India witnessing V-shaped recovery since June: FinMin Report
India has been witnessing a ‘V-shaped’ recovery since June with the gradual easing of restrictions on economic activities, said a Finance Ministry report.
“The sustained improvement in high frequency indicators ignite optimism of an improved performance in second half of the year,” it said
The Monthly Economic Recovery for December by the Department of Economic Affairs (DEA) also noted that the impending vaccination is set to spur the momentum in economic activity globally.
“The effective management of Covid-19 spread despite the festive season and onset of winter season, combined with sustained improvement in high frequency indicators and V-shaped recovery along with easing of lockdown restrictions distinguish Indian economy as one riding against the Covid-wave,” it said.
The agricultural sector remains the bright spot of Indian economy, with healthy year-on-year growth of 2.9 per cent in rabi sowing, accelerating tractor sales, and reservoirs’ live storage at 122 per cent of decadal average.
“This rise in rural incomes is mirrored in the healthy, though moderated, sales in passenger vehicles, two and three wheelers and tractor, and a rebound in vehicle registrations for the first time after March 2020,” it added.
Further, the industrial production growth ran parallel to the festive fervour of October and rose to an eight-month high, led by manufacturing and electricity sector. The core industries registered slight decline in November driven by natural gas and cement, while coal production, electricity and fertilizers’ production registered growth.
Dubai Startup Hub launches eight guides to support entrepreneurs
Guides cover key sectors of Fintech, Healthcare, Transportation, Education, F&B, Social Impact, Sustainability, and Travel, Tourism & Hospitality
The Dubai Chamber of Commerce and Industry’s Dubai Startup Hub initiative has launched eight guides to help startups in the UAE do business, as the Chamber concluded its fifth and final ‘Networking Series’.
The new guides cover eight key sectors, namely, Fintech, Healthcare, Transportation, Education, F&B, Social Impact, Sustainability, and Travel, Tourism & Hospitality. They provide ample resources – including relevant data, statistics, opportunities, and legislation – for entrepreneurs looking to launch startups in each of the eight sectors, additionally offering advice on how to apply for licences.
The guides also provide a comprehensive list of business incubators and accelerators that can help entrepreneurs grow their startups, as well as events and conferences that focus on their specific sectors.
The fifth edition of Dubai Chamber’s Networking Series drew more than 360 participants, 22 per cent of them Emirati entrepreneurs, in addition to startup owners from around the world tuning in for the virtual event.
“The guides are an innovative new tool to help promising startups in each of the target sectors,” asserted Natalia Sycheva, senior manager, Special Projects and Entrepreneurship at Dubai Chamber. “They form part of the Chamber’s plan to address the repercussions of the Covid-19 pandemic, where a significant chunk of our investments has been earmarked for knowledge-building and providing information for entrepreneurs and startups at this critical time.”
“The Dubai Startup Hub’s mandate is to support emerging companies and help them understand and navigate the procedures for establishing businesses in Dubai,” she explained. “The initiative serves to facilitate the exchange of knowledge and lays solid foundations for partnership and cooperation, all in an effort to drive growth in the emirate’s startup scene. This ultimately boosts Dubai’s entrepreneurial ecosystem and strengthens its position as a global destination for new businesses.”
Dubai Chamber’s Networking Series has drawn more than 1,650 participants throughout its five editions, including entrepreneurs, startup founders, and investors, where a total of 48 meetings were held. Attendees came together to showcase success stories, explore ways to overcome challenges, highlight the necessary tools for business development, and help create an environment for networking and building new relationships.
Established by Dubai Chamber in 2016, Dubai Startup Hub is the first initiative of its kind in the Middle East and North Africa region, with a mandate to emphasise the value of public and private sector collaboration, in addition to fostering innovation and entrepreneurship as key drivers of the economy in Dubai and the UAE.
The initiative provides a multi-programme platform for entrepreneurs from around the world to explore business opportunities in Dubai, while also enabling them to benefit from a set of initiatives and services, such as the Market Access Programme, Emirati Development Programme, Dubai Smartpreneur Competition, and the Co-Founder Dubai Programme, among others.
India’s economy most resilient in sub-region: UN
CEBR said the current growth trajectory will see India become the world’s third largest economy by 2030, overtaking the UK in 2025, Germany in 2027 and Japan in 2030
India’s economy, currently the sixth largest in the world, would be the “most resilient” in the sub region of South and South-West Asia over the long term, according to a report by the United Nations.
The country’s positive economic growth in the post-Covid-19 era, and its large market will continue to attract investments, driving resilience, according to the report compiled by the United Nations Economic and Social Commission for Asia and the Pacific.
