The Financial Times

Woxsen School of Business Copyright © by the financial times (wsb) New Delhi 01-Nov-25

Macro Economics
Financial Newspaper

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Group-9 (Sec-A)
Vamshi Krishna Ghatkeshwaram - 1921005
Sri Saila Vidadala - 1921007
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Sujay Munjeti - 1921033
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The Financial Times 1

 THE FINANCIAL TIMES
1st November, 2025

Modi’s $5 trillion
economy goal is at
risk
India’s slowdown
and a simmering
shadow banking
crisis is putting
Prime Minister
Narendra Modi’s
goal of crafting a $5
trillion economy at
risk.
The nation entered 2025 as the world’s fourth-biggest Das may be able to ease a financing squeeze,
economy poised to become the third. Instead, it has but it’ll take delivery on big bang reforms to
slipped a notch to fifth place as a collapse in unlock the productivity gains needed to power
consumption slowed gross domestic product growth the economy toward Modi’s goals. While his
to the weakest . External shocks from trade wars to return to office this year with a bigger mandate
surging oil prices are exacerbating that pain. Troubled stoked expectations among investors for bolder
by the grim prospects, the central bank has lowered reforms, that hope is fading 100 days into his
interest rates to a nine-year low and Governor second term as global investors head for the
Shaktikanta Das wants other stakeholders -- from the exit. We expect the first-term reforms of the
government to banks to the private sector -- to step Modi government, including a clean-up of the
up. But with Finance Minister Nirmala Sitharaman banking sector, a new bankruptcy law, and a
facing lower revenue prospects that threaten her new indirect tax structure, to mark a transition
budget gap goal, the heavy lifting on stimulus appears to a faster-growth trajectory.
to lie with the Reserve Bank of India.

Volatile Oil India has

overtaken US &
The World’s Largest 10 Economies

Prices has become 2nd

largest economy

The size of the Indian consumer Rank Country Proj. GDP

market has increased to $3.6 trillion.
The role of investment is seen as a #1 China $64.2 trillion
critical enabler for innovation, rapid
#2 India $46.3 trillion
productivity growth and new
Volatile oil prices following technology, helping to boost jobs #3 United States $31.0 trillion
the attack on an oil facility growth. The key goal is to transform
in Saudi Arabia are an India by lifting India into the ranks of #4 Indonesia $10.1 trillion
added risk to the economy the world's upper-middle-income
that imports 80% of its #5 Turkey $9.1 trillion
countries. As India continues to
crude oil needs, while ascend in the rankings of the world's #6 Brazil $8.6 trillion
slowing global growth
largest economies, its contribution to
spawned by trade tensions #7 Egypt $8.2 trillion
have subdued demand for global GDP growth momentum will
its exports. also increase. As the size of its #8 Russia $7.9 trillion
consumer market continues to grow
at a rapid pace. #9 Japan $7.2 trillion

#10 Germany $6.9 trillion

The Financial Times 2

Terrorism is The United States: Less
Dominant Power
unlikely to
disappear
Terrorism, proliferation,
and conflict remains as a The smoke will rise into the
key concern even as upper troposphere, be self-
resource issues move up lofted into the stratosphere,
on the international and spread globally within
agenda. Rapidly
expanding nuclear
weeks. Terrorism is unlikely
to disappear by 2025, but its The US finds itself as one of a number of important
arsenals in Pakistan and actors on the world stage, albeit still the most
India portend regional appeal could diminish if
and global catastrophe. economic growth continues powerful one. Even in the military realm, where the
Pakistan and India may and youth unemployment is US will continue to possess considerable advantages,
have 400 to 500 nuclear mitigated in the Middle East. advances by others in science and technology,
weapons with yields
Economic opportunities for expanded adoption of irregular warfare tactics by
from tested 12- to 45-kt both state and nonstate actors, proliferation of long-
values to a few hundred youth and greater political
pluralism probably would range precision weapons, and growing use of cyber
kilotons. If India uses
100 strategic weapons to dissuade some from joining warfare attacks increasingly will constrict US freedom
attack urban centers and terrorists’ ranks, but others— of action.
Pakistan uses 150, motivated by a variety of
fatalities could reach 50 A more constrained US role has implications for
to 125 million people,
factors, such as a desire for others and the likelihood of new agenda issues being
and nuclear-ignited fires revenge or to become tackled effectively. Despite the recent rise in anti-
could release 16 to 36 Tg “martyrs”—will continue to Americanism, the US probably will continue to be
of black carbon in turn to violence to pursue seen as a much-needed regional balancer in the
smoke, depending on their objectives. Middle East and Asia. The US will continue to be
yield.
expected to play a significant role in using its military
power to counter global terrorism. On newer security
issues like climate change, US leadership will be
widely perceived as critical to leveraging competing
Cold War would emerge and divisive views to find solutions. At the same time,
naturally in the Middle East the multiplicity of influential actors and distrust of
vast power means less room for the US to call the
with a nuclear-armed Iran shots without the support of strong partnerships.
Developments in the rest of the world, including
internal developments in a number of key states—
particularly China and Russia—are also likely to be
Although Iran’s Episodes of low-intensity conflict crucial determinants of US policy.
acquisition of nuclear taking place under a nuclear
weapons is not umbrella could lead to an
inevitable, other unintended escalation and broader
countries’ worries about
a nuclear-armed Iran
could lead states in the
conflict if clear red lines between
those states involved are not well
established. We believe ideological
China & India
region to develop new
security arrangements
with external powers,
conflicts akin to the Cold War are
unlikely to take root in a world in
which most states will be
takeover power
acquire additional preoccupied with the pragmatic
weapons, and consider challenges of globalization and The economies of India and China have grown rapidly
pursuing their own shifting global power alignments. over the past couple of decades, and it is widely
nuclear ambitions. It is The force of ideology is likely to be accepted that these two emerging giants will
not clear that the type of strongest in the Muslim world— transform the global economy in numerous ways over
stable deterrent particularly the Arab core. In those
the coming decades. Despite the importance of these
relationship that existed countries that are likely to struggle
between the great with youth bulges and weak countries, their strengths and weaknesses, the sources
powers for most of the economic underpinnings—such as of their growth, and the missing ingredients to sustain
Cold War would emerge Pakistan, Afghanistan, Nigeria, high growth rates—are not widely known. Although
naturally in the Middle and Yemen—the radical Salafi the economic growth of has indeed been impressive, it
East with a nuclear- trend of Islam is likely to gain has also been uneven, with some economic sectors
weapons capable Iran. traction.
developing more rapidly than others.

