Tag Archives: growth

Stuck in the middle? Indebted nations plot path to growth amid global trade upheaval

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The High-Level Conference of Middle-Income Countries (MICs), held on 28 and 29 April, was attended by senior representatives from 24 MICs, many of which are highly indebted, leaving them little room for spending on developing their economies.

Since 2000, only 27 countries transitioned from middle income to high-income status, and many have experienced reversals back to middle-income level: 11 nations switched back and forth at least once before reaching their current high-income status.

“The transition of middle-income countries to high-income status while meeting sustainable development ambitions calls for the bolstering of financing for development,” said Armida Salsiah Alisjahbana, Executive Secretary of the UN Economic and Social Commission for Asia and the Pacific (ESCAP) at the opening of the event. “This calls for domestic policy reforms aimed at expanding fiscal space, maintaining debt sustainability and channeling resources towards productive investments.”

The Makati Declaration on Middle-Income Countries calls for the UN to support MICs in accessing development financing, including via innovative financing mechanisms, and to provide support in a number of areas, ranging from programs and initiatives to mitigate and adapt to the climate crisis to digital transformation and making countries more resilient to global shocks (see full list of measures below).

Delegates at the High-Level Conference of Middle-Income Countries (April 2025)

Delegates at the High-Level Conference of Middle-Income Countries (April 2025)

“We recognize that middle-income countries experience frequent growth slowdowns, and if left unaddressed, this loss of economic dynamism can cause countries to get stuck in what is referred to as the “middle-income trap,” the Declaration states. “We stress that middle-income countries continue to face specific challenges related to, inter alia, high levels of inequalities, low growth, persistent poverty, unemployment, loss of biodiversity, the adverse effects of disaster risks and climate change, reliance on primary commodity exports, high levels of external debt and the volatility of exchange rates and capital flows, and digital divide.”

MICs will strengthen cooperation among themselves and offer increasing resources under technical cooperation between countries in the global South, which could become particularly important given the recent reduction in development support from traditional donors of the global North.

“We are re-moulding traditional development partnerships as more MICs, including the Philippines, increase resources for South-South and technical cooperation,” said Enrique Manalo, Secretary for Foreign Affairs of the Philippines at the event. “This is a trend that, if scaled up, could potentially result in game-changing dividends for the global development system.”

The Like-Minded Group of MICs are “as champions of multilateralism,” he added. “Carving a steady path for all middle-income countries behooves us to support strongly an international rules-based order underpinned by equity and justice.”

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India Expands 10 Plastic Parks With 50% Grant to Boost Polymer Sector

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India is accelerating the development of its polymer-based industrial ecosystem through the expansion of Plastic Parks, aimed at strengthening domestic plastic manufacturing, attracting investment, and promoting sustainable practices. The initiative, overseen by the Department of Chemicals and Petrochemicals, is being implemented under the New Scheme of Petrochemicals.

As part of the scheme, the government supports the creation of industrial clusters—termed Plastic Parks—by providing up to 50% of the project cost as grant-in-aid, with a maximum cap of ₹40 crore per project. These parks are designed to offer state-of-the-art infrastructure and shared facilities to consolidate the capacities of the downstream plastic processing industry.

So far, 10 Plastic Parks have been approved across various states including Madhya Pradesh, Odisha, Assam, Tamil Nadu, Jharkhand, Uttarakhand, Chhattisgarh, Karnataka, and Uttar Pradesh. Parks in Gorakhpur (UP) and Ganjimutt (Karnataka) were the latest to be greenlit in 2022. These hubs are not only intended to drive production and exports but also play a significant role in managing plastic waste through built-in recycling and waste treatment facilities.

According to government data, more than ₹258 crore has been released for Plastic Parks since 2013, with significant investment drawn to projects in states such as Tamil Nadu and Madhya Pradesh. The parks are managed by Special Purpose Vehicles (SPVs) set up by state governments, who also facilitate private sector participation through incentives and awareness programs.

The move aligns with India’s growing footprint in the global plastic trade. The country ranked 12th globally in plastic exports in 2022, up from 8.2 million thousand USD in 2014 to 27 million thousand USD, according to World Bank estimates.

In tandem with industrial expansion, the government is placing a strong emphasis on environmental sustainability. Plastic Parks are equipped with recycling sheds, effluent treatment plants, and hazardous waste management systems. The initiative is supported by Extended Producer Responsibility (EPR) regulations and bans on specific single-use plastics.

To support innovation, the Department has also established 13 Centres of Excellence (CoEs) at leading research institutions such as IIT Delhi, IIT Guwahati, and CIPET Bhubaneswar. These CoEs focus on sustainable polymer research, bio-engineered materials, and advanced polymer applications.

Additionally, the Central Institute of Petrochemical Engineering and Technology (CIPET) is offering a range of training programs to equip the workforce with the skills needed in the evolving plastics sector.

