said.

BUDGET 2024: GOVT TO LAUNCH HOUSING SCHEME FOR DESERVING MIDDLE CLASS

The government will launch a housing scheme for deserving middle class to buy or build their own houses, Finance Minister Nirmala Sitharaman said.

Sitharaman said the government will also adopt an economic approach that facilitates sustainable development and improves productivity.

She also mentioned about rooftop solarisation to ensure one crore household free electricity of up to 300 units per month, leading to household savings of Rs 15,000-18,000 annually.

BUDGET 2024: INDIA CLOSE TO ACHIEVING TARGET OF 3 CRORE HOUSES UNDER RURAL HOUSING SCHEME

The country is close to achieving the target of 3 crore houses under the rural housing scheme and two crore more will be constructed in the next five years, Finance Minister Nirmala Sitharaman said.

The finance minister said that to meet investment needs, the government will prepare the financial sector in terms of size, capacity, skills, and regulatory framework.

The government will facilitate high and more resource-efficient economic growth to ensure energy security for the country.

BUDGET 2024: PLANS TO INCREASE MILK, DAIRY PRODUCTION

Nirmala Sitharaman announced plans to increase milk and dairy production in the country. "India is the largest milk producer in the world but there is low productivity. India's milk production rose 4% to 230.58 million tonnes in 2022-23," Sitharaman said.

Efforts of the value addition in agriculture sector and increasing farmers' income will be stepped up, the minister said.

BUDGET 2024: HEALTHCARE COVER UNDER AYUSHMAN BHARAT TO BE EXTENDED TO ALL ASHA, ANGANWADI WORKERS

The government announced the extension of healthcare cover under Ayushman Bharat to all ASHA and anganwadi workers. Ayushman Bharat Pradhan Mantri-Jan Arogya Yojana (AB-PMJAY) is the largest publicly funded health insurance scheme in the world that provides coverage of Rs 5 lakh per family per year for secondary and tertiary care hospitalisation.

Till December 27 last year, 55 crore people belonging to 12 crore families were covered under the scheme, Sitharaman said.

BUDGET 2024: SKILL INDIA MISSION TRAINED, UPSKILLED 1.4 CR YOUTH

As many as 1.4 crore youth were trained and upskilled under the Skill India Mission, Finance Minister Nirmala Sitharaman said. The mission focuses on skilling, re-skilling and upskilling through short-term and long-term training programmes. 

Under the mission, the government, through more than 20 central ministries/departments, is implementing various skill development schemes across the country.

She also said there is a macro-economic stability and the country's economy is doing well.

BUDGET 2024: CAPITAL SPENDING FOR FY25 RAISED 11% TO RS 11.11 LAKH CRORE

The country's capital spending for 2024-25 has been raised 11 per cent to Rs 11.11 lakh crore, or 3.4 per cent of GDP, Sitharaman said.

She said the tripling of capex in the last four years has resulted in a multiplier effect on economic growth and employment generation.

The minister said the Indian air carriers have placed orders for 1,000 new aircrafts.

BUDGET 2024: IN LAST 10 YEARS, 25 CRORE PEOPLE FREED FROM MULTI-DIMENSIONAL POVERTY

Nirmala Sitharaman said 25 crore people got freedom from multi-dimensional poverty in the last 10 years.

Earlier approach of tackling poverty through entitlement resulted in very modest outcomes, she said while presenting the interim Budget in the Lok Sabha. 

There is transparency and assurance that benefits are transferred to all eligible citizens, Sitharaman said.

The National Education Policy is ushering transformational reforms, she added.

BUDGET 2024: 43 CRORE LOANS AGGREGATING TO RS 22.5 LAKH CR EXTENDED UNDER PM MUDRA YOJANA

The government has extended 43 crore loans aggregating to Rs 22.5 lakh crore were extended under the PM Mudra Yojana, Sitharaman said.

Sitharaman said direct benefit transfer of Rs 34 lakh crore through Jan Dhan accounts have resulted in savings of Rs 2.7 lakh crore.

The finance minister also said 30 crore Mudra Yojana loans have been given to women in the last 10 years. "Saturation approach of covering all eligible people is true and comprehensive achievement of social justice and this is secularism in action," she asserted.

BUDGET 2024: GLOBAL AFFAIRS BECOMING MORE COMPLEX, CHALLENGING WITH WARS

Finance Minister Nirmala Sitharaman on Thursday said the global situation is becoming more complex and challenging due to wars and conflicts in different parts of the world. 

"The Russia-Ukraine conflict and the Israel-Hamas war have disrupted the global supply chains, impacting trade. The new world order is emerging and India has successfully navigated the global challenges in fuel and fertiliser price spike," Sitharaman said.

