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India was the eleventh-largest economy ten years ago, while the UK was the fifth-largest. Based on data on GDP provided by the International Monetary Fund. India surpass the UK in dollar terms annually this year, only behind the US, China, Japan, and Germany. In the final three months of 2021, India surpassed the UK to become the fifth-largest economy.
The IMF’s World Economic Outlook database shows India overtaking the U.K. in dollar terms on an annual basis this year with a GDP of $3.53 trillion compared to the U.K.’s $3.38 trillion.
According to adjusted figures and the dollar exchange rate on the last day of the relevant quarter, the Indian economy was worth $854.7 billion in nominal cash terms in the three months ending in March. The United Kingdom was $816 billion on the same basis. a country with the highest inflation rate in four decades and growing recession risk, which the Bank of England predicts might persist well into 2024.
According to reports, the UK's ranking decline is the result of the nation's rising cost of living. For the first time since 1982, the nation saw double-digit consumer price inflation last month. With the pound losing 8% versus the rupee this year, sterling has underperformed the dollar relative to the Indian currency. In the second quarter, UK GDP increased by just 1% in real terms; after accounting for inflation, it decreased by 0.1%.
Indian equities have recently had a global-beating recovery, moving their weighting into second place in the MSCI Emerging Markets Index, only behind China's.
official figures revealed that India's gross domestic product (GDP) increased 13.5% in the June 2022 quarter (Q1FY23), as opposed to the 20.1% growth recorded in the first quarter of 2021–2022. According to an official statement, "Real GDP or gross domestic product (GDP) is anticipated to hit a level of Rs 36.85 lakh crore in Q1 2022-23, as against Rs 32.46 lakh crore in Q1 2021-22, indicating a rise of 13.5 percent as opposed to 20.1 percent in Q1 2021-22."According to National Statistical Office (NSO) figures, the country's gross value added (GVA), which is GDP less net product taxes and shows supply growth, increased by 12.7% between April and June 2022.
Reduced corporate taxes, the production-linked incentive (PLI) program, and India as a potential supply chain beneficiary all helped to stimulate and maintain domestic demand, particularly for investments.
India's GDP grew by 13.5% in the first quarter of FY23. India's GDP is probably going to develop the quickest in the current fiscal year at this rate. Nirmala Sitharaman, the Union Finance Minister, has disclosed that India's Gross Domestic Product (GDP) growth will continue to grow at 7.4% in FY 2022–23 and in FY24 as well.
However, economists worry that the prospect of a global recession and rising interest rates might stifle growth in the ensuing quarters.
A variable monsoon is also expected to have an impact on rural demand and agricultural growth. Economists are also said to be concerned about the manufacturing sector's decreasing growth rate of 4.8% and the fact that imports are outpacing exports.
India is expected to benefit in the coming days as China's aspirations for fresh investments slow down.
Despite its great economic progress, the country nonetheless has its share of obstacles. According to the World Bank, access to development and new opportunities has been unequal and varies by area.
Furthermore, India is home to 25% of the world's poor. According to the UN, just 39% of its rural populations have access to sanitary facilities, and nearly half of the population still defecates in the open.
Although India overtook the UK there is a disparity in per capita income between the two countries caused by the size of India's population India has 1.3 billion inhabitants, which is three times the combined populations of the UK, France, Italy, and Brazil, vs the UK which has a population of 068 bn. Thus, our per capita GDP was $2,500 as opposed to $47,000. We still have much to go.
The semiconductor industry was put into the unexpected limelight in 2021 when chip shortages initially forced the shutdown of vehicle production lines. The focus grew when certain high-tech and consumer electronics businesses started to report chip shortages or expressed worries about supply chains.
Everyone can clearly see that we live in a world dominated by semiconductors, the small chips that power several automotive features, including blind-spot detection, seat adjustment, and interior Illumination.
Relations between Washington and Beijing are strained as a result of the rising tensions brought on by the visit of Nancy Pelosi, the speaker of the US House of Representatives.
Some scholars claim that if China conquers Taiwan, the former will gain more independence to expand its strength throughout the western Pacific.
Furthermore, China may put the American military outposts in jeopardy if this takeover occurs, especially those on the island regions.
China, however, disputes any bad intentions and insists that its goals are wholly benign. But President Xi Jinping of China declared that "reunification with Taiwan must be realized" and that if necessary, the force will be used to achieve this goal.
Simply put, the dragon views the island country as a renegade province that the latter seeks to subdue.
