HIGHLIGHTS OF THE WEEK

Arun Nayyar said that MSME will be crucial as India gets closer to its goal of a $5 trillion economy. In 2023, 75% of MSME owners predicted that consumer demands would increase. MSMEs in Chennai had the highest expectations for growth, with about 86%, followed by 83% in Hyderabad and 81% in Mumbai.

Weekly MSME News Updates

Santosh Kumar Sarangi said that India’s exports of merchandise are expected to reach USD 450 billion in this financial year. India’s free-trade pact with the UAE and Australia is likely to boost exports in the upcoming fiscal year. India has increased its presence in “non-traditional markets” such as Africa, Latin America, and the Oceania region. 

A logistics project will receive Rs 8,200 crore from the US-based Mobility Infrastructure Group. Canadian-based QSTC will contribute an additional Rs 8,200 crore to defence and aerospace programmes. India plans to export $5 billion worth of defence products in the near future. The two defence corridors in Tamil Nadu and Uttar Pradesh are viewed as the Center’s efforts toward achieving this objective.

India’s economy grew as a result of the services sector, which was heavily influenced by the IT/ITeS sector. The major change was brought about by the Modi government’s Make in India campaign, which placed a strong emphasis on the necessity of pulling manufacturing out of its current situation. 74% of government incentives are targeted toward new-age industrial sectors. 

India’s continued efforts to encourage domestic chip production can greatly benefit the country’s local needs as well as its ability to become a larger exporter. India may be skilled at designing chips, but its dependence on imports is caused by a lack of fabs. Ashwini Vaishnaw said that there are around 24,000 design engineers working in India.

The Inc42 report stated that, between 2014 and 2022, $4 billion in funding was invested in Chennai startups. A 69% CAGR in funding over three years was noted. Iron Pillar, Chiratae Ventures, Tiger Global, and Sequoia were the notable investors in the startups. In terms of total funding amount and deal count, Chennai is experiencing the most year-over-year change.

For India to meet its expanding demand for food, feed, fibre, and biofuels, scientific solutions are required. Deepak Pental said that crop rotation, crop diversification, and doubling livestock and crop output are among the goals of agricultural R&D. With Bt cotton, India was able to reverse the trend of declining cotton output and yields, rising costs, and import reliance.

Global News

While the unemployment rate decreased to 3.5%, nonfarm payrolls rose by 223,000 for the month. The average hourly wage climbed by 4.6% from a year ago and by 0.3% for the month. The industry with the most job growth was leisure and hospitality, adding 67,000 positions, followed by health care (55,000), construction (28,000), and social assistance (20,000).

The European Commission announced a $3.8 trillion support plan for Europe to combat the pandemic’s effects. In the EU’s non-financial business economy, SME’s with fewer than 50 employees dominate, making up 99% of all businesses. SMEs demonstrated their resilience by adding $3.5 trillion in value at the height of the pandemic

The Absa Purchasing Managers Index (PMI) increased from 52.6 points in November to 53.1 points in December. The overall picture is more complex, despite the apparent growth. The South African Central Bank stated in September last year that they expected the economy to grow by 1.4% in 2023.

Yoshimasa Hayashi has departed for a trip to South America to develop closer ties with Mexico, Ecuador, Brazil, and Argentina. The political crises in North Korea and Ukraine and a free and open Indo-Pacific will be discussed by Kishida and Biden. The top diplomat in Tokyo will address the common problems that Latin America faces and that the international community must solve.

The GDP of South Asia is anticipated to increase by 6.5% in 2022 and 6.3% in 2023. According to the IMF, India, Bangladesh, and the Maldives will be among the world’s fastest-growing economies in 2022 and 2023. Shaktikanta Das said that the common electricity market for Bangladesh, Bhutan, India, and Nepal may result in capital cost savings of $17 billion.

New Zealand is a popular holiday spot for about 36 million Chinese citizens. In the year ending March 2022, spending by foreign visitors climbed by 30.6%, and New Zealand anticipates additional growth in 2023. Stuart Nash said that 145,032 individuals were employed directly by tourism in the year up to March 2022, an increase of 3,615 year-on-year.

Industry Insights

The goal of the global manufacturing community is to better understand how different industry sectors are integrating advanced manufacturing principles into their digital transformation initiatives. Semiconductors, electronics, and pharmaceuticals will be the top three most developed industry sectors in 2022. Online shopping’s unmatched expansion has inspired the sector to modernize and improve its practices.

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