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Indian companies are betting on small towns and villages to sustain growth at a time the third-largest Asian economy is bracing for pain from US’s punishing 50% tariffs.Businesses from biscuits makers to building materials suppliers underscored the buoyant rural demand in investor calls for their June quarter earnings, adding that low inflation and the prospect of a good harvest will ensure the 900mn Indians living outside cities keep spending. Consumption growth in India’s countryside has outpaced that in urban markets for six straight quarters, according to data analytics firm NielsenIQ.Demand in rural India, dominated by its agrarian economy, is a bit more insulated from the impact of the exorbitant US tariffs, making it an important focus area to get growth from, Sudhanshu Vats, managing director at adhesives and paint maker Pidilite Industries Ltd told Bloomberg News.India’s gross domestic production in the three months through June expanded at the fastest pace in more than a year. Private consumption grew 7% on the back of strong rural demand and improvement in agriculture wages.The growth, however, risks hitting a speed-bump after US President Donald Trump doubled the 25% duty on Indian exports from August on more than half of goods shipped to the US — its biggest market. The levies will almost certainly bruise labour-intensive industries such as textiles and jewellery, which are concentrated around large cities.Meanwhile, real rural wages rose at the fastest pace in more than seven years, according to data from Citigroup Inc. The gap between rural and urban monthly per-capita consumption has also narrowed significantly, official figures showed.“We’ve seen very good growth this quarter,” Varun Berry, managing director at Britannia Industries Ltd, told investors last month, despite the global economy going through turbulent times. The bread and cookie maker expects to retain its growth momentum with a focus on India’s rural markets, he said.Pidilite is adding distributors and setting up branded stores in smaller towns, with population of less than 12,000, as well as expanding waterproofing centres and mobile customer support vans, to drive growth.Consumption accounts for more than half of the GDP in the world’s most populous nation, and mass spending in its hinterland is fast catching up with that in cities. Last month, Prime Minister Narendra Modi announced tax cuts that aim to shield the economy from the negative impact of US tariffs.“The timing of GST reforms is apt,” Tanvee Gupta Jain, chief India economist at UBS Securities, said in a note, adding that counter-cyclical policy measures were necessary to counter tariff uncertainties. The tax cuts will boost household consumption over the next two to three quarters, she added.Shares of rural-focused stocks have outperformed broader indexes, suggesting investors see them as a hedge against tariff risks.“We see large volumes of contribution coming from rural segment,” said Nikhil Doda, co-founder of Archian Foods Pvt, which sells a popular cumin-flavoured fizzy drink, Lahori Zeera.The company that competes with Coca Cola Co and PepsiCo Inc, even provides “insulated chill boxes” to rural sellers of its 10-rupees ($0.1) beverage, as most small shops don’t even have a refrigerator. Small towns are a significant contributor to the company’s sales.There is an inclination amid rural consumers to try newer products, according to K Ramakrishnan, managing director for South Asia at consumer research firm, Worldpanel by Numerator. “All the contributing factors to boosting consumption in rural areas are strong for India.”

Despite the challenges posed by higher US tariff rates, the global economy will remain largely resilient against the uncertainty and the disruptions in global trade flows, according to QNB.At the beginning of the year, the global outlook pointed to steady economic growth, against a backdrop of cautious optimism. Tailwinds included the policy rate cutting cycles by major central banks, resilient growth of the US economy, cyclical recoveries in China and the Euro Area, and constructive overall investor sentiment, QNB noted in an economic commentary.Growth in both Advanced Economies (AE) and Developing Economies (DE) was initially expected to remain unchanged compared to last year, adding up to a world economic expansion rate of 3.3%.But the optimistic tone began to shift as the new US administration embarked on an aggressive agenda of policy change, with sweeping implications for the global macroeconomic landscape.On April 2, a day that came to be known as “Liberation Day,” President Trump announced sweeping tariffs, including a 10% baseline levy on all imports, and higher rates on selected countries.Financial markets reacted sharply to the announcements, with global stocks tumbling on fears of broader and deeper trade wars, as well as tainted policy credibility.The outlook narrative then debated the odds of a world recession. At its worst moment, growth expectations for the global economy dropped from the recent peak by 0.5 percentage point (p.p.) to 2.8%, a significant downgrade in a very short period of time.Since then, asset prices have recovered, with key indices reaching new highs, as the more negative trade-war scenarios were ruled out, AI-driven growth tailwinds regained the spotlight, and corporate profits remained robust.According to QNB, growth expectations have stabilised and even slightly recovered. The group of AE, which represents 40% of the world economy, is now expected to grow 1.5% this year, from a low of 1.4%.More significantly, after falling 0.5 p.p. to 3.7%, expectations for growth in the Developing Economies (DE) climbed to 4.1%, re-gaining most of the previous losses.Thus, recovering growth projections across the AE and DE groups are contributing to improving the outlook for global economic growth, which is expected to reach 3%.In QNB’s view, despite the challenges posed by higher US tariff rates, the global economy will remain largely resilient against the uncertainty and the disruptions in global trade flows.QNB has discussed two key factors that support its view of an improving global economic outlook.First, the US administration has concluded a first set of negotiations, which helped moderate uncertainty and discard the most extreme negative scenarios. The