Companies across the board are planning to lay off employees in hundreds and thousands. There is no confidence in the global economic situation.

Now, Coronavirus too is rearing its head, threatening to collapse the world's factory - China. The job cuts have not spared any major economy, including India. &nbsp;

The global job crisis can turn this year into a year of job cuts. Here's a rundown of the jobs situation across the world:

As the global economy teeters on the recession, last year's press releases on cost-cutting are turning into this year's pink slips.

2020 is turning out to be the year of job cuts. Whatever we may choose to blame it on - Brexit, US-China trade war or the deadly coronavirus. It is certain that there will be fewer jobs in the coming year. Nearly 50 banks across the world will together lay off over 75,000 employees.

HSBC alone is planning to cull 35,000 jobs, Deutsche Bank is planning to get rid of 18,000 employees by 2022. And JP Morgan chase plans to dismiss hundreds of employees this year after letting go nearly 7,000 people in the last four years.

All this in an attempt to slash costs. There is one more reason - with banks going digital, consumer-facing executives have become dead-weight.

And it's not just banks, the auto industry is on a bumpy road. 
 
WATCH: Is 2020 the year of job cuts?&nbsp;

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The once-resilient German auto industry today resembles the now sleepy town of Detroit - the city that marks the fall of the US auto industry.

Globally, more than 5,00,000 auto-related jobs were shed last year. Nearly 1,00,000 auto workers have lost their jobs in Germany.

With the maker of Mercedes cars - Daimler - culling 10,000 jobs recently, now, Renault is planning to cut 20,000 jobs in Germany alone.

Agreed, there is a massive shift to electric vehicles. But, US President Donald Trump's trade war made it worse - Jaguar Land Rover's sales in China plummeted. The Indian-owned British luxury carmaker is now looking to cut 500 jobs at its Halewood plant in the UK.

While the trade-war was seemingly cooling off, the deadly coronavirus has led to the shutdown of factories in China. 
&nbsp; 
Cutting off auto component supplies to factories in Europe, 80,000 auto workers may lose their jobs this year.

Closer home, Bosch is planning to cut thousands of jobs in India as the domestic auto industry shows no signs of recovery.

And if Vodafone, Idea fail to gather enough money to pay off its dues to the government, over 13,000 people could lose their jobs.

Even the state-run BSNL and MTNL could not remain bloated. Nearly 93,000 employees were given the golden handshake.&nbsp;

While startups keep mushrooming, unicorns like Oyo, Paytm and Uber are shedding flab in India.

IT employees in India, especially mid-to-senior level staff, stand the risk of losing their jobs.

As most firms are likely to lay off over 5-8 per cent of the total workforce in the coming quarters which translates to about 10,000-20,000 employees in each large firm.

&nbsp;

Companies across the board are planning to lay off employees in hundreds and thousands. There is no confidence in the global economic situation. Now, Coronavirus too is rearing its head, threatening to collapse the world's factory - China.

Companies across the board are planning to lay off employees in hundreds and thousands. There is no confidence in the global economic situation. Now, Coronavirus too is rearing its head, threatening to collapse the world's factory - China. The job cuts have not spared any major economy, including India. The global job crisis can turn this year into a year of job cuts. Here's a rundown of the jobs situation across the world: As the global economy teeters on the recession, last year's press releases on cost-cutting are turning into this year's pink slips. 2020 is turning out to be the year of job cuts. Whatever we may choose to blame it on - Brexit, US-China trade war or the deadly coronavirus. It is certain that there will be fewer jobs in the coming year. Nearly 50 banks across the world will together lay off over 75,000 employees. HSBC alone is planning to cull 35,000 jobs, Deutsche Bank is planning to get rid of 18,000 employees by 2022. And JP Morgan chase plans to dismiss hundreds of employees this year after letting go nearly 7,000 people in the last four years. All this in an attempt to slash costs. There is one more reason - with banks going digital, consumer-facing executives have become dead-weight. And it's not just banks, the auto industry is on a bumpy road. WATCH: Is 2020 the year of job cuts? × The once-resilient German auto industry today resembles the now sleepy town of Detroit - the city that marks the fall of the US auto industry. Globally, more than 5,00,000 auto-related jobs were shed last year. Nearly 1,00,000 auto workers have lost their jobs in Germany. With the maker of Mercedes cars - Daimler - culling 10,000 jobs recently, now, Renault is planning to cut 20,000 jobs in Germany alone. Agreed, there is a massive shift to electric vehicles. But, US President Donald Trump's trade war made it worse - Jaguar Land Rover's sales in China plummeted. The Indian-owned British luxury carmaker is now looking to cut 500 jobs at its Halewood plant in the UK. While the trade-war was seemingly cooling off, the deadly coronavirus has led to the shutdown of factories in China. Cutting off auto component supplies to factories in Europe, 80,000 auto workers may lose their jobs this year. Closer home, Bosch is planning to cut thousands of jobs in India as the domestic auto industry shows no signs of recovery. And if Vodafone, Idea fail to gather enough money to pay off its dues to the government, over 13,000 people could lose their jobs. Even the state-run BSNL and MTNL could not remain bloated. Nearly 93,000 employees were given the golden handshake. While startups keep mushrooming, unicorns like Oyo, Paytm and Uber are shedding flab in India. IT employees in India, especially mid-to-senior level staff, stand the risk of losing their jobs. As most firms are likely to lay off over 5-8 per cent of the total workforce in the coming quarters which translates to about 10,000-20,000 employees in each large firm.

How 2020 is turning out to be the year of job cuts

The prices of wine may decrease very soon, owing to the surplus of California grapes, CNN reported.

Wine sales could hit its lowest figure in five years.

There is less demand now than ever before, with prices expected to stay low for over three years.

The founder of Silicon Valley Bank's Wine Division, Rob McMillan told CNN that he thinks that consumers would get best retail values in 20 years.

As technology and efficiency in terms of harvesting methods keep improving, the harvest of grapes has reaped in better harvests.

However, this mode of operation leads to a lot of wastage, for extra grapes rot and are discarded.

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However, grapes may reach secondary markets, for instance, they may be used in the production of brandy or simply as a grape concentrate. Jeff Bitter, the President of Allied Grape Powers told CNN that he doesn't think that these alternative secondary markets provide positive returns.

"The main cause of oversupply today is the culmination of a few years of slowing wine shipment growth, with an ample 2018 wine grape crop as an exclamation point," Bitter told CNN.

"Until 2015, wine shipments had grown, almost predictively, for two decades. The slowdown in growth has caught the industry by surprise'', he added.

"Since it takes up to five years to bring wine to market from the initial planning stages of planting a vineyard, it makes hitting future demand very complicated. In this case, we overshot demand."

To restore balance in the market, growers in California will need to limit the production of vines, and grapes.

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"With flattening consumer demand for wine, unless vineyard acres are removed, balance will be difficult to find," McMillan told CNN.&nbsp;

"Balance will first be found in Napa, followed by other premium regions in California. It will take at least 2-3 years for grape pricing to stabilise."

Consumption of wine in the United States witnessed its first drop in 25 years, as people are increasingly turning to hard liquor and cocktails, reported IWSR.

"The industry should rightly be concerned," McMillan said. "We aren't engaging with the millennial consumer, and boomers who have driven wine sales for the last 30 years won't live forever."

It's possible that millennials prefer other drinks over wine. However, the improved value of wine could improve the consumption of wine. 
&nbsp;

The prices of wine may decrease very soon, owing to the surplus of California grapes, CNN reported. Wine sales could hit its lowest figure in five years. There is less demand now than ever before, with prices expected to stay low for over three years.

The prices of wine may decrease very soon, owing to the surplus of California grapes, CNN reported. Wine sales could hit its lowest figure in five years. There is less demand now than ever before, with prices expected to stay low for over three years. The founder of Silicon Valley Bank's Wine Division, Rob McMillan told CNN that he thinks that consumers would get best retail values in 20 years. As technology and efficiency in terms of harvesting methods keep improving, the harvest of grapes has reaped in better harvests. However, this mode of operation leads to a lot of wastage, for extra grapes rot and are discarded. However, grapes may reach secondary markets, for instance, they may be used in the production of brandy or simply as a grape concentrate. Jeff Bitter, the President of Allied Grape Powers told CNN that he doesn't think that these alternative secondary markets provide positive returns. "The main cause of oversupply today is the culmination of a few years of slowing wine shipment growth, with an ample 2018 wine grape crop as an exclamation point," Bitter told CNN. "Until 2015, wine shipments had grown, almost predictively, for two decades. The slowdown in growth has caught the industry by surprise'', he added. "Since it takes up to five years to bring wine to market from the initial planning stages of planting a vineyard, it makes hitting future demand very complicated. In this case, we overshot demand." To restore balance in the market, growers in California will need to limit the production of vines, and grapes. "With flattening consumer demand for wine, unless vineyard acres are removed, balance will be difficult to find," McMillan told CNN. "Balance will first be found in Napa, followed by other premium regions in California. It will take at least 2-3 years for grape pricing to stabilise." Consumption of wine in the United States witnessed its first drop in 25 years, as people are increasingly turning to hard liquor and cocktails, reported IWSR. "The industry should rightly be concerned," McMillan said. "We aren't engaging with the millennial consumer, and boomers who have driven wine sales for the last 30 years won't live forever." It's possible that millennials prefer other drinks over wine. However, the improved value of wine could improve the consumption of wine.