With continued focus on sustainability, innovation, and global competitiveness, the Plastic Parks initiative is poised to play a pivotal role in India’s ambition to become a major global hub for polymer production and environmentally responsible plastic processing.

India to Remain World’s Fastest-Growing Economy in 2025-26: RBI Bulletin

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India’s economic momentum is expected to strengthen in the second half of 2024-25 and continue into 2025-26, according to the latest RBI monthly bulletin. The country remains poised to maintain its status as the fastest-growing major economy, with GDP growth projections of 6.5% (IMF) and 6.7% (World Bank) for 2025-26.

The Union Budget 2025-26 is seen as a balanced approach toward fiscal consolidation and growth, emphasizing capital expenditure and measures to boost household incomes and consumption. The effective capital expenditure-to-GDP ratio is expected to rise to 4.3% in 2025-26 from 4.1% in 2024-25.

Retail inflation eased to a five-month low of 4.3% in January, largely due to declining vegetable prices. Key economic indicators signal a recovery, with improvements in industrial activity, rising tractor sales, increased fuel consumption, and sustained growth in air passenger traffic.

Rural demand remains strong, driven by higher farm incomes, as FMCG sales in rural areas surged 9.9% in Q3 2024-25, compared to 5.7% in Q2. Urban demand also showed improvement, with Q3 growth nearly doubling to 5% from 2.6% in the previous quarter.

Private sector investment intentions remained stable, with project costs sanctioned by banks/financial institutions nearing ₹1 lakh crore in Q3. External commercial borrowings and IPOs for capital expenditure purposes also saw an uptick.

Global uncertainties, including geopolitical tensions and restrictive trade policies, have influenced domestic equity markets, leading to selling pressure from foreign portfolio investors. The Indian rupee, like other emerging market currencies, has depreciated against a strengthening US dollar. However, India’s strong macroeconomic fundamentals and external sector stability have helped it navigate global economic headwinds, the bulletin noted.

India Inc Sees Soaring Growth Trajectory in Modi 3.0 Era: Assocham

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India Inc expressed optimism on Monday, asserting that Prime Minister Narendra Modi’s leadership will propel the nation to unprecedented heights, maintaining its position as the world’s fastest-growing major economy, according to Assocham.

The apex industry chamber lauded PM Modi’s third consecutive term, foreseeing a trajectory of continued progress and enhanced global standing fueled by inclusive and sustainable economic expansion in the years ahead.

Deepak Sood, Secretary General of Assocham, emphasized the industry’s confidence in bold reforms transcending economic domains, encompassing governance, quality of life, and capitalizing on the potential of India’s youthful demographic.

“We have been attentive to your resolute messages advocating transformative steps to elevate India’s developmental trajectory,” remarked Sood in a statement.

Sanjay Nayar, President of Assocham, highlighted PM Modi’s commitment to positioning India as the world’s third-largest economy, a goal that aligns with its current ranking as the fifth-largest global economy.

“The entire industrial, commercial, and financial landscape is invigorated with the dawn of a new era,” noted Nayar.

The industry body pledged unwavering support to the government’s nation-building efforts, emphasizing collaboration between industry and government, harnessing the energy of India’s youthful populace, and driving innovation and technology in the next phase of development.

“We eagerly await the forthcoming regular budget, which should delineate the policy roadmap and priorities of the NDA government,” added Nayar.

Toxins in old toys can disrupt growth in children, an obstacle for circular economy

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Letting children play with hand-me-down plastic toys could constitute a health risk. When researchers at the University of Gothenburg tested a large number of old toys and dress-up items made of plastic, 84 per cent of the items were found to contain toxins that can disrupt growth and development and reproductive capacities in children. These toxins are an obstacle for the circular economy in the future involving reuse and recycling, the researchers explain.

The current use-and-discard behaviour is wasteful with resources and a drain on the Earth’s finite resources. In 2021, the European Parliament adopted a Circular Economy Action Plan. It encourages the re-use, repair and recycling of products and materials. But the question is whether all products are good to reuse again?

Researchers from the University of Gothenburg have recently published an article in the Journal of Hazardous Materials Advances which shows that old toys and dress-up items may contain toxic chemicals that can cause cancer, damage DNA or disrupt the future reproductive capacities of children.

plastic toys/Photo: en.wikipedia.org

Toxic chemicals in most old toys

The hazardous chemicals that were discovered included phthalates and short chain chlorinated paraffins used as plasticizers and flame retardants in toys.

Professor Bethanie Carney Almroth at the University of Gothenburg conducts research on the environmental impact of plastics and plastic-related chemicals, and has led the research study conducted at the interdisciplinary Centre for Future Chemical Risk Assessment and Management Strategies (FRAM). For the study, researchers selected 157 different toys, new and old, and measured their chemical content.