initially unyielding position of President Trump shifted towards pragmatism as deals were reached with the UK, Japan, Indonesia, Vietnam, the Philippines, and the EU, among others, narrowing the range of potential tariff rates for the rest of the world. Furthermore, even as the US has become more protectionist, the rest of the world is largely continuing to move in the opposite direction.From the European Union (EU) to Asia and Latin America, most major economies continue to view trade as essential to their growth models, and are actively pursuing deeper integration via new or deeper trade agreements. Even as the world adjusts to a more protectionist US, the outlook on global trade has improved, contributing to a less pessimistic growth scenario.Second, monetary policy easing cycles by major central banks will contribute to improve overall financial conditions and the stability of the global economy. Bringing inflation under control has allowed the US Federal Reserve and the European Central Bank (ECB), the two most important central banks in the AE, to start their interest rate cutting cycles.In the US, the Federal Reserve is set to cut its policy interest rate by 125 basis points over the next year, while the ECB could implement one more cut, bringing its benchmark rate to 1.75%. Stock markets have staged a notable recovery backed by resilient corporate earnings, while corporate credit spreads are narrowing, signalling improved market sentiment and easier credit for firms.The Financial Conditions Index (FCI) provides an informative summary of the overall state of markets, and is signalling that improving conditions are reducing borrowing costs for households and business, adding support to consumption and investment.“All in all, the global outlook initially deteriorated sharply after the US tariff announcements, but pessimism has gradually subsided on the back of improving prospects for international trade and better financial conditions supporting consumption and investment, leading to a broad based upgrade of performance expected across the AE and the DE,” QNB added.

When a quiet resurgence in Chinese equities developed into a world-beating rally, it took many seasoned market watchers by surprise.There’s little sign of a revival in spending by consumers and businesses that would dramatically inflate the earnings of Chinese companies. Instead, the boom appears to be driven by hedge funds and retail investors seeking higher returns in an environment of low interest rates. There’s also optimism that breakthroughs in artificial intelligence and a government drive to address industrial overcapacity are about to kick-start China’s economy.For now, official data isn’t pointing to an economic rebound, and there are already signs that share prices may be overheating, reviving memories of a stock market crash in 2015 that burned small investors. Financial authorities are under growing pressure to step in and calm the speculative fever.What’s happening in China’s stock market?The CSI 300 Index jumped 10% in August, its best performance since a rally last September. Red flags have emerged. Market turnover has hit a record. The outstanding amount of margin trades — where investors borrow money to buy local stocks in the onshore market — has also surged to an all-time high, signalling a growing appetite for risk-taking.In an effort to curb speculative fever, mutual funds have capped daily purchases of some of the year’s best performing equity portfolios, and commercial banks have tightened oversight of clients using credit cards to fund stock investments.What’s behind the sudden rally?The money is pouring in mostly from households, whose savings are collectively at a record high. With interest rates on savings drifting lower, some have been turning to equities for better returns. Wealthy investors have led the charge, often via hedge fund investments. But the volume of money heading into stocks is still relatively small compared with the trillions of yuan saved by Chinese consumers overall, and this is fuelling speculation that the market rally has further to run.Easing trade tensions with the US have helped to calm investor nerves. There are hopes that a government “anti-involution” campaign to combat price wars and fix overcapacity across various industries will break a deflationary cycle that’s undermined the confidence of consumers and businesses. And China’s breakthroughs in artificial intelligence have led to hopes that national industries are poised for a wave of technological progress that will accelerate economic growth and boost corporate earnings.Why are Chinese financial regulators concerned?The country’s financial authorities face a difficult balancing act in trying to engineer sustainable growth in the stock market without causing investors to panic. The Beijing government has made clear it would prefer a “slow bull market” that would allow for sustainable wealth creation and a durable boost in household consumption. The last thing the authorities want is a sharp reversal following a rapid rally, which would inflict heavy losses on retail investors. But as the rally continues, analysts are warning of a stock market bubble that could pop unless corporate earnings prospects improve or the government boosts its support for the economy.What might they do about it?China’s financial regulators are considering a number of measures to cool the market. These include a removal of some curbs on short selling and various measures to rein in speculative trading, according to people familiar with the matter.For now, regulators may have some breathing room before they need to intervene, as the involvement of retail investors in the stock market is still relatively limited by historic standards, suggesting the rally may not be as fragile as some market watchers suggest.What’s at stake if the market doesn’t stabilise?Much of China’s economy is still in the doldrums and suffering from a protracted real estate crisis. With the government trying to kick-start household spending to offset the negative impacts of a trade battle with the US the biggest destination for Chinese exports the last thing it needs is a stock market slump that would further dent consumer confidence. If the losses became too hard to bear, it could damage the social stability that’s the number-one priority for China’s leadership.

