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Economic slowdown: Sitharaman calls for ‘proactive collective efforts’ by G-20

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Finance Minister Nirmala Sitharaman has called for “proactive collective efforts” by the G-20 group of the world’s top economies to deal with the current slowdown in the growth momentum of the global economy.

Addressing fellow ministers and central bank heads of the G-20 member countries, the minister attributed the slowdown to “prolonged inflation, supply chain disruption, volatility in energy markets and investor uncertainty”, according to a series of Twitter posts by the Ministry of Finance.

Sitharaman, who is in Washington DC for the Spring Meetings of the World Bank Group (which includes the International Monetary Fund), said G-20 “is well placed to catalyse international policy coordination to deal with macroeconomic consequences and called for proactive collective efforts towards protecting economies”, according to the Finance Ministry.

The 2022 April Spring Meetings are taking place amidst a significant slowdown in the global economy, whose recovery from the adverse effects of the Covid-19 pandemic was rudely halted by the Russian invasion of Ukraine and the economic upheaval it has caused.

The IMF estimates that the “global growth will slow down from an estimated 6.1 per cent in 2021 to 3.6 per cent in 2022 and 2023. These are 0.8 and 0.2 percentage points lower for 2022 and 2023 projections in the January World Economic Outlook Update. Beyond 2023, global growth is forecast to decline to about 3.3 per cent over the medium term. This projection is based on the assumption that the conflict will remain confined to Ukraine further sanctions on Russia exempt the energy sector (although the impact of European countries’ decisions to wean themselves off Russian energy and embargoes announced through March 31, 2022, are factored into the baseline), and the pandemic’s health and economic impacts abate over the course of 2022”.

India’s growth projections have also been cut by both the fund and the World Bank. The fund said India will grow by 8.2 per cent in 2022, down 0.8 percentage points from 9 per cent as projected in January, which in itself was down 0.5 percentage points form its previous projection. The World Bank has projected 8 per cent growth for the Indian economy in 2022 in a report released last week.

The Finance Minister is holding meetings on the sidelines of the World Bank Group events, with counterparts from around the world and corporate leaders.

Sitharaman and US commerce secretary Gina Raimondo discussed “ways to strengthen economic cooperation in the bilateral and global contexts”, the ministry said in a tweet. She also met counterparts from the Netherlands and Suriname.

The Finance Minister pitched India to the US semiconductor industry in a meeting with John Neuffer, president and CEO of the Semiconductor Industry Association. She informed Neuffer of the “initiatives & policies rolled out by the Government of India (GoI) to attract & support foreign investment in semiconductor industry, including development of sustainable semiconductor and display ecosystem with an outlay of $10 billion, in India”, the ministry said.

Neuffer was described as being “upbeat” about the initiatives taken by GoI to promote investment in Semiconductor ecosystem and appreciated India’s commitment to become a reliable player in the global supply chain.

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57 pc Indian office occupiers say AI not affecting leasing decisions

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New Delhi, Aug 27: Despite the growing weight of artificial intelligence (AI) in corporate strategy, 57 per cent of office occupiers in India said it has no material impact on their leasing decisions, a report said on Thursday.

The report from CBRE South Asia said about 93 per cent of over 200 occupiers surveyed are at some stage of AI implementation, but roughly 59 per cent remain in early or exploratory phases testing proofs‑of‑concept and mapping systemic changes before committing capital or restructuring physical assets.

AI is at an advanced or scaled adoption stage for a third of the cohort, driving immediate changes in how talent is deployed and physical workspaces are utilised, the report said.

While a majority do not expect immediate changes to leasing strategies, occupiers are likely to prioritise high‑quality workplaces that support talent attraction, innovation and advanced technology needs, the report added.

A large proportion of organisations are likely to plan their real estate decisions based on their workforce dynamics and business impact of their AI strategies.

Meanwhile, a section of occupiers anticipated AI creating new opportunities for workforce growth as organisations scale emerging capabilities and technology-led functions.

“While AI adoption is becoming increasingly widespread, business maturity and the pace of deployment will ultimately determine its impact on workforce requirements and, consequently, future leasing decisions,” said Anshuman Magazine, Chairman and CEO-India, South-East Asia, Middle East and Africa, CBRE.

“As organisations continue to transition from experimentation to scaled implementation, the implications for headcount, workplace strategies, and space demand are likely to evolve over time,” he added,

Ram Chandnani, Managing Director, Leasing Services, India, CBRE said that the flight-to-quality trend remains firmly intact, with premium workplaces continuing to play a critical role in attracting and retaining talent.

“In effect, AI is influencing the type of space occupiers seek well before it alters the quantum of space they require,” he added.