She also said that strengthening the financial sector in the country has helped make savings, credit and investments more efficient.

BUDGET 2024: WORRIES ABOUT FOOD ELIMINATED THROUGH FREE RATION FOR 80 CR PEOPLE

Finance Minister Nirmala Sitharaman said worries about food have been eliminated through free rations for 80 crore people in the country. "India was facing enormous challenges when the Modi government took office in 2014 and overcame those in the right earnest," Sitharaman said.

In November last year, Prime Minister Narendra Modi said his government would extend the free ration scheme for the impoverished population for a five-year period. 

BUDGET 2024: GOVT TO TAKE UP NEXT-GENERATION REFORMS TO FACILITATE GROWTH

The government will take up next-generation reforms to facilitate growth and the next five years will be of unprecedented development and golden moments to realise the dream of developed India by 2047, Sitharaman said.

She outlined the strategy for 'Amrit Kaal' while presenting the interim Budget 2024-25.

The finance minister also said the recently announced India Middle East Europe Economic Corridor will be a game changer for India.

She noted that the International Financial Services Centres Authority (IFSCA) has created a robust gateway for flow of overseas capital

BUDGET 2024: MODI GOVT ADDRESSING SYSTEMATIC INEQUALITIES THAT PLAGUED SOCIETY

The government under the leadership of Prime Minister Narendra Modi is addressing systematic inequalities, which have plagued society, Finance Minister Nirmala Sitharaman said. 

Presenting the interim Budget 2024-25, Sitharaman said economic management over the past decade has complemented people-centric inclusive development.

"All forms of infrastructure are being built in record time. Tax reforms have led to widening of the tax base," Sitharaman said.

STEM (Science, Technology, Engineering, and Mathematics) courses have seen enrolment of 43 per cent women, the highest in the world, she added.

 

{os-gal-1} Kajal Agarwal

The domestic indices were dragged by media, state-owned lenders, energy and metal stocks. The BSE Sensex slumped over 1,050 points to hit sub-70,400 while the NSE barometer Nifty slipped below the 21,250 level. That said, the 30-share pack Sensex plummeted 1,669 points from its day high level of 72,039.20. And, the NSE benchmark was down 519 points from a day high 21,750.25. Such was the fall in the domestic indices that around Rs 8 lakh crore of BSE market capitalisation (m-cap) was wiped out.

Here's a look at today's market fall in numbers:

Rs 8 lakh crore investor wealth lost

Investor wealth, as suggested by the BSE m-cap, fell Rs 8.01 lakh crore to Rs 366.39 lakh crore compared with a valuation of Rs 374.40 lakh crore recorded in the previous session. Frontline stocks such as HDFC Bank, Reliance Industries, Axis Bank, Hindustan Unilever, SBI, L&T and IndusInd Bank contributed to the fall today.

24 stocks hit 52-week lows on BSE

As many as 24 stocks hit their 52-week lows today. BSE stocks such as HDFC Bank, Hindustan Unilever, Orient Electric, VIP Industries and Zee Entertainment touched their respective one-year low levels. That said, 456 stocks touched their one-year high levels today.

2,761 stocks in the red

Out of 4,000 stocks, 2,761 stocks were seen declining. Only 1,098 stocks were advancing, while 141 stocks remained unchanged.

ZEE, IRCON & Network18 crash up to 32%

Shares of ZEE, IRCON International, Network18, HUDCO, Oberoi Realty, RVNL, RITES, Tejas Networks, Engineers India, IRCTC and Prestige Estates cracked up to 32.43 per cent.

Media, PSU Bank & energy among top drags

For Sensex, the major culprits that dragged the index lower were HDFC Bank, Reliance Industries, Axis Bank, Hindustan Unilever, SBI, L&T and IndusInd Bank. HDFC, RIL and Axis alone contributed negatively to a 508-point decline.

On NSE, 12 out of 15 sub-indices were down. Nifty Bank, Nifty Financial Services and Nifty Metal fell sharply.

FII-DII data

Foreign institutional investors (FIIs) sold Rs 545.58 crore worth of shares on a net basis during the previous session and domestic institutional investors (DIIs) offloaded Rs 719.31 crore worth of equity, according to stock exchange data.

 

 

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It was the biggest single-day plunge for both the Sensex and NSE index Nifty in 19 months. While the Sensex tanked by 1,628 points to end the day at 71,500.76, Nifty nosedived 460.35 points or 2.09 per cent to settle at 21,571.95.

The shares at NSE witnessed the biggest single-day loss since June 13, 2022.