The Financial Times 3

India outnumbers China in population
Population: The number of migrants seeking to move from
disadvantaged to relatively privileged countries
is likely to increase. India has on surpassed
1,461,625,234 China and has become the most populous
country of the world. India’s population will
still continue to grow as a result of ‘population
momentum’ – the effect often referred to by
Hans Rosling and Gapminder as the ‘inevitable
fill-up‘ when young generations grow older.
But we can now see an end to population growth:
reaching ‘peak child’ anticipates the later ‘peak
population’. The number of children has peaked;
total population will follow and reach its peak in
four decades. Gandhiji’s famous statement that
“India lives in her villages” remains true with
under 40% of the population in urban areas.

Real-time Learning Life Expectancy reaches 73 years

The key methods of engaging with material

and
Content will evolve to be real-time video
collaboration
and mobile devices.

 The ability to learn anywhere and at any time

 Real-time video collaboration with real teachers
 Improving the quality of teacher-learning, and It is expected that no country will have a life expectancy
personalized and contextual learning is the main focus
of less than 50 years.
 More online access to education materials
 More resource sharing online and self-learning for
teachers

“By allowing an engaging, accessible, and cost-effective

approach to education, technology opens up the prospect
of higher education, personalized courses, and teacher-
training to a much broader population.”

The Financial Times 4

FULLY ELECTRIC VEHICLES

Here, there are no exhaust pipes, transmissions or fuel

tanks. There are no spark plugs, radiators or manifolds.
What the Volkswagen Group factory does have, however,
are batteries stacked to the rafters. Thirty-six shoebox-
sized battery modules, each containing a dozen lithium-
ion cells, are packed into seven-foot long electric-battery
2025: the year of
packs and slung under the floor of each sport utility
vehicle. 5G entertainment
The styling is conventional, the interior is luxurious and
the ride is nearly silent. Established carmakers around the
world are ripping up their business models in the hope of
adapting to a new world in which electricity replaces Intel's Alex Gledhill tells us how 5G can benefit all areas of work
gasoline and diesel. Factories are being overhauled to and life. This year 5G has hit the mainstream and we’ll see it start
produce electric cars, and automakers are snapping to reach its full potential in the media and entertainment
up every battery they can find. The high cost of developing industry. Video is the fastest growing type of traffic today and it is
electric cars is forcing some companies to find partners forecasted to grow 45 per cent annually. In an Ovum report
commissioned by Intel, it is said that media and entertainment
and turning others into acquisition targets. Cars can be
companies will be competing to win a share of a near $3 trillion
charged wirelessly on the charging plate. wireless revenue opportunity.
The van will have a customizable interior. It will feature 5G will be the driving force behind this wireless revenue
seats that can move and rotate on tracks in the floor, opportunity, expected to account for nearly half. We will start to
allowing owners to set up the interior for a variety of see a huge shake up within the media and entertainment
purposes. The cars will have advanced tech features. industry, from the way we consume content to more creative live
immersive experiences for fans.
Volkswagen has said the car will be able to drive
autonomously after being activated through voice control.