The report, titled ‘Foreign Direct Investment Trends And Outlook In Asia And The Pacific 2020/2021’, said that inward foreign direct investment flows to South and South-West Asia slightly decreased by two per cent in 2019, from $67 billion in 2018 to $66 billion in 2019. In the first three quarters of 2020, the value of greenfield FDI inflows declined by 43 per cent compared to the same period last year, signalling a reversal of the growth trend in the sub region.
Most of the greenfield flows (87 per cent) were destined for India, although the overall greenfield inflows to the country declined by 29 per cent. Equally, FDI from India is projected to decline in 2020, with the largest MNEs revising their earnings down by 25 per cent in early 2020 due to the impacts of the pandemic.
“However, India’s economy could prove the most resilient in the sub region over the long term. FDI inflows have been steadily increasing and positive, albeit lower, economic growth after the pandemic and India’s large market will continue to attract market-seeking investment,” the report said.
India’s fast-growing telecom and digital space, in particular, could see a faster rebound as global venture capital firms and technology companies continue to show interest in the country’s market through acquisitions, it said. It also noted that Facebook and Google’s investment in Jio Platforms in 2020 worth $5.7 billion and $4.5 billion respectively were testaments to this trend.
The UK-based Centre for Economics and Business Research (CEBR) said the current growth trajectory will see India become the world’s third largest economy by 2030, overtaking the UK in 2025, Germany in 2027 and Japan in 2030.
The International Monetary Fund has said that the Indian economy would contract by a massive 10.3 per cent this year, but is likely to bounce back from the Covid-19 induced recession with an impressive 8.8 per cent growth rate in 2021.
Most Asia markets advance after Wall Street sets new records
Tokyo and Wellington piled on more than one percent each, while Hong Kong, Sydney, Singapore, Manila and Jakarta also enjoyed healthy gains.
Asian markets mostly rose on Tuesday following a record-breaking lead from Wall Street as investors cheered the passage of a huge US stimulus bill, which has helped temper fears about surging coronavirus infections and a new, fast-spreading strain of the disease.
With Donald Trump’s decision to finally sign off on the $900 billion rescue package and a post-Brexit trade deal now agreed, the mood on trading floors is a little lighter heading into the new year.
News that more vaccines could be rolled out soon was also providing a lift, even as governments around the world are forced to impose lockdowns and other strict, economically painful measures to contain surging Covid-19 cases.
“Where we are right now in the equity market is somewhat of a sweet spot,” Michael Cuggino, at Permanent Portfolio Family of Funds, told Bloomberg TV. “We’ve got stimulus, likely more on the way.
“You’ve got great comps on earnings going into next year with respect to equities, and you have a pent-up demand situation as the economy both in the US and globally comes out of Covid.”
Trump had held off signing the stimulus package for almost a week saying it did not provide enough cash to Americans and calling for handouts to be jacked up to $2,000 from the $600 amount offered in the initial bill.
Democrats agreed more was needed for people and on Monday the House of Representatives approved a motion to increase the payments, though it will likely meet resistance from Republicans in the Senate.
President-elect Joe Biden, asked by a reporter Monday if he favoured raising the payouts to $2,000, replied, “Yes.”
All three main indexes ended at record highs, as did Germany’s DAX, and most of Asia followed suit.
Tokyo and Wellington piled on more than one percent each, while Hong Kong, Sydney, Singapore, Manila and Jakarta also enjoyed healthy gains. Shanghai barely moved, and Seoul and Taipei were slightly lower.
The cash handouts will “provide that immediate key consumption bridge through the first quarter until the vaccines become more widely distributed”, said Axi strategist Stephen Innes.
“The stipends will arrive quickly and are spent rapidly, providing the US economy with immediate retail sales spending bonanza boost. This splurge could be multiplied by three if the Senate agrees to rubber-stamp support for increased Covid cheques.”
Tokyo – Nikkei 225: UP 1.6 percent at 27,292.37 (break)
Hong Kong – Hang Seng: UP 0.8 percent at 26,528.34
Shanghai – Composite: FLAT percent at 3,398.16
Pound/dollar: UP at $1.3475 from $1.3451 at 2245 GMT
Euro/pound: UP at 90.80 pence from 90.71 pence
Euro/dollar: UP at $1.2235 from $1.2213
Dollar/yen: UP at 103.80 yen from 103.76 yen
West Texas Intermediate: UP 0.7 percent at $47.96 per barrel
Brent North Sea Crude: UP 0.7 percent at $51.20 per barrel
New York – Dow: UP 0.7 percent at 30,403.97 (close)
London – FTSE 100: UP 0.1 percent at 6,502.11 (close)