Grape surplus triggers freefall in wine prices

The world's third largest economy, Japan is facing its worst economic slump in over five years, with new factors like coronavirus contributing to its slowdown.

Recently, the country's Gross Domestic Product (GDP) fell by 6.3 per cent during October-December. In fact, this is the biggest GDP shrinkage since the second quarter of 2014.

Also read: <a class="gs-title" data-ctorig="https://www.wionews.com/world/virus-spreads-on-ship-in-japan-american-passengers-set-to-disembark-280966" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/virus-spreads-on-ship-in-japan-american-passengers-set-to-disembark-280966&amp;sa=U&amp;ved=2ahUKEwjR7fnlk9jnAhXhlOAKHVw3D2gQFjAAegQIABAB&amp;usg=AOvVaw26vAuR60RxpAbHbv5kaX43" dir="ltr" href="https://www.wionews.com/world/virus-spreads-on-ship-in-japan-american-passengers-set-to-disembark-280966" target="_blank">Virus spreads on ship in Japan</a>

Private consumption sank by 2.9 per cent while capital expenditure fell by 3.7 per cent.

The Japanese economy shrunk at its fastest rate in over five years. Additionally, factors like sales tax hike influenced consumers, further limiting business spending.

Recent environmental disasters also affected private consumption. Japan is highly susceptible to natural disasters, with tsunami warnings coming up every few days.

To make the situation worse, coronavirus risks have worsened Japan's growth forecast.

The outbreak has hit the tourism industry and led to a decline in production.

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However, Japan which is facing the risk of a recession is hoping to contain the outbreak before the Tokyo Olympics which will start in July this year.

Just recently, Typhoon Hagibis ravaged the country and caused huge losses. As soon as the recovery was on track, coronavirus fears have slowed down the global flow of goods and services.

In case Japan's economy continues to shrink in the first quarter of 2020, they will officially fall into recession, their first major dip since 2015.

Also read: <a class="gs-title" data-ctorig="https://www.wionews.com/world/latest-world-news-another-70-people-test-positive-for-coronavirus-on-diamond-princess-cruise-ship-in-japan-280913" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/latest-world-news-another-70-people-test-positive-for-coronavirus-on-diamond-princess-cruise-ship-in-japan-280913&amp;sa=U&amp;ved=2ahUKEwiGvsnwk9jnAhULUt8KHRe_Db0QFjAAegQIBBAC&amp;usg=AOvVaw0R2qa5LQMZ67_w-xxvhJsl" dir="ltr" href="https://www.wionews.com/world/latest-world-news-another-70-people-test-positive-for-coronavirus-on-diamond-princess-cruise-ship-in-japan-280913" target="_blank">Another 70 people test positive for coronavirus</a>

Japan is the hardest hit by coronavirus trade limitations as China is its largest trading partner.

The country has the largest non-Chinese cases of coronavirus, standing at 400, with its first virus-induced death recorded last week.

Japan experienced a similar slowdown in 2011, after an earthquake triggered a tsunami which caused a nuclear meltdown.

The world's third largest economy, Japan is facing its worst economic slump in over five years, with new factors like coronavirus contributing to its slowdown. Recently, the country's Gross Domestic Product (GDP) fell by 6.

The world's third largest economy, Japan is facing its worst economic slump in over five years, with new factors like coronavirus contributing to its slowdown. Recently, the country's Gross Domestic Product (GDP) fell by 6.3 per cent during October-December. In fact, this is the biggest GDP shrinkage since the second quarter of 2014. Also read: Virus spreads on ship in Japan Private consumption sank by 2.9 per cent while capital expenditure fell by 3.7 per cent. The Japanese economy shrunk at its fastest rate in over five years. Additionally, factors like sales tax hike influenced consumers, further limiting business spending. Recent environmental disasters also affected private consumption. Japan is highly susceptible to natural disasters, with tsunami warnings coming up every few days. To make the situation worse, coronavirus risks have worsened Japan's growth forecast. The outbreak has hit the tourism industry and led to a decline in production. However, Japan which is facing the risk of a recession is hoping to contain the outbreak before the Tokyo Olympics which will start in July this year. Just recently, Typhoon Hagibis ravaged the country and caused huge losses. As soon as the recovery was on track, coronavirus fears have slowed down the global flow of goods and services. In case Japan's economy continues to shrink in the first quarter of 2020, they will officially fall into recession, their first major dip since 2015. Also read: Another 70 people test positive for coronavirus Japan is the hardest hit by coronavirus trade limitations as China is its largest trading partner. The country has the largest non-Chinese cases of coronavirus, standing at 400, with its first virus-induced death recorded last week. Japan experienced a similar slowdown in 2011, after an earthquake triggered a tsunami which caused a nuclear meltdown.

Japan records slowest economy in over five years as coronavirus halts trade with its biggest partner, China

Yesterday, during the State of the Union address, Donald Trump made multiple claims about the booming economy, decreased unemployment, increased inequality. Here, we fact check all his claims!

Trump claimed that more than seven million jobs have been added to the US economy since he became the president.

As part of his ''Great American comeback'' plan, Trump is outlining how he has not only improved the economy, but also revitalised it.

"My fellow citizens: three years ago, we launched the great American comeback. Tonight, I stand before you to share the incredible results. Jobs are booming; incomes are soaring; poverty is plummeting; crime is falling; confidence is surging, and our country is thriving and highly respected again'', Trump had announced during his speech.

Also read:&nbsp;<a href="https://www.wionews.com/world/us-president-donald-trump-acquitted-of-impeachment-charges-in-republican-majority-senate-278933">US President Donald Trump acquitted of impeachment charges in Republican-majority Senate</a>

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Have jobs really been added? 
As per data, the United States had been experiencing steady growth in jobs and income years before Trump came to power.

In fact, 35 months before he took office, the economy added eight million jobs.

And 35 months since Trump took office, only 6.7 million new jobs have been created, FactCheck reported.

Based on this data, it seems like job growth has declined instead of improving.

Also read:&nbsp;<a href="https://www.wionews.com/world/donald-trump-blasts-new-york-city-for-protecting-alien-who-killed-a-92-year-old-woman-278791" hreflang="en">Donald Trump blasts New York City for protecting 'alien' who killed a 92-year-old woman</a> 
 
The lowest unemployment rate in over half a century? 
The US president claimed that the current unemployment rate is the lowest in over half a century. In December last year, it was 3.5 per cent.

If figures are to believed, the unemployment rate was down to 4.7 per cent by the time he took office. This is well below the historical norm of 5.6 per cent which has remained the median monthly rate in the US, every month since 1948. 
 
In essence, it seems like Trump may be taking credit for a boom that began under the Obama administration.

Also read:&nbsp;<a href="https://www.wionews.com/world/State-of-the-Union-address-us-house-speaker-nancy-pelosi-tears-up-text-as-trump-ends-state-of-the-union-address-278666">US House Speaker Nancy Pelosi tears up text as Trump ends State of the Union address</a> 
&nbsp;

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Is the economy booming? 
Recently, the US president claimed that the economy is the best it has ever been.

However, as per the recent official estimate, the American GDP grew by 2.3 per cent last year, compared to 2.9 per cent growth in 2018. The figure was the same in 2015, which was long before Trump's tenure began.

Even then, it's a lot lesser compared to previous administrations. In 2004, the rate was 3.8 per cent while in 2005 it was 3.5 per cent.

In fact, for the year 2020, economists predict that the US GDP will grow only by 1.9 per cent.

Also read:&nbsp;<a href="https://www.wionews.com/world/latest-donald-trump-update-news-our-borders-are-secure-our-values-are-renewed-%20Trump-in-State-of-the-Union-address" hreflang="en">Maduro an illegitimate ruler, a tyrant who brutalizes his people: Trump in State of the Union address</a> 
&nbsp;

Have the wages increased? 
Trump also claimed that Americans are earning higher wages. However, according to the Bureau of Labour Statistics, Trump's claims that wages in the US are rising quickly after decades of falling income is false.

In fact, during Obama's last four years in office, average weekly earnings went up by 4.9 per cent.

When Bush Junior was in power, the weekly earnings increased by 4.2 per cent.

With Trump in office, the wages have gone up only by 2.6 per cent.