The market caps of BSE-listed firms eroded by ₹4,59,327.64 crore to

₹3,70,35,933.18 crore. In two days of market fall, investors' wealth fell by ₹5,73,576.83 crore.

“Hawkish comments by the US Fed triggered a spike in yields on the US 10-year bonds and the US dollar index, which spooked European and Asian markets, including India. India's stock market valuations are also expensively valued compared to other global stock indices and investors would wait for more positive cues now to extend their equity exposure,” Prashanth Tapse, senior vice-president (research), Mehta Equities Ltd., told PTI.

"There are challenges in the near-term such as persisting conflict in the Middle East and worries over delay in the US Fed rate cut, which could dampen investors' sentiment going ahead," Tapse added.

Sensex-listed HDFC Bank saw its shares tank by over eight per cent, day after the company reported a net profit of ₹16,372 crore in its Q3 results.

"Domestic equities plunged amid a weak environment globally and a selloff in HDFC Bank. Banking sector took the biggest hit as Q3 results of HDFC Bank showed stagnant growth for the company. Hawkish Fed commentary, escalating tension in the Middle East, and a spike in bond yield dented investor sentiment," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd told PTI.

 

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The S&P BSE Sensex fell 1.31 per cent to 72,163.82 at 9:16 am, while the NSE Nifty50 lost 1.32 per cent to trade at 21,738.55 points. This is the second day in a row when the benchmark indices have struggled for momentum.

Even the broader market indices came under pressure in early trade due to the overall sentiments on Dalal Street; volatility also rose sharply during the trading session.

Nifty Bank fell over 2.37 per cent and Nifty Financial Services fell 2.49 per cent, while Nifty Auto, Nifty Metal and Nifty Realty were down over 1 per cent. The weakness in banking and financial shares comes a day after HDFC Bank, the country's largest private lender, reported its Q3FY24 results.

The top five gainers on the Nifty50 were TCS, L&T, HCLTech, Coal India and Apollo Hospitals. On the other hand, the biggest drags on the 50-share index were HDFC Bank, Bajaj-Auto, Hindalco, Tata Steel and Kotak Mahindra Bank.

Ahead of today's market opening, Deven Mehata, research analyst at Choice Broking, said, "The benchmark Indian indices are likely to open lower on January 17 as trends in the GIFT Nifty indicate a negative start for the broader index."

"After a gap down opening Nifty can find support at 21,800 followed by 21,750 and 21,700. On the higher side, 22,000 can be an immediate resistance, followed by 22,100 and 22,200," he added.

 

 

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In the energy sector, Tata Power and US-based First Solar have decided to expand their existing capacities in Tamil Nadu. Tata Power has decided to commit to an exploratory capital expenditure of ₹50,000 crore to ₹60,000 crore. First Solar has decided to increase its existing $700 million investment to nearly $1 billion. 

In the automotive sector, Hyundai looks to extend its 26-year-long innings in Tamil Nadu after announcing an additional ₹6,000 crore investment in addition to ₹20,000 crore it had decided to invest to build new product lines and machinery. Moreover, the state will witness the entry of Vietnamese EV major VinFast which will set up a plant in Tuticorin with an investment outlay of $2 billion.

Additionally, French glassmaker Saint-Gobain and US-based logistics company UPS are the other companies that have decided to expand their presence in the southern state. Saint Gobain announced that its ₹3,400 crore investment in a greenfield site at Oragadam, outside Chennai, would be completed by FY28. Meanwhile, UPS is on track to advance its expansion in India in a year and expand its Global Capability Centre footprint in Chennai.

As most economists have predicted, investing in human capital, design and engineering besides just manufacturing is India's way forward to add more value to its growth. Tamil Nadu is imminently on the right path with its focus on building new plants and creating jobs, while also laying emphasis on design, R&D and developing human capital. However, it remains to be seen how much of these investment promises will actually come to fruition in the coming years.

 

 

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The Tata Group alone is investing close to Rs 67,000 crore in the state across its group companies in power & electronics. In a shot in the arm for TN's renewable energy goals, Tata Power is making a Rs 55,000 crore investment to set up 10 GW of renewable energy projects with a mix of solar power and wind energy in the next 5-7 years.

Highlighting that Jio has invested Rs 35,000 crore in TN, Mukesh Ambani said in a message that RIL has partnered with Canada's Brookfield asset management and US-based Digital Reality to set up a state-of-the-art data centre, that will be opened next week. Reliance has committed to making new investments in Tamil Nadu in renewable energy and green hydrogen.