The Financial Times 5

Artificial
Intelligence is
thriving
Machine learning and user interfaces such as speech and
gesture recognition technology will advance to increase
productivity or eliminate some knowledge work altogether.
Artificial intelligence would be the ultimate version of Google.
The ultimate search engine that would understand everything
on the web. It would understand exactly what you wanted,
and it would give you the right thing. We're nowhere near
doing that now. However, we can get incrementally closer to
that, and that is basically what we work on.
Growing virtual and
augmented reality
The virtual and augmented reality industry has become an $80
billion market. Major upgrades will come to technology
infrastructure and an ecosystem of apps will form for consumers
and enterprises alike. Surge in the rate of smartphone & mobile
game users, increase in adoption of augmented & virtual reality
solutions in education, and expansion of gamer community drive
the growth of the market. Based on applications, the consumer
segment held the lion’s share. Based on industrial vertical, the
gaming segment accounted for the largest revenue.
The Financial Times
Cloud Technology:
One of the biggest buzzwords of the last decade will continue to
impact the next. Nearly all IT services and web apps could be
delivered through the cloud with more enterprises using the
public cloud as cyber security improves. Cloud computing is
booming and there are many trends to be discussed. It had
astonishing growth last year and is predicted to break its own record
in the next few.
These days it’s almost impossible to find an organization that
doesn’t rely at least partially on cloud services. Whether it’s
application software, operating systems, databases, web
servers, IP addresses or virtual local area networks – the cloud
seems to offer it all.
Advanced Robotics:
Advances in artificial intelligence, machine vision, sensors,
motors, hydraulics and materials has changed the way
products and services are delivered. A surge in tech talent for
building, operating and maintaining advanced robots will
occur. AI and robotics will be integrated into nearly every
aspect of most people’s daily lives.
Artificial intelligence will be built into the algorithmic
architecture of countless functions of business and
communication, increasing relevance, reducing noise,
increasing efficiency, and reducing risk across everything from
finding information to making transactions. If robot cars are
not yet driving on their own, robotic and intelligent functions
will be taking over more of the work of manufacturing and
moving.
6
Delhi’s air is the world’s Plastic pollution in oceans
deadliest—killing over 30,000

New Delhi’s toxic air has caused over 30,000 deaths in 2025, making
India’s capital city the deadliest among the world’s most polluted cities.
But Delhi is not alone. Deteriorating air quality in some of India’s biggest
cities—Delhi, Mumbai and Kolkata—could kill over 130,000 people. At
current levels, Kolkata would be the deadliest, with its air pollution
levels causing 54,800 deaths. New Delhi would be the second worst.
We find that emissions from residential energy use such as heating and
cooking, prevalent in India and China, have the largest impact on
premature mortality globally. The most frequent health impact of such
terrible air quality, according to the study, include chronic obstructive
pulmonary disease, acute lower respiratory illness, cerebrovascular
disease, ischaemic heart disease and lung cancer.
Severe climate change
The amount of plastic in the ocean could considering there’s
already over 5.25 trillion pieces of plastic trash in the world's
oceans, is seriously bad news.
A new report by the UK Government Office for Science,
titled Foresight Future of the Sea, has taken a look at the health
of the world’s ocean and how it could affect the UK’s role in
future scientific research, technology, and trade.
With levels of plastic ocean pollution having seriously increased,
the report warns that the current health of the oceans could have
some damning implications for biodiversity, noting that there
was already a major decline in marine vertebrate populations.
Plastic litter remains one of the biggest problems facing the
world's seas, along with rising sea levels, climate change, and
human-made chemical pollution, such as runoff from pesticides
and fertilizers from farms, industrial waste, and
pharmaceuticals.
"The ocean is out of sight, out of mind," Ian Boyd, one of the
study’s authors and chief scientist for the UK government's
environment department, told BBC News.

Are We Living Through Climate Change’s Worst-Case Scenario?

“We’re a lot closer than we should be,” one Stanford scientist
warned.
Sure, wind and solar energy kept getting cheaper, and electric cars
became best-selling luxury vehicles. But the most important
metric of climatic health—the amount of heat-trapping gas
entering the atmosphere—got suddenly and shockingly worse.
Global emissions are now higher than ever. Many economists
expect carbon emissions to drop somewhat throughout the next
few decades. But maybe they won’t.
It raises a bleak question:
Are we currently on the worst-case scenario for climate change?
“We’re actually a lot closer than we should be; I can say that with
confidence,” says Rob Jackson, an Earth scientist at Stanford and
the chair of the Global Carbon Project, which leads the research
tracking worldwide emissions levels.
It means that humanity emitted more carbon dioxide into the
atmosphere during the century, further warming the planet and
acidifying the ocean.

The Financial Times 7