<a href="https://www.wionews.com/world/explained-what-is-the-state-of-the-union-address-278582" hreflang="en">EXPLAINED: What is the State of the Union address</a>

The data has been compiled from several economic surveys and statistics released by US government agencies.

Yesterday, during the State of the Union address, Donald Trump made multiple claims about the booming economy, decreased unemployment, increased inequality. Here, we fact check all his claims!

Yesterday, during the State of the Union address, Donald Trump made multiple claims about the booming economy, decreased unemployment, increased inequality. Here, we fact check all his claims! Trump claimed that more than seven million jobs have been added to the US economy since he became the president. As part of his ''Great American comeback'' plan, Trump is outlining how he has not only improved the economy, but also revitalised it. "My fellow citizens: three years ago, we launched the great American comeback. Tonight, I stand before you to share the incredible results. Jobs are booming; incomes are soaring; poverty is plummeting; crime is falling; confidence is surging, and our country is thriving and highly respected again'', Trump had announced during his speech. Also read: US President Donald Trump acquitted of impeachment charges in Republican-majority Senate Have jobs really been added? As per data, the United States had been experiencing steady growth in jobs and income years before Trump came to power. In fact, 35 months before he took office, the economy added eight million jobs. And 35 months since Trump took office, only 6.7 million new jobs have been created, FactCheck reported. Based on this data, it seems like job growth has declined instead of improving. Also read: Donald Trump blasts New York City for protecting 'alien' who killed a 92-year-old woman The lowest unemployment rate in over half a century? The US president claimed that the current unemployment rate is the lowest in over half a century. In December last year, it was 3.5 per cent. If figures are to believed, the unemployment rate was down to 4.7 per cent by the time he took office. This is well below the historical norm of 5.6 per cent which has remained the median monthly rate in the US, every month since 1948. In essence, it seems like Trump may be taking credit for a boom that began under the Obama administration. Also read: US House Speaker Nancy Pelosi tears up text as Trump ends State of the Union address Is the economy booming? Recently, the US president claimed that the economy is the best it has ever been. However, as per the recent official estimate, the American GDP grew by 2.3 per cent last year, compared to 2.9 per cent growth in 2018. The figure was the same in 2015, which was long before Trump's tenure began. Even then, it's a lot lesser compared to previous administrations. In 2004, the rate was 3.8 per cent while in 2005 it was 3.5 per cent. In fact, for the year 2020, economists predict that the US GDP will grow only by 1.9 per cent. Also read: Maduro an illegitimate ruler, a tyrant who brutalizes his people: Trump in State of the Union address Have the wages increased? Trump also claimed that Americans are earning higher wages. However, according to the Bureau of Labour Statistics, Trump's claims that wages in the US are rising quickly after decades of falling income is false. In fact, during Obama's last four years in office, average weekly earnings went up by 4.9 per cent. When Bush Junior was in power, the weekly earnings increased by 4.2 per cent. With Trump in office, the wages have gone up only by 2.6 per cent. EXPLAINED: What is the State of the Union address The data has been compiled from several economic surveys and statistics released by US government agencies.

More jobs? Booming economy? Fact-checking Trump's claims from State of the Union address

Growth in China's services sector slowed for a second straight month in January, a traditionally busy sales season, hitting a three-month low as companies cut prices and new orders dipped, a private sector survey showed on Wednesday.

The Caixin/Markit services purchasing managers' index (PMI) slowed to 51.8 last month from 52.5 in December, but was still higher than an 8-month low hit in October.

The slowdown in growth suggests the services sector, which accounts for more than half of the economy, faces persistent challenges despite a flurry of stimulus and a U.S.-China trade "Phase 1" deal. The reading is also unlikely to reflect the early impact of the coronavirus crisis that flared in late January, which could weigh heavily on growth.

"China's economic recovery was not strong enough due to limited improvement in demand, and some companies didn't replenish inventories," Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, wrote in a note accompanying the Caixin PMI release.

<h6><img alt="pppp" data-entity-type="file" data-entity-uuid="71b0b06c-a917-4d4c-83a3-036be40625f3" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%282%29_54.jpg" /> 
People sit on the steps outside a luxury hotel on Chang'an Avenue, near Tiananmen Square in Beijing, China May 16, 2019 | Reuters</h6>

The index has stayed above the 50-point margin that separates growth from contraction on a monthly basis since late 2005. Beijing has been counting on a strong services sector to cushion a prolonged slowdown in manufacturing and investment and create jobs for workers laid-off in other areas.

Economic growth has cooled to near 30-year lows amid sluggish demand at home and abroad.

The cooling trend in the private sector survey, which focuses more on small, export-oriented companies, contrasts with the official non-manufacturing PMI, which showed the sector's activity quickened in January.

Services companies reported a smaller rise in the volume of new work in January and continued to face higher fuel and labour costs. Demand softened at home, while new orders from overseas picked up modestly from the previous month.

The pace of job creation almost stalled, with the employment sub-index hitting the lowest level in 16 months. Meanwhile, firms had to lower their selling prices for the second time, squeezing companies' profit margins.

But their expectations regarding the one-year outlook for business activity improved notably in the month, as the "Phase 1" trade deal with the United States eased some of the pressure on exporters.

However, a coronavirus outbreak that has abruptly limited the movement of millions of people and forced the closures of restaurants, malls, and movie theatres across the country during the week-long Lunar New Year holiday, is likely to further darken the outlook for China's slowing economy.

Also read:<a href="https://www.wionews.com/business-economy/india-china-to-account-for-nearly-35-of-global-gdp-in-2060-study-278393">&nbsp;India, China to account for nearly 35% of global GDP in 2060: Study</a>

Analysts have noted the deepening coronavirus crisis, which is expected to be as much as two or three times worse than the SARS outbreak, will potentially add to industry headaches.

"As during the SARS episode, we expect consumption and travel to take the hardest hit," Analysts at Oxford Economics said in a note.

"But we also expect that there will be significant disruption to other economic activities, though to a lesser degree than the impact on consumption."

Analysts like CEBM Group's Zhong have urged policymakers to take swift action to cushion to hit to growth from the virus.

"As the current pneumonia epidemic is putting pressure on the economy, policymakers need to make efforts to ensure no major disruptions to improving business confidence," he said.

Caixin's composite manufacturing and services PMI, also released on Wednesday, slowed to 51.9 in January from 52.6 in December.

Growth in China's services sector slowed for a second straight month in January, a traditionally busy sales season, hitting a three-month low as companies cut prices and new orders dipped, a private sector survey showed on Wednesday.

Growth in China's services sector slowed for a second straight month in January, a traditionally busy sales season, hitting a three-month low as companies cut prices and new orders dipped, a private sector survey showed on Wednesday. The Caixin/Markit services purchasing managers' index (PMI) slowed to 51.8 last month from 52.5 in December, but was still higher than an 8-month low hit in October. The slowdown in growth suggests the services sector, which accounts for more than half of the economy, faces persistent challenges despite a flurry of stimulus and a U.S.-China trade "Phase 1" deal. The reading is also unlikely to reflect the early impact of the coronavirus crisis that flared in late January, which could weigh heavily on growth. "China's economic recovery was not strong enough due to limited improvement in demand, and some companies didn't replenish inventories," Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, wrote in a note accompanying the Caixin PMI release. People sit on the steps outside a luxury hotel on Chang'an Avenue, near Tiananmen Square in Beijing, China May 16, 2019 | Reuters The index has stayed above the 50-point margin that separates growth from contraction on a monthly basis since late 2005. Beijing has been counting on a strong services sector to cushion a prolonged slowdown in manufacturing and investment and create jobs for workers laid-off in other areas. Economic growth has cooled to near 30-year lows amid sluggish demand at home and abroad. The cooling trend in the private sector survey, which focuses more on small, export-oriented companies, contrasts with the official non-manufacturing PMI, which showed the sector's activity quickened in January. Services companies reported a smaller rise in the volume of new work in January and continued to face higher fuel and labour costs. Demand softened at home, while new orders from overseas picked up modestly from the previous month. The pace of job creation almost stalled, with the employment sub-index hitting the lowest level in 16 months. Meanwhile, firms had to lower their selling prices for the second time, squeezing companies' profit margins. But their expectations regarding the one-year outlook for business activity improved notably in the month, as the "Phase 1" trade deal with the United States eased some of the pressure on exporters. However, a coronavirus outbreak that has abruptly limited the movement of millions of people and forced the closures of restaurants, malls, and movie theatres across the country during the week-long Lunar New Year holiday, is likely to further darken the outlook for China's slowing economy. Also read: India, China to account for nearly 35% of global GDP in 2060: Study Analysts have noted the deepening coronavirus crisis, which is expected to be as much as two or three times worse than the SARS outbreak, will potentially add to industry headaches. "As during the SARS episode, we expect consumption and travel to take the hardest hit," Analysts at Oxford Economics said in a note. "But we also expect that there will be significant disruption to other economic activities, though to a lesser degree than the impact on consumption." Analysts like CEBM Group's Zhong have urged policymakers to take swift action to cushion to hit to growth from the virus. "As the current pneumonia epidemic is putting pressure on the economy, policymakers need to make efforts to ensure no major disruptions to improving business confidence," he said. Caixin's composite manufacturing and services PMI, also released on Wednesday, slowed to 51.9 in January from 52.6 in December.