Washington has a history of strategic ambiguity, to the point where it might use force to intervene if China invaded Taiwan. The One-China policy, which recognizes only one Chinese government, based in Beijing, and has formal links with Beijing rather than Taipei, is adhered to by this country in its official capacity. It has, however, also promised to give Taiwan protective armaments and emphasized that any invasion by China would be of great concern.
A significant portion of Taiwan's IT sector is made up of the semiconductor industry, which includes IC manufacture, design, and packing. Taiwan plays a significant role in the semiconductor industry's worldwide supply chain.
Additionally, its contract manufacturers represented more than 60% of the entire income generated by semiconductors worldwide in 2021.
Around 20% of the world's semiconductor market, or US$115 billion, was accounted for by Taiwan. Taiwanese businesses control 50% of the global market in some industries, such as foundry operations, with Taiwan Semiconductor Manufacturing Company (TSMC) dominating the foundry industry.
Taiwan manufactures essential semiconductors and electronic equipment and controls 10% of the world's shipping container capacity, holding a crucial role in the global supply chain.
Technology companies from Taiwan control the majority of the world's capacity for producing semiconductors, including cutting-edge and effective chips. The largest contract chip manufacturer in the world, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), is now investing in a new $12 billion facility in Arizona.
India has its own limitations, therefore it won't participate more politically in Taiwan unless the situation is dire. Since the beginning, India has adhered to a "One China" policy; yet, India must recognize that Taiwan is the main center of the American Indo-Pacific strategy. In the bigger picture of limiting China, it does play a significant supporting role.
Our links now extend beyond commerce to include educational possibilities for Indians who wish to learn Chinese and follow Chinese trends.
The COVID-19 epidemic and China's zero-COVID policy have already caused unprecedented amounts of disruption in supply chains throughout the world since 2020.
Due to trade and supply route restrictions brought on by the Russia-Ukraine war, shipping prices have increased.
A blockage or delay in semiconductor chip exports might be one of the numerous effects of a confrontation between China and Taiwan. This would have an impact on several global businesses, including manufacturing, internet communications technology (ICT), and research and development.
The Taiwan Strait is one of the busiest shipping lanes in the world, helping the transport of technology and natural gas supplies to international markets.
A butterfly effect might result in hyperinflation, job losses when factories stop operating, and recessionary economies.
State Bank of India's net profit in the first quarter of the current financial year on a standalone basis has declined by 7 percent.
State Bank of India (SBI) reported a net profit of Rs 6,068.08 crore compared with Rs 6,504 crore in the same quarter last year. Due to Mark to Market (MTM) losses on its investment book, the bank's operating profit decreased by 33% to Rs 12,753 crore from Rs 18,975 crore in the April-June quarter of the previous fiscal.
The bank's interest income increased to Rs 72,676 crore from Rs 65,564 crore previously. Net interest income grew from Rs 27,638 crore in the first quarter of the previous fiscal to Rs 31,196 crore which is 12.87 percent. The net interest margin increased from 3.15 to 3.23 percent.
Core operating profit jumped by 14.39 percent year over year, from Rs 16,873 crore in Q1 FY22 to Rs 19,302 crore in Q1 FY23, when trading income and MTM were excluded.
The bank's gross (NPA) ratio increased from 5.32 percent at June's end of the previous year to 3.91 percent today. Similar to this, net NPAs decreased from 1.7% in June 2021 to 1.02 in June 2022. Domestic NIM for Q1FY23 climbed by 8 bps YoY to 3.23 percent. While the net NPA ratio decreased by 77 bps YoY to 1.00 percent, the gross NPA ratio decreased by 141 bps YoY to 3.91 percent.
The Provision Coverage Ratio (PCR), which was 75.05 percent, increased by 719 bps YoY. A 90.14 percent PCR (Inclusive AUCA) was reported. The slippage ratio for the reviewed quarter was 1.38 percent, an improvement of 109 bps year over year. Corporate loan volume increased by 10.57%, while SME and agricultural loans also saw year-over-year increases of 10.01% and 9.82%, respectively.
Deposit increased by 8.73% to Rs. 40 lakh crore. As of June 30, the bank's CASA ratio dropped 64 basis points to 45.33 percent. Retail bank deposits are up 8.73% year over year. Credit Cost for Q1 FY23 was 0.61 percent, up 18 basis points year over year. At the end of the June quarter of 2022–23, the capital adequacy ratio (CAR) was 13.43%.
SBI added that 38% of retail asset accounts and 65% of savings bank accounts were opened online using YONO. The proportion of alternate channels in all transactions climbed from 95.1% in the first quarter of FY22 to 96.6 in the first quarter of FY23.
