Page 25 - FDMAsia SepOct 2024

FOCUS 23
www.fdmasia.com | FDM ASIA SEP/OCT 2024

cooperation action plan for the development of forest products. at 6.5 percent next year, is improvement in private investment.
The cooperation action plan covers areas related to Policy continuity, focused on boosting infrastructure investment
trade facilitation, market access and efforts to increase the and encouraging private investments with tax incentives, is
competitiveness of ASEAN forest products. the best way to achieve this.

INDIA IMF raises India’s GDP forecast
India budget promises spending and job growth The International Monetary Fund (IMF) raised its projection for
India's Finance Minister, Nirmala Sitharaman, presented the India’s gross domestic product (GDP) growth for 2024-25 by
first full annual budget of Prime Minister Narendra Modi's 20 basis points to 7% amid a boost in private consumption,
new government which took charge in June. especially in rural areas.
Its focus on the poor, women, youth and farmers was “The forecast for growth in India has been revised upward
highlighted. Sitharaman outlined plans to increase spending, with the change reflecting carryover from upward revisions
generate jobs and offer middle-class tax relief, with extensive to growth in 2023,” the update to the IMF’s World Economic

job creation expected over the next five years and significant Outlook (WEO) said.
changes in tax brackets and rates. The budget included In 2025-26, the IMF expects growth to slow to 6.5
massive allocations for infrastructure and housing which may percent, as it stated in its April World Economic Outlook..
spur demand in the wood panel sector. The RBI has projected the Indian economy to grow at 7.2
The budget is themed on improving access to physical, percent in FY25.
social and digital infrastructure along with workforce skills
upgrading. The finance minister announced a flurry of measures VIETNAM

for boosting the infrastructure, housing and micro and small/ Wood and Wood Product (W&WP) trade highlights
medium sized enterprises. According to Vietnam Customs W&WP exports in July 2024
The budget allocates Rp11.1 lakh crore (approx. US$132 reached US$1.3 billion, up four percent compared to June
billion) for infrastructure with 12 industrial parks sanctioned 2024 and up 16 percent compared to July 2023.
under the National Industrial Corridor Development Programme. Of this WP exports, alone contributed US$915 million, up
Investment-ready industrial parks are to be developed in or seven percent compared to June 2024 and up 21.6 percent
near 100 cities. compared to July 2023.

India's path to prosperity is via growth Melena-Nsk

An article in Nikkei.com, quoting Chetan Ahya, the Chief
Asia Economist for Morgan Stanley, suggests that supply-
side reforms and private investment are the key to India's
economic future.
The return of a coalition government in India after two terms
has raised the intensity of the policy debate over whether the
country needs to enact more aggressive redistributive policies.

Ahya’s view is that one of the key drivers for India's
growth, which Morgan Stanley forecasts to be quite healthy