India's economy gains pace amid global slowdown

The city skyline is seen beside a construction site of a coastal road project near Haji Ali mosque in Mumbai, India, on May 31, 2023. (REUTERS)
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Updated 31 May 2023
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India's economy gains pace amid global slowdown

  • India's economic growth accelerates to 6.1 percent in March, government data shows
  • Indian government expects growth could remain around 6.5% in current fiscal year

NEW DELHI: India's economic growth accelerated to 6.1% in the March quarter, government data showed on Wednesday, boosted by government and private capital spending even as private consumption remained sluggish.

Wednesday's reading showed India remains one of the fastest growing emerging economies, especially with China's recovery stumbling.

The government expects growth could remain around 6.5% in the current fiscal year, despite risks emerging from a global slowdown.

"The risks are evenly balanced between the downside and the upside," V. Anantha Nageswaran, chief economic adviser at the finance ministry, told reporters after the data release.

He said indicators such as auto, steel, and power consumption for April showed a pick-up in activity and sustained growth momentum.

Asia's third-largest economy expanded faster than the forecast of 5.0% by economists in a Reuters poll in the last quarter of the 2022/23 fiscal year through March, up from a revised 4.5% in the previous quarter.

The full-year growth estimate was revised to 7.2% from an earlier estimate of 7%. India's economy grew 9.1% in 2021/22.

Economists, however, warned that the global slowdown and volatility in financial markets pose a risk to exports and the growth outlook in coming quarters.

"The growth outlook is (not) without risks - particularly in regards to the monsoon progress and recession risks globally," said Sakshi Gupta, economist at HDFC bank.

She added growth numbers, however, reflected optimism for the Indian economy despite global headwinds.

The Reserve Bank of India (RBI) has raised its benchmark repo rate by 250 basis points (bps) since May last year and economists expect it to leave the rate unchanged for the rest of 2023 as it waits to see the impact of earlier hikes.

The manufacturing sector, which for the past decade has accounted for just 17% of the economy, expanded 4.5% year-on-year in the March quarter, compared with a revised 1.4% contraction in the previous three months.

Forecasts for normal monsoon season rains in the next four months could support the farm sector, which grew 5.5% year-on-year in the March quarter compared with an upwardly revised 4.7% in the previous quarter.

UNEVEN RECOVERY

Private consumption, which accounts for nearly 60% of the economy, grew 2.8% year-on-year compared with a revised 2.2% in the previous quarter, while capital formation, an indicator of investment, rose 8.9% from a downwardly revised 8%.

Federal government spending, constituting about 10% of GDP, rose 2.3% year-on-year in the latest quarter, compared with a revised 0.6% contraction in the previous quarter.

Prime Minister Narendra Modi, who remains popular after nine years in power, has stepped up capital spending in the past few years to build roads, railways, and new airports to revive the economy after the pandemic.

Economists said the world's most populous country needs to grow by between 7% and 8% a year and build a strong manufacturing base to create jobs for millions of workers. Currently, 45% of India's workforce is employed in the farm sector, which contributes just 15% to the economy.

The lack of well-paying jobs remains a major issue among the youth, as reflected in the unemployment rate rising to 8.1% in April, as more people joined the workforce, according to the Mumbai-based think tank Centre for Monitoring Indian Economy.


French court gives man suspended sentence for Iran consulate intrusion

Updated 57 min 54 sec ago
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French court gives man suspended sentence for Iran consulate intrusion

  • The court banned him from carrying a weapon or approaching the consulate again

PARIS: A French court this week handed an Iran-born man a suspended 10-month sentence for entering the Iranian consulate in Paris with fake grenades in what he said was “revenge” for a crackdown at home that targeted his family.
The 61-year-old, a long-time resident of France who regularly attends Iranian opposition demonstrations, told the court he acted on Friday after learning the previous day that his sister had been arrested.
He said he had not wanted to “threaten anyone” but rather “take revenge” on the Iranian authorities, who he described as “terrorist.”
The court, in a ruling late on Monday, also banned him from carrying a weapon or approaching the consulate again.
Soldiers and police descended en masse on the neighborhood around the consulate on Friday after the mission reported an intruder entering with a grenade or explosive belt.
But police found no explosives on him or inside after arresting him.
A police source, who did not wish to be named, said the suspect had been wearing a vest with large pockets containing three fake grenades.
The judge said witnesses recounted the man “tearing down flags” and saying he “wanted to die.” Police negotiators managed to convince him to exit the building without his jacket.
A psychiatric expert found the man was of sound mind.
During his trial, the accused embarked on long tirades about the political situation in Iran, prompting the judge to remind him to “stick to the facts.”
The man had already been convicted for setting fire to tires in front of the entrance of the Iranian embassy in Paris in 2023, prosecutors said.
Citizens in the Islamic republic have endured increased repression since nationwide protests began in September 2022.
The demonstrations were sparked by the death in custody of 22-year-old Mahsa Amini, who was arrested for allegedly flouting the mandatory dress rules for women.
Executions — which activists say are a way to instil fear into Iranian society — have also continued apace.
At least 110 people have been executed this year alone, according to the Norway-based Iran Human Rights group.