China's services sector growth hits three-month low in January

Some good news for the Indian economy. For the month of January, manufacturing in India has expanded at its quickest pace in nearly eight years. WION's Palki Sharma has the details.

Gravitas: India's manufacturing activity touches a new high

On February 1, 2020, the Union Finance Budget was introduced in the Lok Sabha by the Finance Minister of India, Nirmala Sitharaman. Before the introduction of the budget, the main issues concerning the economy were the decline in consumer spending and investments. The government has aimed to remedy these problems by bringing changes in the taxation structure and by providing for disinvestment in government-owned assets with the objective of infusing more money in the economy. This is definitely a bold step taken by the Ministry of Finance to spur the economy back on track.&nbsp;

An attempt has been made by the government to place more money in the hands of the general public and certain specific policies have been introduced by placing a few key sectors into prominence. The Agricultural, Rural Sectors along with the Infrastructure Sector, coupled with new policies of taxation and disinvestment have prominently been placed in the budget to accomplish the objectives of the government.

Agricultural and Rural Sectors

In the budget presented for the fiscal year 2020-2021, Agricultural and Rural sectors have been allotted a total of Rs.2.83 lakh crores, out of which, Rs.1.6 lakh crores are being dedicated to the betterment of irrigation facilities available to the farmers and Rs.1.23 lakh crores being allotted for rural development. Specific yojanas such as the PM-KUSUM have been revisited and subsequently strengthened by enlarging the applicability of the Yojna to twenty lakh farmers and by providing for additional benefits under the aforementioned Scheme. In addition to this, the budget has additionally come to the help of the farmers by providing for Krishi Rail Services and Krishi Udaan Services, through which the transportation of perishable goods has been aimed to be bolstered. The government has also focussed on the 'blue economy' of the country by aiming to involve the youth of the country in the fishery sector by providing for 3477 Sagar Mitras and 500 fish farmer organisations, aiming to increase the export of the aforementioned sector to Rs.1 lakh crore by 2024-2025.&nbsp;

Taxation

There are major changes to the taxation sector of the economy by the government by revamping the income tax slabs, applicable earlier. Under the new scheme, two additional sub-divisions in the taxation bracket have been introduced by bifurcating the tax bracket. The tax rates that were applicable at 20 per cent for income slab between Rs.5 lakhs to Rs.10 lakhs under the old scheme has been revisited by the government at 10 per cent for income slab between Rs.5 lakhs to Rs.7.5 lakhs. Similarly, for Income slab between Rs.7.5 lakhs to Rs.10 lakhs, a tax rate has been fixed at 15 per cent. Likewise, the tax rate applicable for the income slab of Rs.10 Lakhs to Rs. 15 Lakhs was at 30 per cent under the old scheme has been changed to 20 per cent for the income slab of Rs.10 lakhs to Rs.12.5 lakhs and 25 per cent for the income slab of Rs.12.5 lakhs to Rs.15 lakhs.&nbsp;

Additional provisions have been made wherein the tax assessees have the option of subscribing to the old tax rates in case they want to claim certain benefits, but in order to claim the benefit of the new tax brackets, assessees would have to conform to the new scheme. &nbsp;

The government has also brought a notable change by changing the applicability of Dividend Distribution Tax. The tax was earlier imposed on companies but is now liable to be paid by individuals. In another boost to the companies, the threshold for exemption on the taxes payable by startups on the profits has been increased to Rs.100 crores from Rs.25 crores. Furthermore, previously the exemption on tax on profits of start-ups was limited to three years out of seven assessment years. This has also been proposed to be revamped to seven years out of ten years.&nbsp;

Another welcome change that been brought about by the government through the present Union Budget is that the Deposit Insurance Cover has been increased for the first time since the year 1993 from Rs.1 lakh to Rs.5 lakhs.&nbsp; 
 
WATCH: Budget 2020 - what it means for foreign investors?

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Infrastructure Sector

The government has allocated a total of Rs.100 lakh crores to be invested into the sector of infrastructure over the next four years. This has been sought to be materialised by focussing on the development of 100 airports under the 'Udaan Scheme' and the development of 55 new smart cities.&nbsp;

&nbsp;Women and Child Development, Social Welfare

The Union Budget has made an attempt to bolster this section of the society by providing enhanced funds for the citizens falling under this category. The amount allocated to accomplish the objectives of the 'Poshan Abhiyan' stands at Rs.35,600 crores. A task force has been formed to deal with the issue of young women entering into motherhood and their desire to pursue higher education at that stage. The task force is to report back within six months' time with their recommendations. Additionally, Rs. 28,600 crores have been specifically allotted for programmes specific to women.&nbsp;

Moreover, under the head of Social Welfare Sector, the Central Government has allocated Rs.85,000 Crores and Rs.53,700 Crores for Scheduled Class and OBC's and Scheduled Tribes respectively, to honour their commitments towards this section of the society.&nbsp;

Defence Sector

The expenditure of the government on <a href="https://www.wionews.com/opinions-blogs/union-budget-2020-defence-sector-needs-more-money-for-modernisation-278261">defence and its ancillary services </a>has been hiked by 6 per cent from Rs.3.18 lakh crores to Rs.3.37 lakh crores at present. A material change in the form of increased defence pension has been brought about by the Current Union Budget by increasing the defence pension for the defence forces from Rs.1.17 lakh crores to Rs.1.33 lakh crores. Therefore, the total defence budget amounts to Rs.4.7 lakh crores.&nbsp;

In view of the major highlights of the Union Budget as explained above, the government has aimed at increasing the purchasing power of the general public by coming out with such policies and schemes which aim to increase consumer expenditure and subsequently, the volume of investments made in the economy. Overall, the budget presented has focused on some key areas of the economy and&nbsp;society. Efficient utilisation of the allocated resources will lead to the accomplishment of socio-economic objectives of the government.&nbsp; 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;

On February 1, 2020, the Union Finance Budget was introduced in the Lok Sabha by the Finance Minister of India, Nirmala Sitharaman. Before the introduction of the budget, the main issues concerning the economy were the decline in consumer spending and investments.