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CM Patel returns from US-Canada tour; says investors keen to invest in Gujarat

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Ahmedabad, Aug 27: Gujarat Chief Minister Bhupendra Patel returned to Ahmedabad on Thursday after completing a nine-day visit to the United States and Canada aimed at attracting global investment and promoting the 2027 Vibrant Gujarat Global Summit, saying companies across key sectors had shown interest in investing in the state.

Patel was welcomed at Ahmedabad airport by Deputy Chief Minister Harsh Sanghavi and senior state government officials following his visit from August 17 to 26.

The overseas outreach focussed on investors, technology leaders, entrepreneurs and the Gujarati diaspora in San Francisco, Washington, DC, New York and Toronto.

Speaking to reporters after his return, Patel said the state government’s objective was to ensure that a larger share of investment coming into India was directed towards Gujarat.

“We have witnessed the impact of Prime Minister Narendra Modi’s global relationships and the trust he enjoys during this visit. Because of the complete trust people have in the Prime Minister, investors are keen to make greater investments across various sectors,” he said.

Patel said the delegation had held meetings with major companies and investors in semiconductors, artificial intelligence, data centres and manufacturing, as well as financial companies in connection with GIFT City.

He said the response to the meetings had been encouraging. “Many companies are enthusiastic about investing in Gujarat. Very good investment will come to Gujarat,” he said.

The visit was undertaken as part of Gujarat’s preparations for the 11th Vibrant Gujarat Global Summit, which is scheduled to be held from January 10 to 12, 2027.

During the overseas programme, global investors, technology leaders and innovators were invited to participate in investment, collaboration and partnership opportunities at the summit.

The delegation also engaged with members of the Gujarati diaspora. In Canada, Patel met entrepreneurs and business representatives and invited the community to invest in Gujarat and participate in the forthcoming summit.

The delegation was led by Patel and Chief Secretary M.K. Das. It included Additional Chief Secretary of Finance Department, T. Natarajan; Additional Chief Secretary of Industries and Mines Department, Mamta Verma; Principal Secretary to the Chief Minister Sanjeev Kumar; and Additional Principal Secretary to the Chief Minister Dr Vikrant Pandey.

Representatives of Gujarat’s industrial and business community also accompanied the delegation.

The meetings were held with investors, technology leaders, young entrepreneurs, innovators and members of the Gujarati diaspora across the three US cities and Toronto.

Discussions covered investment opportunities and partnerships in emerging technologies and industrial sectors, with the state also seeking participation from international companies in the 2027 summit.

After the delegation returned to Gujarat, senior officials gathered at Ahmedabad airport to welcome Patel, Das and other members of the delegation.

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Sensex, Nifty post mild uptick over easing crude prices

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Mumbai, Aug 27: The Indian equity markets posted a mild uptick early on Thursday as oil prices edged down on expectations of Iran-Oman talks over opening the Strait of Hormuz.

As of 9.18 am, Sensex added 81 points, or 0.10 per cent, to reach 77,553 and Nifty gained 37 points, or 0.16 per cent, to reach 24,425.

Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 added 0.31 per cent, and the Nifty Smallcap 100 gained 0.24 per cent.

All sectoral indices on NSE traded in green except Nifty Media. Nifty IT was the top gainer up 0.42 per cent.

Brent crude eased 0.6 per cent to $87.30 a barrel after Iran informed about discussions with Oman to finalise the Strait of Hormuz-related agreement, easing concerns over prolonged oil supply disruptions in West Asia.

“The near-term bias remains cautious and range-bound, with mixed Asian markets and subdued global cues keeping investors watchful. The focus remains on inflation, bond yields and ongoing geopolitical developments, while easing crude prices could provide some support to Indian equities,” an analyst said.

The immediate support for Nifty is placed at 24,000–24,050 level. On the upside, the 24,350–24,400 zone remains a key hurdle for the bulls, market participants said.

In Asian markets, China’s Shanghai index gained 0.63 per cent and Shenzhen added 1.17 per cent. Japan’s Nikkei lost 0.15 per cent, and Hong Kong’s Hang Seng Index eased 0.47 per cent. South Korea’s Kospi added 2.01 per cent.

Overnight, Wall Street ended mixed-to-lower as investors assessed Nvidia’s earnings and renewed concerns over US inflation, while early Asian markets are trading mostly higher.

The US markets ended in red overnight as Nasdaq lost 0.08 per cent. The S&P 500 shed 0.02 per cent, and the Dow Jones dipped 0.21 per cent.

On August 26, foreign institutional investors (FIIs) net bought equities worth Rs 502 crore, while domestic institutional investors (DIIs) bought equities worth Rs 6,425 crore.

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