Due to Mark to Market (MTM) losses on its investment book, the bank's operating profit decreased by 33% to Rs 12,753 crore from Rs 18,975 crore in the April-June quarter of the previous fiscal.
The bank's Return on Asset and Return on Equity, which was 0.48 percent and 10.09 percent, respectively, suffered from the MTM hit.
Non-interest income fell significantly. The sharp reduction in SBI's non-interest income was a significant factor in the company's profit decline. In the June quarter, SBI's non-interest income was barely Rs 2,312 crore, compared to Rs 11,802 crore in the same quarter of the prior fiscal year.
Talking about the stock of SBI, the company's stock has given a return of 13 percent to the investors in YTD time. At the same time, it has given a return of 22.20 percent in the last year and has given a return of 90.02 percent to the investors in the last 5 years.
Promoter ownership of SBI was 57.57 percent as of June 2022, with no shares pledged.
Dividends of Rs 07.10 per share have been issued by SBI for the fiscal year that ended in March 2022.
SBI's share price increased by 84.45, or around 19.38 percent, during the course of the past year, from Rs 435.7 to Rs 520.1.
At 43,884.2, the S&P BSE BANKEX Index is now trading (up 0.77 percent). It increased by 3,153.0 points (up 7.74 percent) in the past year, from Rs 40,731.3 to Rs 43,884.2.
The S&P BSE SENSEX has increased 8.25% overall.
As we observe our nation's 75th Independence Day, let's review how freedom has changed through time.
For India's savings, a route to financial independence has been gradually carved out thanks to the efforts of governments, regulators, and financial institutions. This route capitalizes on the country's economic expansion using share markets, mutual funds, and other investment avenues that let investors reap from it.
Certain reasons have led to a rise in the importance of financial independence. Every middle-class individual should take into consideration this idea because it is no longer optional and almost a necessity.
To become financially free, one must plan ahead and handle their existing finances. It's crucial to organize your expenses and debts since doing so will allow you to start saving and stop depending on a set monthly salary.
The road to financial independence begins there. The sooner you start saving, the longer you save will eventually benefit you in long term. It makes no difference where you start, but it is more crucial that you begin making plans for the future.
Just as important as choosing a financial objective is understanding one's risk tolerance level. One may easily narrow down the most worthwhile investment possibilities if they are aware of their level of risk tolerance. Financial decisions may become murky if one is unable to identify their personal risk tolerance.
Most people will accumulate wealth more reliably by combining tiny sums of money with time and the power of compound interest.
Choosing a variety of investments that are geared toward attaining your goals and objectives at an investment risk level that you are comfortable with is the key to building an investment portfolio. The selection of a particular investment is the second most important component after asset allocation.
Regular and systematic investing is required if you want to get the desired outcomes. A powerful feature for goal planning is a systematic investment plan (SIP). You only need to choose one of the top and most suitable mutual fund programs to SIP into.
Searching for the best mutual funds for a systematic investment plan in India? Fulfill your financial goals now with Swastika.
Equity investments have rewarded investors by increasing their money in a fairly short amount of time when compared to other investment alternatives. By starting early, and making investments in the right stocks, one might strive to save enough money to achieve financial independence at a young age.
You must quit living in debt if you want to become financially independent. Make sure to minimize or settle your outstanding bills as soon as you can. Avoid taking out loans or using credit cards frequently to meet your immediate needs because doing so might harm your financial stability
The "4 percent rule" is a retirement rule of thumb that states that an investor can safely withdraw 4 percent, adjusted for inflation, from a balanced portfolio of stocks and bonds each year and be reasonably certain that the money will continue to grow and won't run out. This is how financially independent people who live off their portfolio income operate.
Having the right mindset is essential to achieve financial freedom. Making secure and wise investments is therefore essential to financial independence since it allows you to gradually increase your wealth. Investors who desire predictable capital growth, however, have had sleepless nights due to fluctuating stock indices and monetary policy changes. Fixed-income assets are therefore ideal for investors looking for guaranteed returns.