On February 1, 2020, the Union Finance Budget was introduced in the Lok Sabha by the Finance Minister of India, Nirmala Sitharaman. Before the introduction of the budget, the main issues concerning the economy were the decline in consumer spending and investments. The government has aimed to remedy these problems by bringing changes in the taxation structure and by providing for disinvestment in government-owned assets with the objective of infusing more money in the economy. This is definitely a bold step taken by the Ministry of Finance to spur the economy back on track. An attempt has been made by the government to place more money in the hands of the general public and certain specific policies have been introduced by placing a few key sectors into prominence. The Agricultural, Rural Sectors along with the Infrastructure Sector, coupled with new policies of taxation and disinvestment have prominently been placed in the budget to accomplish the objectives of the government. Agricultural and Rural Sectors In the budget presented for the fiscal year 2020-2021, Agricultural and Rural sectors have been allotted a total of Rs.2.83 lakh crores, out of which, Rs.1.6 lakh crores are being dedicated to the betterment of irrigation facilities available to the farmers and Rs.1.23 lakh crores being allotted for rural development. Specific yojanas such as the PM-KUSUM have been revisited and subsequently strengthened by enlarging the applicability of the Yojna to twenty lakh farmers and by providing for additional benefits under the aforementioned Scheme. In addition to this, the budget has additionally come to the help of the farmers by providing for Krishi Rail Services and Krishi Udaan Services, through which the transportation of perishable goods has been aimed to be bolstered. The government has also focussed on the 'blue economy' of the country by aiming to involve the youth of the country in the fishery sector by providing for 3477 Sagar Mitras and 500 fish farmer organisations, aiming to increase the export of the aforementioned sector to Rs.1 lakh crore by 2024-2025. Taxation There are major changes to the taxation sector of the economy by the government by revamping the income tax slabs, applicable earlier. Under the new scheme, two additional sub-divisions in the taxation bracket have been introduced by bifurcating the tax bracket. The tax rates that were applicable at 20 per cent for income slab between Rs.5 lakhs to Rs.10 lakhs under the old scheme has been revisited by the government at 10 per cent for income slab between Rs.5 lakhs to Rs.7.5 lakhs. Similarly, for Income slab between Rs.7.5 lakhs to Rs.10 lakhs, a tax rate has been fixed at 15 per cent. Likewise, the tax rate applicable for the income slab of Rs.10 Lakhs to Rs. 15 Lakhs was at 30 per cent under the old scheme has been changed to 20 per cent for the income slab of Rs.10 lakhs to Rs.12.5 lakhs and 25 per cent for the income slab of Rs.12.5 lakhs to Rs.15 lakhs. Additional provisions have been made wherein the tax assessees have the option of subscribing to the old tax rates in case they want to claim certain benefits, but in order to claim the benefit of the new tax brackets, assessees would have to conform to the new scheme. The government has also brought a notable change by changing the applicability of Dividend Distribution Tax. The tax was earlier imposed on companies but is now liable to be paid by individuals. In another boost to the companies, the threshold for exemption on the taxes payable by startups on the profits has been increased to Rs.100 crores from Rs.25 crores. Furthermore, previously the exemption on tax on profits of start-ups was limited to three years out of seven assessment years. This has also been proposed to be revamped to seven years out of ten years. Another welcome change that been brought about by the government through the present Union Budget is that the Deposit Insurance Cover has been increased for the first time since the year 1993 from Rs.1 lakh to Rs.5 lakhs. WATCH: Budget 2020 - what it means for foreign investors? × Infrastructure Sector The government has allocated a total of Rs.100 lakh crores to be invested into the sector of infrastructure over the next four years. This has been sought to be materialised by focussing on the development of 100 airports under the 'Udaan Scheme' and the development of 55 new smart cities. Women and Child Development, Social Welfare The Union Budget has made an attempt to bolster this section of the society by providing enhanced funds for the citizens falling under this category. The amount allocated to accomplish the objectives of the 'Poshan Abhiyan' stands at Rs.35,600 crores. A task force has been formed to deal with the issue of young women entering into motherhood and their desire to pursue higher education at that stage. The task force is to report back within six months' time with their recommendations. Additionally, Rs. 28,600 crores have been specifically allotted for programmes specific to women. Moreover, under the head of Social Welfare Sector, the Central Government has allocated Rs.85,000 Crores and Rs.53,700 Crores for Scheduled Class and OBC's and Scheduled Tribes respectively, to honour their commitments towards this section of the society. Defence Sector The expenditure of the government on defence and its ancillary services has been hiked by 6 per cent from Rs.3.18 lakh crores to Rs.3.37 lakh crores at present. A material change in the form of increased defence pension has been brought about by the Current Union Budget by increasing the defence pension for the defence forces from Rs.1.17 lakh crores to Rs.1.33 lakh crores. Therefore, the total defence budget amounts to Rs.4.7 lakh crores. In view of the major highlights of the Union Budget as explained above, the government has aimed at increasing the purchasing power of the general public by coming out with such policies and schemes which aim to increase consumer expenditure and subsequently, the volume of investments made in the economy. Overall, the budget presented has focused on some key areas of the economy and society. Efficient utilisation of the allocated resources will lead to the accomplishment of socio-economic objectives of the government. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Union Budget 2020: Government has taken bold steps to put economy back on track

India’s manufacturing activity has expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, indicating an initial recovery in the demand in the Indian economy.

This comes at a time when there has been widespread concern over the economic slowdown.

The manufacturing Purchasing Managers’ Index or PMI for India shot up to 55.3 in January from 52.7 in December. This is the highest reading since February 2012.

The recovery also suggests the economy may be getting back on firmer footing as initial growth has been registered in the new business sector.

According to a private survey by data analytics firm IHS Markit, hiring activity has also improved in January, with firms increasing employment at the fastest rate in close to seven-and-a-half years.

Also read: <a href="https://www.wionews.com/india-news/indian-economy-experienced-abrupt-slowdown-in-2019-but-its-not-in-a-recession-imf-md-277892">Indian economy experienced abrupt slowdown in 2019, but it’s not in a recession - IMF MD</a>

A figure above 50 indicates expansion, however, anything lower signals contraction.

The survey tracked new orders, output, jobs, suppliers’ delivery time, and stocks of purchases at around 400 manufacturers.

The modest growth in manufacturing indicator comes in the backdrop of improvements in several leading indicators, including goods and services tax (GST) collection and core sector industries.

In response to the jump in sales, factories also hired new workers at the fastest rate in more than seven years.

Meanwhile, both input costs and output prices rose at a slower pace, indicating overall inflation may have eased after hitting a more than five year high of 7.35 per cent in December.

This might keep the central bank, which cut its key interest rate by a cumulative 135 basis points last year, on the sidelines over the coming months.

India’s manufacturing activity has expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, indicating an initial recovery in the demand in the Indian economy.

India’s manufacturing activity has expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, indicating an initial recovery in the demand in the Indian economy. This comes at a time when there has been widespread concern over the economic slowdown. The manufacturing Purchasing Managers’ Index or PMI for India shot up to 55.3 in January from 52.7 in December. This is the highest reading since February 2012. The recovery also suggests the economy may be getting back on firmer footing as initial growth has been registered in the new business sector. According to a private survey by data analytics firm IHS Markit, hiring activity has also improved in January, with firms increasing employment at the fastest rate in close to seven-and-a-half years. Also read: Indian economy experienced abrupt slowdown in 2019, but it’s not in a recession - IMF MD A figure above 50 indicates expansion, however, anything lower signals contraction. The survey tracked new orders, output, jobs, suppliers’ delivery time, and stocks of purchases at around 400 manufacturers. The modest growth in manufacturing indicator comes in the backdrop of improvements in several leading indicators, including goods and services tax (GST) collection and core sector industries. In response to the jump in sales, factories also hired new workers at the fastest rate in more than seven years. Meanwhile, both input costs and output prices rose at a slower pace, indicating overall inflation may have eased after hitting a more than five year high of 7.35 per cent in December. This might keep the central bank, which cut its key interest rate by a cumulative 135 basis points last year, on the sidelines over the coming months.

India's January manufacturing activity hits nearly 8-year high 

Yesterday,&nbsp; We. 
 
Starting February 18, Mathrani will replace co-CEOs Sebastian Gunningham and Artie Minson.

Reuters reported that Mathrani will start working under WeWork’s Executive Chairman Marcelo Claure.

The co-CEOs Gunningham and Minson are expected to stay on-board the company roster for some more time, as WeWork undergoes a major transition.

The new CEO was appointed internally, ie, without an external executive search firm getting involved in the process. Reports say that a couple of search firms were considered initially but dropped.

<h6><img alt="pp" data-entity-type="file" data-entity-uuid="db86404e-6b91-44ae-9d3c-8a604ef62863" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%284%29_27.jpg" /> 
A WeWork office is seen in New York City on July 19, 2019 | AFP</h6>

 
Mathrani previously served as the chief executive of Brookfield Properties' retail group, before which he served as an executive at real estate firms like Vornado Realty Trust.

In early December, Brookfield had announced the departure of Mathrani, with January 31 as his last day. 
 
WeWork co-founder Adam Neumann left the company in November after drawing criticism for his management style.

According to Reuters, WeWork’s IPO was removed last year and the company recorded a steep decrease in valuation, to less than $8 billion from $47 billion.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/softbanks-3-billion-wework-financing-talks-stall-with-japan-banks-sources-269735">SoftBank's $3 billion WeWork financing talks stall with Japan banks</a>

(With inputs from Reuters)

Yesterday, We. Starting February 18, Mathrani will replace co-CEOs Sebastian Gunningham and Artie Minson. Reuters reported that Mathrani will start working under WeWork’s Executive Chairman Marcelo Claure.

Yesterday, We. Starting February 18, Mathrani will replace co-CEOs Sebastian Gunningham and Artie Minson. Reuters reported that Mathrani will start working under WeWork’s Executive Chairman Marcelo Claure. The co-CEOs Gunningham and Minson are expected to stay on-board the company roster for some more time, as WeWork undergoes a major transition. The new CEO was appointed internally, ie, without an external executive search firm getting involved in the process. Reports say that a couple of search firms were considered initially but dropped. A WeWork office is seen in New York City on July 19, 2019 | AFP Mathrani previously served as the chief executive of Brookfield Properties' retail group, before which he served as an executive at real estate firms like Vornado Realty Trust. In early December, Brookfield had announced the departure of Mathrani, with January 31 as his last day. WeWork co-founder Adam Neumann left the company in November after drawing criticism for his management style. According to Reuters, WeWork’s IPO was removed last year and the company recorded a steep decrease in valuation, to less than $8 billion from $47 billion. Also read: SoftBank's $3 billion WeWork financing talks stall with Japan banks (With inputs from Reuters)

Sandeep Mathrani set to take over as WeWork CEO this month

Finance Minister <a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Nirmala Sitharaman </a>will on Saturday present the budget of the second term of the <a href="https://www.wionews.com/india-news/pm-modi-netanyahu-exchange-pleasantries-on-28th-anniversary-of-establishment-of-india-israel-diplomatic-ties-277605">Narendra Modi</a> government.