At least five migrants die in attempt to cross English Channel

Updated 47 min 8 sec ago
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At least five migrants die in attempt to cross English Channel

  • People smugglers typically overload rickety dinghies, leaving them barely afloat and at risk of being lashed by the waves

PARIS: At least five migrants died in an attempt to cross the English Channel from an area near the French town of Wimereux on Tuesday, police said.
The French coast guard confirmed a police rescue operation had found several “lifeless bodies” following a failed attempt to cross the Channel.
A coast guard spokesperson said its agents were still operating at sea after what the official called a “busy” morning, with several crossing attempts.
The attempts took place after Britain’s upper house of parliament passed legislation on Monday night that will allow the UK government to send asylum-seekers to Rwanda rather than stay in Britain for processing.
Stopping the flow of migrants is a priority for British Prime Minister Rishi Sunak’s government, which says the Rwanda plan will act as a deterrent. Human rights groups and other critics say it is inhumane.
La Voix du Nord newpaper said about 100 migrants had been rescued early on Tuesday, with three helicopters and several rescue boats taking part in the operation.
Tens of thousands of migrants — many fleeing wars and poverty in Africa, the Middle East and Asia — have reached Britain in recent years by crossing the Channel in small boats on risky journeys organized by people-smuggling gangs.
The Channel is one of the world’s busiest shipping lanes and currents are strong, making the crossing on small boats dangerous.
The people smugglers typically overload the boats, leaving them barely afloat and at risk of being lashed by the waves as they try to reach British shores.


Asia hit hardest by climate, weather disasters in 2023— UN 

Updated 23 April 2024
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Asia hit hardest by climate, weather disasters in 2023— UN 

  • Climate change exacerbated severity of weather disasters last year, sauys World Meteorological Organization
  • 79 disasters, mostly floods and storms, associated with water-related weather hazards were reported in Asia in 2023

Geneva: Asia was the world’s most disaster-hit region from climate and weather hazards in 2023, the United Nations said Tuesday, with floods and storms the chief cause of casualties and economic losses.

Global temperatures hit record highs last year, and the UN’s weather and climate agency said Asia was warming at a particularly rapid pace.

The World Meteorological Organization said the impact of heatwaves in Asia was becoming more severe, with melting glaciers threatening the region’s future water security.

The WMO said Asia was warming faster than the global average, with temperatures last year nearly two degrees Celsius above the 1961 to 1990 average.

“The report’s conclusions are sobering,” WMO chief Celeste Saulo said in a statement.

“Many countries in the region experienced their hottest year on record in 2023, along with a barrage of extreme conditions, from droughts and heatwaves to floods and storms.

“Climate change exacerbated the frequency and severity of such events, profoundly impacting societies, economies, and, most importantly, human lives and the environment that we live in.”

The State of the Climate in Asia 2023 report highlighted the accelerating rate of key climate change indicators such as surface temperature, glacier retreat and sea level rise, saying they would have serious repercussions for societies, economies and ecosystems in the region.

“Asia remained the world’s most disaster-hit region from weather, climate and water-related hazards in 2023,” the WMO said.

The annual mean near-surface temperature over Asia in 2023 was the second highest on record, at 0.91 degrees Celsius above the 1991-2020 average, and 1.87 C above the 1961-1990 average.

Particularly high average temperatures were recorded from western Siberia to central Asia, and from eastern China to Japan, the report said, with Japan having its hottest summer on record.

As for precipitation, it was below normal in the Himalayas and in the Hindu Kush mountain range in Pakistan and Afghanistan.

Meanwhile southwest China suffered from a drought, with below-normal precipitation levels in nearly every month of the year.

The High-Mountain Asia region, centered on the Tibetan Plateau, contains the largest volume of ice outside of the polar regions.

Over the last several decades, most of these glaciers have been retreating, and at an accelerating rate, the WMO said, with 20 out of 22 monitored glaciers in the region showing continued mass loss last year.

The report said 2023 sea-surface temperatures in the northwest Pacific Ocean were the highest on record.

Last year, 79 disasters associated with water-related weather hazards were reported in Asia. Of those, more than 80 percent were floods and storms, with more than 2,000 deaths and nine million people directly affected.

“Floods were the leading cause of death in reported events in 2023 by a substantial margin,” the WMO said, noting the continuing high level of vulnerability of Asia to natural hazard events.

Hong Kong recorded 158.1 millimeters of rainfall in one hour on September 7 — the highest since records began in 1884, as a result of a typhoon.

