QNB Group has published its India Economic Insight 2014. The report examined recent developments and the outlook for the Indian economy and the potentially positive impact of the Premier Narendra Modi administration’s reform agenda.
According to the report, the implementation of Modi’s reform agenda is expected to unleash India’s growth potential; real GDP growth is forecast to accelerate to 6.3 percent in 2015/16 and 6.8 percent in 2016/17 as reforms start to pay dividends
The Modi administration has identified a number of priority areas for reforms including phasing out food and energy subsidies; easing land acquisition laws; reviving the power sector; introducing a uniform federal sales tax and reforming the labor market.
The majority of the reforms are projected to be implemented during the 2015/16 budget, thus starting to pay dividends over the next two years by increasing investments in the economy.
CPI inflation is forecast to reach the target set by the Reserve Bank of India (RBI) of 6.0 percent by January 2016 on continued tight monetary policy and favorable external conditions.
Labor market reforms are expected to reduce inflation by increasing labor force participation and lowering wage inflationary pressures.
Falling international oil prices and a good monsoon season are likely to moderate energy and food price inflation (comprising half of the CPI basket) in the short term.
The current account deficit is projected to decline to 1.1 percent of GDP by 2016/17 on further rupee depreciation and tighter fiscal policy.
The implementation of reforms is expected to attract additional foreign investments, implying that the financial account is likely to enjoy a healthy surplus.
The accumulation of international reserves is projected to rise to 7.9 months of import cover by end-March 2017, supported by smaller current account deficits and larger net capital inflows.
Double-digit growth in assets, loans and deposits is expected to continue at least until 2016/17, reflecting further banking penetration, higher economic activity and reduced corporate deleveraging.
Lending growth is expected to rebound and NPLs to fall in 2016/17 as structural reforms begin to materialize and banks’ balance sheets are cleaned up
Deposit are expected to continue growing robustly, despite the slowdown in inflation driven by a high savings rate and the government’s financial inclusion initiative
Other recent QNB Economic Insight reports include China, Indonesia, Jordan, Kingdom of Saudi Arabia, Kuwait, Oman, Qatar and UAE are available on the QNB Group website.
QNB Group operates in more than 26 countries in Asia, Europe, the Middle East and North Africa and its economic reports leverage its knowledge of these markets to provided added value for its clients and counterparties.
India labor market reforms likely to reduce inflation
India labor market reforms likely to reduce inflation
Saudi Arabia sees 21% jump in mining sector licenses since 2016
- The growth in the Kingdom’s mining sector licenses aligns closely with Saudi Arabia’s Vision 2030 objectives, launched in 2016
RIYADH: Saudi Arabia’s mining sector has shown sustained growth, with the number of mining licenses increasing from 1,985 in 2016 to 2,401 by the end of 2024, representing cumulative growth of 21 percent, according to the 2024 mineral wealth statistics from the General Authority for Statistics.
The data highlights a steady upward trend in recent years. Licenses rose to 2,100 in 2021, marking a 6 percent increase from the previous year.
The upward trajectory continued with 2,272 licenses in 2022, 2,365 in 2023, and 2,401 in 2024, reflecting expanding exploration and investment activity across the Kingdom’s mining sector. Building material quarries accounted for the largest share of mining permits, climbing from 1,267 licenses in 2021 to 1,481 by 2024.
Exploration licenses also recorded consistent growth, supporting the Kingdom’s broader push to develop its mineral resources.
Other categories of mining activity saw significant expansion, including 2,554 exploration licenses, 744 exploitation licenses, 151 reconnaissance licenses, and 83 surplus mineral ore licenses issued during the same period.
The growth in the Kingdom’s mining sector licenses aligns closely with Saudi Arabia’s Vision 2030 objectives, launched in 2016, which aim to diversify national income sources and strengthen non-oil sectors.