This will also be the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India.

<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Sitharaman </a>will present the full-year budget for the year ending March 2021.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">'Feel good' budget may see cut in tax rate, sops for social sectors</a>

The Budget speech will begin at around 11 am today with Sitharaman beginning it with an address to the speaker of Lok Sabha. Usually, the duration of the presentation ranges from 90 to 120 minutes.

The Finance Minister on Friday tabled in Parliament the pre-Budget Economic Survey for 2019-20, which projected the state of the economy and outlined its challenges.

The survey was released by Chief Economic Adviser Krishnamurthy Subramanian.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/briefcase-or-bahi-khata-what-will-sitharaman-carry-for-her-second-budget-presentation-277851">What will Sitharaman carry for her second budget presentation?</a>

The Union Budget is the financial statement of the government, detailing its revenue and expenditure in the past, as well as estimated spending and projections for the coming year.

<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Sitharaman </a>had presented her maiden budget in July last year, shortly after the BJP-led government came back to power in the Centre in the 2019 Lok Sabha elections.

Till 2016, the <a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Union Budget </a>was presented on the last working day of February.

Former finance minister Arun Jaitley had changed the tradition in 2017 when the Union Budget was presented on February 1.

Finance Minister Nirmala Sitharaman will on Saturday present the budget of the second term of the Narendra Modi government. This will also be the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India.

Finance Minister Nirmala Sitharaman will on Saturday present the budget of the second term of the Narendra Modi government. This will also be the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India. Sitharaman will present the full-year budget for the year ending March 2021. Also read: 'Feel good' budget may see cut in tax rate, sops for social sectors The Budget speech will begin at around 11 am today with Sitharaman beginning it with an address to the speaker of Lok Sabha. Usually, the duration of the presentation ranges from 90 to 120 minutes. The Finance Minister on Friday tabled in Parliament the pre-Budget Economic Survey for 2019-20, which projected the state of the economy and outlined its challenges. The survey was released by Chief Economic Adviser Krishnamurthy Subramanian. Also read: What will Sitharaman carry for her second budget presentation? The Union Budget is the financial statement of the government, detailing its revenue and expenditure in the past, as well as estimated spending and projections for the coming year. Sitharaman had presented her maiden budget in July last year, shortly after the BJP-led government came back to power in the Centre in the 2019 Lok Sabha elections. Till 2016, the Union Budget was presented on the last working day of February. Former finance minister Arun Jaitley had changed the tradition in 2017 when the Union Budget was presented on February 1.

Nirmala Sitharaman to present budget in Parliament today

The Indian economy experienced some abrupt slowdown in 2019 due to turbulence in non-banking financial institutions and major reform measures such as GST and demonetisation, but it is not in a recession, International Monetary Fund(IMF) Managing Director Kristalina Georgieva has said.

<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Also read: 'Feel good' budget may see cut in tax rate, sops for social sectors</a>

“The Indian economy indeed has experienced an abrupt slowdown in 2019. We had to revise our growth projections, downwards to 4% for last year. We are expecting 5.8%(growth rate) in 2020 and then an upward trajectory to 6.5% in 2021,” Georgieva told a group of journalists in Washington on Friday.

Also read:&nbsp;<a href="http://wionews.com/business-economy/briefcase-or-bahi-khata-what-will-sitharaman-carry-for-her-second-budget-presentation-277851">Briefcase or 'bahi-khata'&nbsp;- What will Sitharaman carry for her second budget presentation?</a>

“It appears that the main reason for this slowdown was the non-banking financial institutions experiencing a turbulence,” she said on the eve of Union Finance Minister Nirmala Sitharaman presenting the annual budget in Parliament on Saturday.

She said India had undertaken some important reforms that over the longer term would be beneficial for the country, but they do have some short-term impact.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/budget-news-2020-budget-glossary-here-are-key-terms-you-should-know-to-understand-the-budget-273968">2020 Budget Glossary - Here are key terms you should know to understand the Budget</a>

“For example, coming with the unified tax system, and the demonetisation took place. These are steps that over time are beneficial, but of course they might be somewhat disruptive over short term,” Georgieva said in response to a question.

The IMF MD said that there is not a lot of fiscal space in India. But we also recognise that the policies of the government on that side, on the fiscal side have been prudent.

We will see how the reading of the budget, the submission of the budget goes, tomorrow, she said. In the medium-term, she said, the IMF remains optimistic about India. This is why we see that upswing potential for the growth in the country, she said.

Georgieva said that the current economic slowdown cannot be described as a recession.

She noted that the consumption in India also slowed down and that contributed to the overall slowdown in the economy. The IMF would be keen to see what India does to get relatively sound macroeconomic fundamentals to pay off in terms of better growth trajectory, she said ahead of the budget.

The Indian economy experienced some abrupt slowdown in 2019 due to turbulence in non-banking financial institutions and major reform measures such as GST and demonetisation, but it is not in a recession, International Monetary Fund(IMF) Managing Director Kristalina Georgieva has said.

The Indian economy experienced some abrupt slowdown in 2019 due to turbulence in non-banking financial institutions and major reform measures such as GST and demonetisation, but it is not in a recession, International Monetary Fund(IMF) Managing Director Kristalina Georgieva has said. Also read: 'Feel good' budget may see cut in tax rate, sops for social sectors “The Indian economy indeed has experienced an abrupt slowdown in 2019. We had to revise our growth projections, downwards to 4% for last year. We are expecting 5.8%(growth rate) in 2020 and then an upward trajectory to 6.5% in 2021,” Georgieva told a group of journalists in Washington on Friday. Also read: Briefcase or 'bahi-khata' - What will Sitharaman carry for her second budget presentation? “It appears that the main reason for this slowdown was the non-banking financial institutions experiencing a turbulence,” she said on the eve of Union Finance Minister Nirmala Sitharaman presenting the annual budget in Parliament on Saturday. She said India had undertaken some important reforms that over the longer term would be beneficial for the country, but they do have some short-term impact. Also read: 2020 Budget Glossary - Here are key terms you should know to understand the Budget “For example, coming with the unified tax system, and the demonetisation took place. These are steps that over time are beneficial, but of course they might be somewhat disruptive over short term,” Georgieva said in response to a question. The IMF MD said that there is not a lot of fiscal space in India. But we also recognise that the policies of the government on that side, on the fiscal side have been prudent. We will see how the reading of the budget, the submission of the budget goes, tomorrow, she said. In the medium-term, she said, the IMF remains optimistic about India. This is why we see that upswing potential for the growth in the country, she said. Georgieva said that the current economic slowdown cannot be described as a recession. She noted that the consumption in India also slowed down and that contributed to the overall slowdown in the economy. The IMF would be keen to see what India does to get relatively sound macroeconomic fundamentals to pay off in terms of better growth trajectory, she said ahead of the budget.

Indian economy experienced abrupt slowdown in 2019, but it’s not in a recession: IMF MD

Rajya Sabha Chairman <a href="https://www.wionews.com/india-news/make-people-equal-partners-in-development-process-vice-president-venkaiah-naidu-to-ias-officers-249264">M Venkaiah Naidu</a> suggested to all concerned to ensure submission of reports on Demands for Grants of various Ministries by the Department Related Standing Committees (DRSCs) before the <a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">budget</a> is approved by the Parliament.

He said submission of such reports later would not give time for the government to consider the recommendations made by the committees in respect of various ministries.

Naidu spoke on the need for timely submission of reports at a meeting of leaders of various parties in <a href="https://www.wionews.com/india-news/rajya-sabha-passes-citizenship-amendment-bill-267747">Rajya Sabha</a> at his residence coinciding with the start of the budget session.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">'Feel good' budget may see cut in tax rate, sops for social sectors</a>

The Chairman urged Minister of Parliamentary Affairs Prahlad Joshi to talk to all concerned including Chairmen of various committees regarding timely submission of reports on Demands for Grants.

Naidu said he would also speak to the Lok Sabha Speaker <a href="https://www.wionews.com/india-news/lok-sabha-speaker-om-birla-rejects-ministers-demand-says-there-will-be-no-adjournments-238511">Om Birla</a> in this regard.

Naidu reminded the leaders of the good work done by the Rajya Sabha during the last two sessions in terms of the productivity and quality of debates and urged them to ensure the same positive momentum during the budget session.

He said that the session offers ample opportunities to raise and discuss all issues of wider public concern during the long debates on the Motion of Thanks to the President's Address as also discussion on the budget.

Also read: <a href="https://www.wionews.com/business-economy/briefcase-or-bahi-khata-what-will-sitharaman-carry-for-her-second-budget-presentation-277851">What will Sitharaman carry for her second budget presentation?</a>

He also advised leaders to ensure that members belonging to respective parties come prepared to make an effective contribution to the debates in the House.

