Pedestrians walk towards the Chhatrapati Shivaji Terminus train station at dusk in Mumbai, India, on Wednesday, Oct. 4, 2023.
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The International Monetary Fund has raised its growth forecast for India, saying the country’s growth will remain strong in 2023 and 2024 — but analysts warn there will be headwinds ahead.
Economists who spoke to CNBC are also bullish about India’s growth, attributing the economy’s growth to an increase in consumption, infrastructure spending, and more businesses being set up — but they say geopolitical risks and inflation concerns will be challenging.
“India will continue to be a bright spot in the global economic picture,” Alicia Garcia-Herrero, chief economist for Asia Pacific at Natixis said.
The country “has been favored by foreign investors in recent years, reflecting its promising long-term outlook helped by a youthful demographics and a fast-expanding middle class. We expect such a trend to continue,” she told CNBC.
Consumer spending remains one of the biggest growth drivers in the world’s most populous nation, she added.
India’s consumer market is set to become the world’s third largest by 2027 as the number of middle to high-income households rise, according to a report by BMI, a Fitch Solutions research unit.
“India is on the map. There is a lot of pent-up demand and sentiment is very positive. There is a sense that India is back on the frontline and the propaganda in the media helps consumption too,” she added.
India’s government has “taken several steps to improve businesses and this is attracting global and local investors,” said Nilesh Shah, managing director at Kotak Mahindra Asset Management.
“The China-plus-one strategy is also pushing relocation of global supply chains and India will be a beneficiary,” he added.
India is on the map. There is a lot of pent-up demand and sentiment is very positive.
Alicia Garcia-Herrero
chief economist for Asia Pacific, Natixis
The optimism in India’s growth story is partly because more Indians are choosing to work or set up businesses in the country rather than “moving to the Western world in search for better opportunities,” Shah said.
“The West is less appealing than it used to be,” Garcia-Herrero said. “And India is more appealing than it used to be — at least for very talented people.”
Headwinds remain
While the IMF maintained it’s 2024 projection of 6.3% growth in India, economists are expecting the country to face a slew of headwinds.
“Widening current account deficit, resurging inflation and heightened geopolitical tensions would be the major headwinds for India,” Garcia-Herrero warned.
Although India’s “pre-election environment is quite conducive to growth,” the Reserve Bank of India’s loose monetary policy will be “creating future problems,” the economist said.
“India is not increasing productivity as much as needed to make their growth sustainable over time. But this will only become a problem in the next two decades, it’s not an immediate issue.”
People walk across a damaged road following flash floods in the Faqir Gujri area, on the outskirts of Srinagar on July 23, 2023.
Extreme weather events will also impact India’s growth.
Heatwaves and droughts have caused water levels in southern Indian reservoirs to fall below 10 years average, causing an adverse effect on agriculture and rural recovery, Kotak’s Shah pointed out.
Geopolitical tensions have intensified from rising tensions between India and Canada, as well as theattack on Israel by Palestinian militant group Hamas which caused oil prices to spike by more than 4% on Monday.
“India imports more than 80% of its oil consumption, so higher prices will impact India’s trade and fiscal deficit, inflation and growth adversely,” Shah said.
Although economists remain optimistic about India’s growth, Garcia-Herrero emphasized the importance of foreign investments to keep the economy going.
“In India’s position as the leader of the global south competing with China, India needs more foreign investments to create more manufacturing jobs,” she said.
Global growth slows
In the report published Tuesday, the IMF said the global economy will continue to recover at a slow pace as a consequence of the Ukraine war, high inflation and the aftermath of the pandemic.
Its projections show that global growth will slow from 3.5% in 2022 to 3% this year, before falling further to 2.9% in 2024.
“Growth remains slow and uneven, with growing global divergences. The global economy is limping along, not sprinting,” the fund said.
The IMF also raised its 2023 U.S. growth projections by 0.3 percentage points from its July report to 2.1%, and hiked next year’s forecast by 0.5 percentage points to 1.5%.
Delta Air Lines is teaming up with Dutch aviation startup Maeve Aerospace to take its idea for a more advanced, fuel-sipping hybrid-electric aircraft powertrain from the drawing board and into regional commercial service.
Delta Air Lines announced a new partnership with Maeve Aerospace meant to accelerate certification and deployment of the startup’s next-generation hybrid-electric regional aircraft – a move that could reduce the company’s fuel consumption on those routes by up to 40% compared to ICE-only assets.
“Delta is proud to collaborate with Maeve to help shape the next chapter of regional aviation and accelerate progress toward a more sustainable future of flight,” said Kristen Bojko, Vice President of Fleet at Delta Air Lines. “As we work toward the next generation of aircraft, we look to partners like Maeve who embody the bold, forward-thinking innovation we champion at Delta – solutions that advance aircraft design, enhance operational efficiency, elevate employee and customer experiences, and cut emissions. While driving toward transformative technologies that strengthen our network and redefine regional air travel remains a key priority, we’re equally focused on safety and a more sustainable future of flight.”
Maeve introduced its M80 hybrid-electric, 80-seater aircraft in November of 2023 as a sustainable, cost-effective aircraft designed to satisfy the operational needs of the majority of regional operators and airports.