Hyundai has announced an additional Rs 6,000 crore investment for the state over and above the Rs 20,000 crore investment announced last year. The company will also collaborate with IIT-Madras and Guidance Tamil Nadu to set up a hydrogen valley innovation hub.

 

 

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He was speaking at the 26th edition of the state’s flagship tech showcase -- Bengaluru Tech Summit (BTS) 2023--that began on Wednesday. Data from Software Technology Parks of India (STPI) showed that India's IT exports was Rs 7.8 lakh crore during the same period.

The three-day summit based on the theme -- Breaking Boundaries – has set the stage for a convergence of tech leaders, startups, investors, and research labs from over 30 countries, to deliberate upon emerging technologies, ideas powering newer digital imperatives and how companies are navigating the future embracing AI as the gamechanger. BTS has also made a significant stride by committing to achieve net zero in the coming years.

“Karnataka is home to 14,000 startups contributing to an ecosystem valuation of $164 billion. We are home to around 40 unicorns, and the promise of upcoming unicorns on the horizon solidifies our position as a global innovation hub,” said Kharge. Bengaluru has clinched the 8th spot in the Global Startup Ecosystem Index by Startup Blink.

Karnataka chief minister Siddaramaiah said the state has become the most sought-after destination for global capability centres (GCCs), hosting around 40% of GCCs in India. “The availability of a skilled digital talent pool, a thriving innovation and startup ecosystem, and a conducive policy environment have fuelled the growth story of GCCs in Karnataka,” said Karnataka chief minister Siddaramaiah. India’s GCC market is expected to more than double to $110 billion by 2030 from the current $45 billion housing 2,500 tech centres, showed an EY report titled Future of GCCs in India—vision 2030.

Industries minister MB Patil said an interesting fact to note is that in the year 2000, there were less than 22 GCCs in Karnataka. “Currently, Karnataka is home to 440 GCCs. This means that the state has added approximately around 20 new GCCs every year from 2000 to 2022,” he said.

Siddaramaiah said Karnataka is home to over 5,500 IT/ITeS companies and approximately 750 MNCs. “This vibrant industry has not only provided direct employment to over 12 lakh professionals, but has also generated over 31 lakh indirect jobs,” he added. Besides IT/ITeS, Karnataka has over 40% share in electronics design, 52% share in machine tools manufacturing, a 65% share in aerospace & defence manufacturing and a 60% share in biotechnology exports, the government said. About 63% of the state’s total installed capacity in renewable energy is sourced from renewable sources.

Kharge said the state government has set up a Skill Advisory Committee for emerging technologies, with industry and academia as its partners.” The main objective of this committee is to provide guidance, policy advisory and action-oriented recommendations to bridge the skill gaps between industry requirements and Karnataka’s tech talent pool. This committee provides a collaborative framework for government, industry and academia to design, plan and implement skills development, programmes,” he added.

Karnataka deputy chief minister DK Shivakumar has floated a novel idea seeking private sector participation and support from foundations in equipping rural education centres to hone their skills in emerging tech skills which is reshaping the tech landscape. “I’m creating a new education system for rural Karnataka. I would seek your support in deploying your CSR funds to play the catalyst in developing the skills of students in rural Karnataka. I spoke to Azim Premji Foundation and various other leaders, and they have come forward with a commitment of over Rs 2,000 crore to be spent on primary education in rural areas,” he said.

 

 

 

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Several leaders of the BJP on Sunday took to X and shared a screenshot with the claim that India's GDP had crossed US dollar 4 trillion. However, the claim proved to be fake and several ministers including Arjun Ram Meghwal and others had to take down their tweet.

The Congress Member of Parliament said that while the whole nation was watching the India vs Australia final match of the ICC Cricket World Cup 2023, "various drumbeaters of the Modi Govt including senior Union ministers from Rajasthan and Telangana, the Deputy CM of Maharashtra, as well as the PM's most favoured businessman, tweeted that yesterday itself India's GDP had crossed the $4 trillion mark."

Union Minister Gajendra Sekhawat of the BJP who is from Rajasthan, G Kishan Reddy from Telangana, Maharashtra Deputy CM Devendra Fadnavis and businessman Gautam Adani were among the prominent people who had tweeted about India crossing $4 trillion GDP mark on Sunday. The screenshot proved to be false and the ministers and businessman had to take down or delete their tweets.

 

 

"This was totally FAKE and BOGUS news meant to generate more euphoria and a pathetic attempt at both sycophancy and headline management," said Ramesh in his tweet, calling out the ruling party leaders who shared the post along with the claim on India's GDP.

 

 

 

{os-gal-1} Kajal Agarwal