Voicing his concern over inadequate attendance during the proceedings of the House and in the meetings of various committees, Naidu urged the leaders of various parties to ensure attendance by their Members.

According to an official release, he noted that a situation of lack of quorum should not arise as it reflects poorly on the functioning of legislatures.

Leader of Opposition <a href="https://www.wionews.com/india-general-elections-2019/azad-does-a-u-turn-219356">Ghulam Nabi Azad </a>said the government should be willing to accommodate concerns of the opposition and enable various issues of public concern to be discussed in the House.

Joshi said the government is always willing to discuss any issue as decided by the Chairman.

Rajya Sabha Chairman M Venkaiah Naidu suggested to all concerned to ensure submission of reports on Demands for Grants of various Ministries by the Department Related Standing Committees (DRSCs) before the budget is approved by the Parliament.

Rajya Sabha Chairman M Venkaiah Naidu suggested to all concerned to ensure submission of reports on Demands for Grants of various Ministries by the Department Related Standing Committees (DRSCs) before the budget is approved by the Parliament. He said submission of such reports later would not give time for the government to consider the recommendations made by the committees in respect of various ministries. Naidu spoke on the need for timely submission of reports at a meeting of leaders of various parties in Rajya Sabha at his residence coinciding with the start of the budget session. Also read: 'Feel good' budget may see cut in tax rate, sops for social sectors The Chairman urged Minister of Parliamentary Affairs Prahlad Joshi to talk to all concerned including Chairmen of various committees regarding timely submission of reports on Demands for Grants. Naidu said he would also speak to the Lok Sabha Speaker Om Birla in this regard. Naidu reminded the leaders of the good work done by the Rajya Sabha during the last two sessions in terms of the productivity and quality of debates and urged them to ensure the same positive momentum during the budget session. He said that the session offers ample opportunities to raise and discuss all issues of wider public concern during the long debates on the Motion of Thanks to the President's Address as also discussion on the budget. Also read: What will Sitharaman carry for her second budget presentation? He also advised leaders to ensure that members belonging to respective parties come prepared to make an effective contribution to the debates in the House. Voicing his concern over inadequate attendance during the proceedings of the House and in the meetings of various committees, Naidu urged the leaders of various parties to ensure attendance by their Members. According to an official release, he noted that a situation of lack of quorum should not arise as it reflects poorly on the functioning of legislatures. Leader of Opposition Ghulam Nabi Azad said the government should be willing to accommodate concerns of the opposition and enable various issues of public concern to be discussed in the House. Joshi said the government is always willing to discuss any issue as decided by the Chairman.

Naidu suggests giving reports on Demands for Grants before budget approval

The Wuhan virus outbreak couldn't come at a worse time for China. The disease could pull down a slowing Chinese economy. Even the global economy will feel the pinch. Palki S Upadhyay assess the economic impact of this outbreak.

Gravitas: China virus outbreak could hurt global economy

The <gwmw class="ginger-module-highlighter-mistake-type-1" id="gwmw-15804758428590289701161">coronavirus</gwmw> outbreak in China could start to disrupt India's production of smartphones if it continues to spread in February, as it could delay component shipments, industry executives said.

India is the world's biggest smartphone maker after China but is still largely dependent on China for supplies of parts such as cells, display panels, camera modules and printed circuit boards.

Taiwan's Foxconn and Wistron make iPhones in India for Apple, and Foxconn produces phones there for China's Xiaomi as well. Other smartphone makers in India include <a href="https://www.wionews.com/business-economy/samsung-electronics-third-quarter-net-profit-slumps-52-258964">South Korea's Samsung</a> and China's OnePlus.

So far smartphone makers in India have weathered the impact of the virus, which has already killed 170 people, partly because they had ramped up inventories of Chinese-made parts anyway to cover the Lunar New Year holiday period when China's factories close down.

"Those disruptions were already planned but if it (the virus' spread) gets prolonged then for March and April production we will have serious trouble," said S.N. Rai, the co-founder of homegrown smartphone maker Lava.

"We're definitely worried about it." Some components can be shipped in from markets such as South Korea, Vietnam or Taiwan, but smartphone makers will only make such purchases as a "last resort" as it would force companies to make changes including in design and software, Rai said.

Samsung declined to comment, while Foxconn, Wistron, Apple and Xiaomi did not respond to requests for comment. China's OnePlus said its Indian operations could manage, in the short term at least.

&nbsp;"We are well covered because we have the entire production in India, we already have enough stock, and even going forward many of the components will anyway be coming directly from other markets," said Vikas Agarwal, the India head of OnePlus.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/latest-business-news-apple-prepares-from-for-virus-fallout-samsung-says-it-will-affect-first-quarter-earnings-277547">Apple prepares for Coronavirus fallout, Samsung fears it may affect earnings</a>

While Beijing has expressed confidence in defeating the "devil" virus, which is yet to be declared a global emergency by the World Health Organisation, major companies such as Alphabet Inc's Google and Sweden's IKEA have closed operations in China.

India's Tata Motors, which counts China as a major market for its luxury Jaguar Land Rover cars, said on Thursday it was worried about the coronavirus and warned that the outbreak could hit profits.

As several airlines suspend flights to China, the movement of technical staff from the country - such as on-site support executives, machine and automation specialists - will also be curtailed and that will hit India's smartphone sector, an executive at another foreign-owned smartphone maker, who did not wish to be named, said.

For now, the industry just hopes the outbreak can be contained within the next two weeks. "If the problem persists beyond February 10 then we have a real problem at hand," said Pankaj Mohindroo, head of the India Cellular &amp; Electronics Association, an industry lobby group.

The coronavirus outbreak in China could start to disrupt India's production of smartphones if it continues to spread in February, as it could delay component shipments, industry executives said.

The coronavirus outbreak in China could start to disrupt India's production of smartphones if it continues to spread in February, as it could delay component shipments, industry executives said. India is the world's biggest smartphone maker after China but is still largely dependent on China for supplies of parts such as cells, display panels, camera modules and printed circuit boards. Taiwan's Foxconn and Wistron make iPhones in India for Apple, and Foxconn produces phones there for China's Xiaomi as well. Other smartphone makers in India include South Korea's Samsung and China's OnePlus. So far smartphone makers in India have weathered the impact of the virus, which has already killed 170 people, partly because they had ramped up inventories of Chinese-made parts anyway to cover the Lunar New Year holiday period when China's factories close down. "Those disruptions were already planned but if it (the virus' spread) gets prolonged then for March and April production we will have serious trouble," said S.N. Rai, the co-founder of homegrown smartphone maker Lava. "We're definitely worried about it." Some components can be shipped in from markets such as South Korea, Vietnam or Taiwan, but smartphone makers will only make such purchases as a "last resort" as it would force companies to make changes including in design and software, Rai said. Samsung declined to comment, while Foxconn, Wistron, Apple and Xiaomi did not respond to requests for comment. China's OnePlus said its Indian operations could manage, in the short term at least. "We are well covered because we have the entire production in India, we already have enough stock, and even going forward many of the components will anyway be coming directly from other markets," said Vikas Agarwal, the India head of OnePlus. Also Read: Apple prepares for Coronavirus fallout, Samsung fears it may affect earnings While Beijing has expressed confidence in defeating the "devil" virus, which is yet to be declared a global emergency by the World Health Organisation, major companies such as Alphabet Inc's Google and Sweden's IKEA have closed operations in China. India's Tata Motors, which counts China as a major market for its luxury Jaguar Land Rover cars, said on Thursday it was worried about the coronavirus and warned that the outbreak could hit profits. As several airlines suspend flights to China, the movement of technical staff from the country - such as on-site support executives, machine and automation specialists - will also be curtailed and that will hit India's smartphone sector, an executive at another foreign-owned smartphone maker, who did not wish to be named, said. For now, the industry just hopes the outbreak can be contained within the next two weeks. "If the problem persists beyond February 10 then we have a real problem at hand," said Pankaj Mohindroo, head of the India Cellular & Electronics Association, an industry lobby group.

China virus causes scare for India's smartphone makers

The government on Friday revised downwards the economic growth rate for 2018-19 to 6.1 per cent from 6.8 per cent estimated earlier, mainly due to deceleration in mining, manufacturing and farm sectors.

"Real GDP or GDP at constant (2011-12) prices for the years 2018-19 and 2017-18 stand at Rs 139.81 lakh crore and Rs 131.75 lakh crore, respectively, showing growth of 6.1 per cent during 2018-19 and 7.0 per cent during 2017-18," the National Statistical Office said in revised national account data released on Friday.

Under the first revision released in January 2019, real GDP or GDP at constant (2011-12) prices for 2017-18 was pegged at Rs 131.80 lakh crore, showing a growth of 7.2 per cent.