The study showed that most of the older toys and items (84 per cent) contained quantities of chemicals that exceed current legal limits. A total of 30 per cent of the newer toys and items also exceeded the legal limits. By far however, the older toys were significantly worse.

“The concentrations of toxic substances were significantly higher in the older items. For example, many of the old balls were found to have concentrations of phthalates totalling more than 40 per cent of the toy’s weight, which is 400 times over the legal limit,” says Bethanie Carney Almroth.

Many of the older toys contained toxins.

 

Toxins an obstacle to a circular economy

EU legislation on the chemical content of toys, known as the Toy Safety Directive, regulates the permissible quantities of a number of chemical substances found in toys in an attempt to protect the health and safety of children. At present, the permissible limit values for new toys under the Toy Safety Directive are 0.1 per cent by weight for phthalates and 0.15 per cent by weight for short chain chlorinated paraffins.

“The study indicates that reuse and recycling is not always automatically a good thing. The transition to a more circular economy requires bans and other policy measures that get rid of hazardous chemicals from plastic and other materials. Although the Toy Safety Directive has been crucial in reducing the incidence of hazardous chemicals in toys, it has only been applicable to new toys, not old ones,” explains Daniel Slunge, Environmental Economist at the University of Gothenburg.

Despite Demonetisation, December Foreign Tourists Growth Stands at 13.6%

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Indian tourism sector has seen 13.6% growth in Foreign Tourist Arrivals (FTAs) in December 2016 over the same period in 2015 and US accounts for highest share of tourist arrivals followed by Bangladesh and UK in December 2016, said the Ministry of Tourism in a statement.

The tourism sector earned Rs.16,805 crore in Foreign Exchange in December 2016, which shows that the sector recorded growth despite the claims that demonetisation had affected the overall foreign tourist arrivals.

Ministry of Tourism compiles monthly estimates of Foreign Tourist Arrivals (FTAs) on the basis of Nationality-wise, Port-wise data received from Bureau of Immigration (BOI) and Foreign Exchange Earnings (FEEs) from tourism on the basis of data available from Reserve Bank of India. The following are the important highlights regarding FTAs and FEEs from tourism during the month of December, 2016.

Foreign Tourist Arrivals (FTAs) in December, 2016 were 10.37 lakh as compared to 9.13 lakh during the month of December, 2015 and 8.85 lakh in December, 2014. There has been a growth of 13.6% in December, 2016 over December, 2015.

Overall, foreign tourist arrivals for the calendar year 2016 were 88.90 lakh with a growth of 10.7% as compared to 80.27 lakh with a growth of 4.5% in January- December, 2015 over January- December, 2014.

The Percentage share of Foreign Tourist Arrivals (FTAs) in India during December, 2016 among the top 15 source countries was highest from USA (18.33%) followed by , Bangladesh (13.02%), UK (11.71%), Australia (5.43%), Russian Fed (4.18%),Canada (4.13%), Malaysia (3.38%), Germany (2.80%), China (2.53%), Sri Lanka (2.25%), Singapore (2.12%), France (2.01%), Japan (1.79%), Afghanistan (1.38%) and Nepal (1.34%).

The Percentage share of Foreign Tourist Arrivals (FTAs) in India during December 2016 among the top 15 ports was highest at Delhi Airport (27.77%) followed by Mumbai Airport (19.80%), Haridaspur Land check post (7.16%), Chennai Airport (7.13%), Goa Airport (5.64%), Bengaluru Airport (5.43%), Kolkata Airport (4.31%), Cochin Airport (4.17%), Hyderabad Airport (3.42%), Ahmadabad Airport (3.11%), Trivandrum Airport (1.81%), Gede Rail (1.59%), Trichy Airport (1.59%), Amritsar Airport (1.06%), and Gaya Airport (0.84%).

Foreign Exchange Earnings (FEEs) from Tourism during the month of December, 2016 were Rs.16,805 crore as compared to Rs. 14,152 crore in December, 2015 and Rs.12,988 crore in December, 2014. The growth rate in FEEs in rupee terms during December, 2016 over December, 2015 was 18.7% as compared to the growth of 9.0% in December, 2015 over December, 2014.

In the entire year 2016, foreign exchange earnings from tourism in rupee terms were Rs. 1,55,650 crore with a growth of 15.1% as compared to Rs. 1,35,193 crore with a growth of 9.6% during January- December, 2015 over January- December, 2014.

The figures in US$ terms during the month of December, 2016 were US$ 2.475 billion as compared to FEEs of US$ 2.126 billion during the month of December, 2015 and US$ 2.069 billion in December, 2014. and the growth rate in December, 2016 over December, 2015 was 16.4% compared to the growth of 2.8% in December, 2015 over December, 2014.

The earnings from tourism in US$ terms during January- December, 2016 were US$ 23.146 billion with a growth of 9.8% as compared to the US$ 21.071 billion with a growth 4.1% during January- December, 2015 over January- December, 2014, said the ministry in a statement.