The WMO said there was an urgent need for national weather services across the region to improve tailored information to officials working on reducing disaster risks.

“It is imperative that our actions and strategies mirror the urgency of these times,” said Saulo.

“Reducing greenhouse gas emissions and adapting to the evolving climate is not merely an option, but a fundamental necessity.”


UN officials urge UK to reconsider plan to transfer asylum seekers to Rwanda

Updated 23 April 2024
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UN officials urge UK to reconsider plan to transfer asylum seekers to Rwanda

  • UN called on the UK to instead take practical measures to address irregular flows of migrants and refugees

GENEVA: Two United Nations top officials on Tuesday called on the UK to reconsider its plan to transfer asylum seekers to Rwanda, warning the move would have a harmful impact on human rights and refugee protection.
In a joint statement, Filippo Grandi, the UN High Commissioner for Refugees, and Volker Turk, the UN High Commissioner for Human Rights, called on the UK to instead take practical measures to address irregular flows of migrants and refugees.
“The new legislation marks a further step away from the UK’s long tradition of providing refuge to those in need, in breach of the Refugee Convention,” said Grandi.
Turk, who has criticized the plan before, said that the legislation “seriously hinders the rule of law in the UK and sets a perilous precedent globally.”
British Prime Minister Rishi Sunak promised on Monday to start sending asylum seekers to Rwanda within 10 to 12 weeks as the upper house of parliament passed legislation that had been delayed for weeks by attempts to alter the plan.
Other countries are considering tough measures to stem illegal migration, with Italy planning to build reception camps in Albania for thousands of migrants arriving by sea.


Asia hit hardest by climate, weather disasters in 2023:UN

Updated 23 April 2024
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Asia hit hardest by climate, weather disasters in 2023:UN

  • UN’s weather and climate agency said Asia was warming at a particularly rapid pace

GENEVA: Asia was the world’s most disaster-hit region from climate and weather hazards in 2023, the United Nations said Tuesday, with floods and storms the chief cause of casualties and economic losses.
Global temperatures hit record highs last year, and the UN’s weather and climate agency said Asia was warming at a particularly rapid pace.
The World Meteorological Organization said the impact of heatwaves in Asia was becoming more severe, with melting glaciers threatening the region’s future water security.
The WMO said Asia was warming faster than the global average, with temperatures last year nearly two degrees Celsius above the 1961 to 1990 average.
“The report’s conclusions are sobering,” WMO chief Celeste Saulo said in a statement.
“Many countries in the region experienced their hottest year on record in 2023, along with a barrage of extreme conditions, from droughts and heatwaves to floods and storms.
“Climate change exacerbated the frequency and severity of such events, profoundly impacting societies, economies, and, most importantly, human lives and the environment that we live in.”
The State of the Climate in Asia 2023 report highlighted the accelerating rate of key climate change indicators such as surface temperature, glacier retreat and sea level rise, saying they would have serious repercussions for societies, economies and ecosystems in the region.
“Asia remained the world’s most disaster-hit region from weather, climate and water-related hazards in 2023,” the WMO said.
Ranging disasters
The annual mean near-surface temperature over Asia in 2023 was the second highest on record, at 0.91 degrees Celsius above the 1991-2020 average, and 1.87 C above the 1961-1990 average.
Particularly high average temperatures were recorded from western Siberia to central Asia, and from eastern China to Japan, the report said, with Japan having its hottest summer on record.
As for precipitation, it was below normal in the Himalayas and in the Hindu Kush mountain range in Pakistan and Afghanistan.
Meanwhile southwest China suffered from a drought, with below-normal precipitation levels in nearly every month of the year.
The High-Mountain Asia region, centered on the Tibetan Plateau, contains the largest volume of ice outside of the polar regions.
Over the last several decades, most of these glaciers have been retreating, and at an accelerating rate, the WMO said, with 20 out of 22 monitored glaciers in the region showing continued mass loss last year.
The report said 2023 sea-surface temperatures in the northwest Pacific Ocean were the highest on record.
Water-related hazards
Last year, 79 disasters associated with water-related weather hazards were reported in Asia. Of those, more than 80 percent were floods and storms, with more than 2,000 deaths and nine million people directly affected.
“Floods were the leading cause of death in reported events in 2023 by a substantial margin,” the WMO said, noting the continuing high level of vulnerability of Asia to natural hazard events.
Hong Kong recorded 158.1 millimeters of rainfall in one hour on September 7 — the highest since records began in 1884, as a result of a typhoon.
The WMO said there was an urgent need for national weather services across the region to improve tailored information to officials working on reducing disaster risks.
“It is imperative that our actions and strategies mirror the urgency of these times,” said Saulo.
“Reducing greenhouse gas emissions and adapting to the evolving climate is not merely an option, but a fundamental necessity.”