The Gulf Co-operation Council (GCC) is charting a course towards a sustainable future by utilising its rich marine heritage through a flourishing blue economy, with regional scientific co-operation and joint coastal initiatives acting as key enablers, marine conservationist and ocean advocate engineer Ahmed Nabil has said.“I have many fellows at Qatar University (QU), they are doing an excellent job as well in marine conservation, helping in minimising the impact of coastal development. So I would say Qatar is playing a key role, and as I always say, there is no ceiling for improvement,” he said, lauding Qatar’s efforts and the contributions of researchers at QU.Nabil was speaking to Gulf Times on the sidelines of Qatar Events Show 2025’s ‘Tourism and the Blue Economy: A Pathway to Climate Resilient Events in the 21st Century’ session Thursday. Citing the significant strides made in recent years, Nabil noted a ‘wonderful progress’ in this area, with environmental authorities and agencies playing increasingly vital roles in coastal development projects.With the GCC region historically dependent on oil and gas, he said the blue economy serves as an opportunity for economic diversification, with tourism at its forefront. He pointed to the region’s deep historical connection to the ocean, rooted in centuries of fishing, pearl diving, and hunting. This legacy, he added, provides a natural springboard for developing unique tourist experiences that showcase local cultures and heritage.Well positioned within the Arab Gulf, Nabil said the region boasts a rich marine environment packed with diverse species, including unique “resilient corals” capable of withstanding harsh conditions. He noted that these corals could be essential for the future of marine ecosystems globally, which are increasingly threatened by coral bleaching due to climate change.“Starting from the Arab Gulf, the corals and the fish, or the rich biodiversity, could be a very good starting point for research for supporting the world and the corals of the future,” he pointed out.Beyond research, he said he sees the region becoming a prime destination for eco-tourism activities such as whale and shark watching, turtle nesting observations, various water sports, among others.Nabil noted the significant technological advancements within GCC nations, describing the last decade as a period of “wonderful movement”. He cited the UAE’s leading research vessels as a proof to collaborative regional efforts in marine science, working side by side. He also commended QU’s ongoing work in seagrass and Dugong conservation, underlining his conviction that the GCC is “in the lead” in these conservation efforts.Nabil stressed that collaboration is indispensable for the success of the blue economy, urging for further development of scientific co-operation among all GCC countries and across the Arab Gulf.Defining the blue economy broadly to cover all ocean-related human activities from fishing and shipping to coastal development, resorts, and water sports he spotlighted its growing relevance for the GCC.Given its strategic location along the Arab Gulf, Arab Sea, and Red Sea, Nabil said the ocean plays an important role in the region’s geography, resources, and the cultural fabric of its people.“That’s why we believe the next or the future of the economy is going to be from the ocean and back to the ocean,” he said.

Qatar's economy recorded strong growth in 2024, with gross domestic product (GDP) reaching $196bn, supported by the expansion of non-hydrocarbon sectors and an increase in foreign direct investment, which exceeded $2.7bn.This was disclosed by HE the Minister of Finance Ali bin Ahmed al-Kuwari, at a dedicated session on Qatar National Vision 2030, held as part of the Asia Leaders Conference organised by Goldman Sachs in Hong Kong.In his opening remarks, HE al-Kuwari reviewed the progress Qatar has made in implementing the National Vision 2030, emphasising that the vision serves as an ambitious national roadmap for building a diversified and sustainable economy based on knowledge and innovation.The event brought together an elite group of decision-makers, business leaders, and investors from across Asia and around the world. Affirming that Asia remains a key strategic partner for Qatar, accounting for the largest share of the country's trade, which exceeded $80bn annually; he indicated that this figure is expected to grow further in light of the ongoing North Field Expansion and the anticipated rise in liquefied natural gas (LNG) exports, as well as long-term partnerships secured with several Asian countries.He also highlighted that the next phase of co-operation with Asia will focus on expanding trade opportunities, strengthening public-private partnerships particularly in healthcare and tourism and boosting investment in clean energy, digital technologies, and advanced industries.