The M80’s electric motors can also be used during taxiing operations on the ground to reduce surface-level carbon emissions while also supporting a more efficient integration of more electric aircraft systems. Two facets of the aircraft’s designs that are specifically called out by Delta’s press material as being of extreme interest to the commercial carrier.
“It’s a privilege to have Delta as a partner in the development of groundbreaking technologies and processes,” shared Martin Nuesseler, Chief Technology Officer at Maeve Aerospace. “Their expertise in fleet innovation and commitment to aviation sustainability is unmatched, and we’re proud to work together to tailor the MAEVE Jet for the US market.”
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Utilities, state governments, and private developers are racing to roll out faster, more powerful EV chargers. At the same time, automakers and tech giants across the globe are pouring billions into R&D to develop batteries that can take ever-higher levels of power. But what if there’s a better, easier, cheaper, and more effective way to cut emissions?
What if, instead of faster chargers, we pushed for SLOWER gas pumps?
I want to start this conversation by pointing out that there’s a precedent for this idea. Back in 1993, the Environmental Protection Agency (EPA) finalized a rule that limited the rate that gas service stations could pump fuel to a maximum of 10 gallons per minute (gpm), with the stated goals of reducing evaporative emissions and promoting safety by ensuring the integrity of the nation’s refueling infrastructure.
The basic idea is this: instead of “just” asking for utility rate-payers and State or local governments to help cover the costs of rolling out an increasingly huge EV charging infrastructure that will never be big enough to convince the red hats it’s ready, anyway, we focus our lobbying efforts on slower gas pumps in blue states. Like, significantly slower gas pumps.
By reducing the maximum pumping speed from 10 gpm to 3 gpm, we could increase the minimum time to fill up a half-ton Ford F-150’s 36 gallon fuel tank (yes, really) from under four minutes to nearly twelve (12). Factor in the longer wait times ICE-vehicles would have to endure waiting in line to refuel, as well, and we’re talking about a 20-30 minute turnaround time to go from just 10% to a usable 80-or-90% fill.
You don’t have to take my word for that, though. You can take big oil’s. “If I think about a tank of fuel versus a fast charge, we are nearing a place where the business fundamentals on the fast charge are better than they are on the (fossil) fuel,” BP head of customers and products, Emma Delaney, told Reuters.
Those fundamentals revolve around amenities. If you’re popping into a gas station for a three or four minute visit, you’re probably getting in and out as fast as you can. But if you’re there a bit longer? That’s a different story. You might visit the rest room, might buy a snack or order a coffee or suddenly remember you were supposed to pick up milk on your way home, even – and that stuff has a much higher margin for the gas station than the dino-juice, totaling 61.4% of all fuel station profits despite being a fraction of the overall revenue.
What do you guys think? Does this low-cost, high-impact idea to cut the time delta between refueling your gas car and recharging your EV have legs? What concerns do we need to address before we take it to Gavin and JB? Let us know, in the comments!
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John Deere is quick to point out that these new GX side-by-side utility vehicles are not golf carts. Fair enough – while they;re not quite in the same go-anywhere league as Deere’s TH 6×4 Gas or TE 4×2 Gators, the Gator GX and GX Crew offer more than enough capability to handle just about anything you’ll find on a typical campus, golf course, or job site.
To that end, the sturdy composite dump bed, comfortable and supportive high-back foam seats seem credible enough at first glance. And, if you give the new Deere UTVs a second glance, you’ll see a 367-L (13-cu ft) cargo box can haul more than 800 lbs. (~365 kg) of mulch, nursery plantings, building supplies, firewood, animal feed, or tools.
These are serious machines, in other words, ready to get down and do some serious work, but without the noise, vibration, and harmful exhaust emissions of gas.
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“The Gator GX lineup offers property owners the opportunity to increase productivity around their properties with less noise, less maintenance and more versatility,” said John Deere Go To Market Manager Eric Halfman. “These utility vehicles are intuitive and durable while offering users the comfort, reliability and convenience they expect from a John Deere Gator.”
The key component in the new GX and GX Crew is the new, 5.4 kWh, 51.2V lithium-ion battery that sends power to a high-efficiency electric drive motor with responsive torque and smooth acceleration. An onboard charger allows for convenient charging anywhere with a standard, grounded 120 outlet, eliminating the need for handling fuel or trips to the gas station and fully charging the 5.4 kWh battery over night, with more than 8 hours of continuous operation on tap that’s extendable with clever use of the new Deere’s regenerative braking.
These new electric Gators are available in classic John Deere green or grey metallic, and start at $17,499 with a whole suite of available accessories to make upfitting a breeze. The company says they’ll be available for order at your local John Deere TriGreen dealer in Q1 of 2026.
Electrek’s Take
I imagine that applying the Gator name to a vehicle that I’d call a glorified golf cart makes me feel something similar to what the Mustang guys feel whenever they see a Mach-E drive past. As such, I’ll give myself the same advice I give them: the people who make the thing decide what makes it worthy of the name, not you.
As such, I’d better get used to it. The good news there, of course, is that it seems like Deere’s latest Gator is going to be more than good enough to win me over. Eventually.
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