Weak global demand in 2023 to moderately impact exports: GTRI

Weak global demand in 2023 to moderately impact exports: GTRI

• Weak global demand and recession in major economies would have a moderate effect on India's economy and exports in 2023. Additionally, the nation should work to lower its energy import expenses in order to boost its current account, according to economic think tank Global Trade Research Initiative (GTRI).
• According to GTRI, India would pay USD 270 billion in 2022 for the import of crude oil and coal, or around 40 per cent of the overall import cost for goods.
• It further stated that India needs to restart local oil field exploration and boost coal mine production. Any growth will significantly reduce the cost of energy imports and enhance the current account.
• When discussing the prediction for 2023, it stated that weak global demand and recession in major nations will have a slight impact on the Indian economy and exports. It should try to reduce the cost of energy imports in order to improve its current account.

India said to eye $17 bn cut in food, fertilizer subsidy spends

• India aims to cut spending on food and fertiliser subsidies to ₹3.7 trillion ($44.6 billion) in the fiscal year starting April, a 26% cut from this year, two government officials said, to rein in a fiscal deficit that ballooned during the COVID-19 pandemic.
• Food and fertiliser subsidies alone account for about one-eighth of India's total budget spending of ₹39.45 trillion this fiscal year, but reductions in food subsidies in particular may prove politically sensitive with elections looming on the horizon.
• The government expects to budget about ₹2.3 trillion for food subsidies in the coming fiscal year, compared with ₹2.7 trillion for the current year to March 31.
• The government is eager to tame its fiscal deficit, which is targeted at 6.4% of GDP for the current fiscal year.
• The reduction in fertiliser subsidies is also driven by expectations of lower crude oil prices and the government's revised gas procurement policy for fertiliser companies, which came into effect earlier this month.