As part of the State of Qatar's efforts to promote national industry and enhance local content in government procurement, the Ministry of Finance, in collaboration with Qatar Development Bank (QDB), organised a dedicated meeting to present and discuss the draft Mandatory List of National Products, reports QNA.The meeting targeted owners and managers of Qatari factories as well as contracting companies, providing a platform for direct dialogue on the proposed implementation mechanisms, and offering an opportunity to gather feedback and insights from representatives of the industrial sector regarding activation opportunities and integration with government entities.This initiative reflects the commitment of the relevant authorities to empower national manufacturers to benefit from government procurement opportunities and to strengthen partnerships between the public and private sectors, contributing to the realisation of Qatar National Vision 2030 for a diversified and sustainable knowledge-based economy.

Second-quarter GDP growth upgraded to 3.3% paceInvestment in AI, consumer spending drive upward revisionWeekly jobless claims fall 5,000 to 229,000The US economy grew faster than initially thought in the second quarter, in part driven by business investment in intellectual property such as artificial intelligence, but tariffs on imports continued to cloud the outlook.The upgrade to gross domestic product reported by the Commerce Department on Thursday also reflected upward revisions to consumer spending as well as business investment in equipment. That resulted in a measure of underlying domestic demand also being revised higher. With the Federal Reserve focused on a softening labour market, economists expected the US central bank to resume cutting interest rates next month."I doubt this moves the needle for the Fed, but at the margin, these revisions work against the case for urgency to cut rates," said Stephen Stanley, chief US economist at Santander US Capital Markets.GDP increased at a 3.3% annualised rate last quarter, the Commerce Department's Bureau of Economic Analysis (BEA) said in its second estimate. The economy was initially reported to have grown at a 3.0% pace in the second quarter. Economists polled by Reuters had expected GDP growth would be raised to a 3.1% rate.The economy contracted at a 0.5% pace in the January-March quarter, which was the first GDP decline in three years.The manner in which President Donald Trump's administration has implemented the tariffs, including escalations and 90-day pauses, has muddied the waters, making it challenging to parse economic data. A front-loading of imports as businesses rushed to beat the duties pulled down GDP in the first quarter before snapping back as the flow of foreign merchandise ebbed.Neither first- nor second-quarter GDP readings are a true reflection of the economy's health because of the wild swings in imports. To get a better read of the economy, economists are focusing on the final sales to private domestic purchasers measure, which excludes trade, inventories and government spending.This measure, also viewed by policymakers as a barometer of underlying economic growth, increased at an upwardly revised 1.9% pace last quarter, matching the first quarter's pace.Domestic demand was initially estimated to have grown at a 1.2% rate. The revision reflected upgrades to consumer spending, the economy's main engine, which is now estimated to have increased at a 1.6% rate. That was up from the previously reported 1.4% pace.Business spending on intellectual property products grew at a 12.8% rate, double the initially estimated 6.4% pace."Investment related to AI is helping mask some of the weakness elsewhere in the economy, but the good news is that there is little sign that this support is set to fade anytime soon," said Ryan Sweet, chief economist at Oxford Economics.Growth in business investment in equipment was upgraded to a 7.4% pace from the 4.8% rate estimated last month.Still, economists expect a lacklustre second half, which would limit economic growth to about 1.5% for the full year because of tariffs. That reading would be down from 2.8% in 2024.The BEA also reported that profits from current production with inventory valuation and capital consumption adjustments rebounded $65.5bn last quarter. Profits decreased $90.6bn in the January-March period.But further increases are likely to be hampered by Trump's protectionist trade policy, which has raised the nation's average import duty to its highest level in a century, inflicting pain on companies ranging from retailers to manufacturers.Caterpillar this month warned tariffs could cost the economic bellwether up to $1.5bn this year.In July, General Motors' second-quarter earnings took a $1.1bn hit from the duties and the automaker anticipated more pain in the third quarter. Clothing retailer Abercrombie & Fitch on Wednesday warned that higher tariffs on countries such as Vietnam, Indonesia, Cambodia and India would increase costs by $90mn this year.Fed Chair Jerome Powell last week signalled a possible interest rate cut at the central bank's September 16-17 policy meeting, in a nod to rising labour market risks, but also added that inflation remained a threat.The Fed has kept its benchmark overnight interest rate in the 4.25%-4.50% range since December.News on the labour market remained mixed, with a report from the Labor Department showing initial claims for state unemployment benefits decreased 5,000 to a seasonally adjusted 229,000 for the week ended August 23. The labour market is stuck in a no-hire, no-fire mode due to tariffs.The number of people receiving benefits after an initial week of aid, a proxy for hiring, fell 7,000 to a seasonally adjusted 1.954mn during the week ending August 16, the claims report showed. The so-called continuing claims data covered the week during which the government surveyed households for August's unemployment rate.Continuing claims rose slightly between the July and August survey weeks, leaving some economists expecting the unemployment rate will rise to 4.3% in August from 4.2% in July.