भू-राजनितिक तनाव बढ़ने के कारण सोने में सुरक्षित मांग बढ़ने लगी है। पिछले सप्ताह घरेलु वायदा सोना तेज़ रहा और भाव 52500 रुपये प्रति दस ग्राम के स्तरों को छू गए जबकि चांदी की कीमते सीमित दायरे में रहते हुए 58800 रुपये प्रति किलो के ऊपरी स्तरों को छू गए। धीमी होती हुई ग्लोबल अर्थव्यवस्था और अमेरिकी डॉलर इंडेक्स मे दबाव सोने और चांदी के भाव को सपोर्ट कर रहा है। डॉलर की नरमी के चलते औद्योगिक धातुओं के लिए पिछले सप्ताह अच्छा रहा लेकिन चीन और यूरोज़ोन के कमजोर मैन्युफैक्चरिंग आकड़ो से सुस्त मांग के संकेतो से सप्ताह के अंत तक इनमे दबाव बनता दिखा। हालांकि, डॉलर की तुलना में रूपया पिछले दो सप्ताह से मजबूत रहा है जिससे कीमती धातुओं की बढ़त सीमित रही। भारतीय रिज़र्व बैंक द्वारा भी शुक्रवार को ब्याज दरे 0.50 प्रतिशत बढ़ा दी गई है जिससे रूपया मजबूत हुआ है। जबकि कॉमेक्स वायदा में सोना 1800 डॉलर प्रति औंस के स्तरों को पार कर गए। दुनिया भर से निराशाजनक आर्थिक संकेतो की बढ़ती संख्या ने आने वाली मंदी पर चिंताओं को बढ़ा दिया है। हालांकि, अमेरिका से जारी होने वाले पैरोल के आंकड़े मजबूत दर्ज किये गए है जिससे ऊपरी स्तरों पर कीमती धातुओं के भाव में दबाव भी बना है। सेफ हैवन मांग बढ़ने के पीछे चीन और ताईवान के बीच बढ़ रहा तनाव है जिसमे मिलिट्री ड्रिलिंग में मिसाइल दागने के बाद सोने में तेज़ी देखने को मिली है।
कीमती धातुओं के भाव इस सप्ताह तेज़ी में रहने की सम्भावना है। अक्टूबर वायदा सोने की कीमतों में 51300 रुपये पर सपोर्ट है और 52500 रुपये पर प्रतिरोध है। सितम्बर वायदा चांदी में 55500 रुपये पर सपोर्ट और 59500 रुपये पर प्रतिरोध है।
सोने के भाव में लगातार तीसरे सप्ताह भी तेज़ी जारी रही वही प्रमुख अर्थव्यवस्थाओं के आंकड़े मजबूत रहने से चांदी में भी तेज़ी देखि गई। अमेरिकी डॉलर इंडेक्स पिछले सप्ताह 1.21 प्रतिशत टुटा जिसकी कमजोरी के चलते सोने और चांदी के भाव में तेज़ी बनी रही। लेकिन, वैश्विक आर्थिक आकड़ो में सुधार के साथ मुद्रास्फीति में भी गिरावट दर्ज की गई है जिससे कीमती धातुओं की तेज़ी में लगाम लगी है। मुद्रास्फीति घटने के बावजूद फेड सदस्यों द्वारा ब्याज दरे बढ़ाने की बात कही गई है जिससे सोने और चांदी में मुनाफा वसूली भी देखने को मिल रही है।
अमेरिकी मुद्रास्फीति आकड़ो के बाद उत्पादक मूल्य मुद्रास्फीति (पीपीआई) में भी अप्रत्याशित गिरावट दर्ज की गई है। मौद्रिक नीति पर अमेरिकी फेड का रुख अभी आक्रामक है। भारत में भी अमेरिकी फेड के साथ-साथ ब्याज दरों में वृद्धि हुई है और त्यौहार की मांग आने में थोड़ा समय बाकि रहने से सोने और चांदी की कीमते लम्बी अवधि के लिहाज से अभी सीमित दायरे में बनी हुई है जिससे इनमे ऊपरी स्तरों पर दबाव बनने की सम्भावना भी नज़र आती है।
अमेरिका, चीन और भारत में मुद्रास्फीति में कमी सोने की बढ़त को फीका कर सकती है लेकिन भूराजनीतिक मुद्दो से निचले स्तरों पर सपोर्ट भी मिलता रहेगा। इस सप्ताह अमेरिका से जारी होने वाले रिटेल सेल्स और एफओएमसी मीटिंग के मिनट्स सोने और चांदी के भाव के लिए महत्वपूर्ण रहेंगे।
कीमती धातुओं में इस सप्ताह ऊपरी स्तरों पर दबाव रहने की सम्भावना है। अक्टूबर वायदा सोने की कीमतों में 51700 रुपये पर सपोर्ट है और 53200 रुपये पर प्रतिरोध है। सितम्बर वायदा चांदी में 57300 रुपये पर सपोर्ट और 59700 रुपये पर प्रतिरोध है।
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