Also read: <a href="https://www.wionews.com/business-economy/finance-minister-nirmala-sitharaman-tables-economic-survey-in-parliament-gdp-growth-projected-at-6-65-for-2020-21-277715">Finance Minister Nirmala Sitharaman tables Economic Survey in Parliament</a>

"The growth in real GVA (gross value added) during 2018-19 has been lower than that in 2017-18 mainly due to relatively lower growth in Agriculture, Forestry &amp; Fishing', Mining and Quarrying', Manufacturing', Electricity, Gas, Water Supply &amp; Other Utility Services', Financial Services, Public Administration and Defense' and Other Services'," it added.

During 2018-19, at constant prices, the growth rates of primary (comprising agriculture, forestry, fishing and mining &amp; quarrying), secondary (comprising manufacturing, electricity, gas, water supply &amp; other utility services, and construction) and tertiary (services) sectors have been estimated at 1.0 per cent, 6.0 per cent and 7.7 per cent, as against 5.8 per cent, 6.5 per cent and 6.9 per cent, respectively, in the previous year.

Also read: <a href="https://www.wionews.com/business-economy/india-can-end-up-with-5-real-gdp-growth-this-fiscal-chairman-of-pms-economic-advisory-council-277423">India can end up with 5% real GDP growth this fiscal: Chairman of PM's Economic Advisory Council</a>

The Nominal Net National Income (NNI) at current prices for 2018-19 stands at Rs 167.89 lakh crore as against Rs 151.50 lakh crore in 2017-18, showing growth of 10.8 per cent during 2018-19 as against 11.2 per cent in the previous year.

The per capita income, that is per capita net national income at current prices, is estimated as Rs 1,15,293 and Rs 1,26,521 respectively for the years 2017-18 and 2018-19. 
Per capita Private Final Consumption Expenditure (PFCE) at current prices for the years 2017-18 and 2018-19 is estimated at Rs 76,794 and Rs 84,808 respectively.&nbsp;

The government on Friday revised downwards the economic growth rate for 2018-19 to 6.1 per cent from 6.8 per cent estimated earlier, mainly due to deceleration in mining, manufacturing and farm sectors.

The government on Friday revised downwards the economic growth rate for 2018-19 to 6.1 per cent from 6.8 per cent estimated earlier, mainly due to deceleration in mining, manufacturing and farm sectors. "Real GDP or GDP at constant (2011-12) prices for the years 2018-19 and 2017-18 stand at Rs 139.81 lakh crore and Rs 131.75 lakh crore, respectively, showing growth of 6.1 per cent during 2018-19 and 7.0 per cent during 2017-18," the National Statistical Office said in revised national account data released on Friday. Under the first revision released in January 2019, real GDP or GDP at constant (2011-12) prices for 2017-18 was pegged at Rs 131.80 lakh crore, showing a growth of 7.2 per cent. Also read: Finance Minister Nirmala Sitharaman tables Economic Survey in Parliament "The growth in real GVA (gross value added) during 2018-19 has been lower than that in 2017-18 mainly due to relatively lower growth in Agriculture, Forestry & Fishing', Mining and Quarrying', Manufacturing', Electricity, Gas, Water Supply & Other Utility Services', Financial Services, Public Administration and Defense' and Other Services'," it added. During 2018-19, at constant prices, the growth rates of primary (comprising agriculture, forestry, fishing and mining & quarrying), secondary (comprising manufacturing, electricity, gas, water supply & other utility services, and construction) and tertiary (services) sectors have been estimated at 1.0 per cent, 6.0 per cent and 7.7 per cent, as against 5.8 per cent, 6.5 per cent and 6.9 per cent, respectively, in the previous year. Also read: India can end up with 5% real GDP growth this fiscal: Chairman of PM's Economic Advisory Council The Nominal Net National Income (NNI) at current prices for 2018-19 stands at Rs 167.89 lakh crore as against Rs 151.50 lakh crore in 2017-18, showing growth of 10.8 per cent during 2018-19 as against 11.2 per cent in the previous year. The per capita income, that is per capita net national income at current prices, is estimated as Rs 1,15,293 and Rs 1,26,521 respectively for the years 2017-18 and 2018-19. Per capita Private Final Consumption Expenditure (PFCE) at current prices for the years 2017-18 and 2018-19 is estimated at Rs 76,794 and Rs 84,808 respectively.

GDP growth rate for 2018-19 revised downwards to 6.1% from 6.8%

The rupee lost 22 paise to close at a three-week low of 71.49 against the US dollar on Thursday tracking heavy sell-off in domestic equities amid rising concerns over the outbreak of coronavirus.

Forex traders said most Asian currencies declined after the US Federal Reserve kept its key policy rates steady.

Moreover, market participants are also assessing the economic implications of the coronavirus outbreak and awaiting cues from the Union Budget.

At the interbank foreign exchange market, the domestic currency opened weak at 71.39 a dollar. It finally settled for the day lower by 22 paise at 71.49, a level not seen since January 8. On Wednesday, the local unit had closed at 71.27 against the greenback.

Meanwhile, a positive case of novel coronavirus has been reported in Kerala, the Health Ministry said on Thursday. The patient is a student at Wuhan University.

"Rupee fell for the second successive session following rising concerns over the outbreak of coronavirus in China. On the domestic front, market participants have been a little cautious ahead of the important GDP number that will be released tomorrow and Union Budget that is scheduled this weekend," said Gaurang Somaiyaa, Forex &amp; Bullion Analyst, Motilal Oswal Financial Services.

Somaiyaa further said that "the dollar retraced from its highest level in seven weeks after the Federal Reserve, in line with expectation, held rates unchanged. In the next couple of session the USDINR (Spot) to quote in the range of 71.20 and 71.80".

Also read: <a href="https://www.wionews.com/business-economy/sensex-nifty-end-lower-on-coronavirus-fears-metals-drag-277556">Sensex, Nifty end lower on coronavirus fears; metals drag</a>

Meanwhile, the global crude benchmark Brent Futures fell 2.47 per cent to trade at $58.33 per barrel.

Crude prices have seen some moderation in the past few sessions over demand slump amid rising coronavirus cases in China and other regions.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.01 per cent to 97.99.

The 10-year Indian government bond yield was at 6.56 per cent.

On the domestic equity market front, the 30-share BSE Sensex settled 284.84 points, or 0.69 per cent, lower at 40,913.82. It hit an intra-day low of 40,829.91 and a high of 41,380.14. Likewise, the broader NSE Nifty closed 93.70 points, or 0.77 per cent, down at 12,035.80.

Foreign institutional investors sold equities worth Rs 962.28 crore on a net basis on Thursday, according to provisional exchange data.

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.1875 and for rupee/euro at 78.4221. The reference rate for rupee/British pound was fixed at 92.7174 and for rupee/100 Japanese yen at 65.24.&nbsp;

The rupee lost 22 paise to close at a three-week low of 71.49 against the US dollar on Thursday tracking heavy sell-off in domestic equities amid rising concerns over the outbreak of coronavirus.

The rupee lost 22 paise to close at a three-week low of 71.49 against the US dollar on Thursday tracking heavy sell-off in domestic equities amid rising concerns over the outbreak of coronavirus. Forex traders said most Asian currencies declined after the US Federal Reserve kept its key policy rates steady. Moreover, market participants are also assessing the economic implications of the coronavirus outbreak and awaiting cues from the Union Budget. At the interbank foreign exchange market, the domestic currency opened weak at 71.39 a dollar. It finally settled for the day lower by 22 paise at 71.49, a level not seen since January 8. On Wednesday, the local unit had closed at 71.27 against the greenback. Meanwhile, a positive case of novel coronavirus has been reported in Kerala, the Health Ministry said on Thursday. The patient is a student at Wuhan University. "Rupee fell for the second successive session following rising concerns over the outbreak of coronavirus in China. On the domestic front, market participants have been a little cautious ahead of the important GDP number that will be released tomorrow and Union Budget that is scheduled this weekend," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services. Somaiyaa further said that "the dollar retraced from its highest level in seven weeks after the Federal Reserve, in line with expectation, held rates unchanged. In the next couple of session the USDINR (Spot) to quote in the range of 71.20 and 71.80". Also read: Sensex, Nifty end lower on coronavirus fears; metals drag Meanwhile, the global crude benchmark Brent Futures fell 2.47 per cent to trade at $58.33 per barrel. Crude prices have seen some moderation in the past few sessions over demand slump amid rising coronavirus cases in China and other regions. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.01 per cent to 97.99. The 10-year Indian government bond yield was at 6.56 per cent. On the domestic equity market front, the 30-share BSE Sensex settled 284.84 points, or 0.69 per cent, lower at 40,913.82. It hit an intra-day low of 40,829.91 and a high of 41,380.14. Likewise, the broader NSE Nifty closed 93.70 points, or 0.77 per cent, down at 12,035.80. Foreign institutional investors sold equities worth Rs 962.28 crore on a net basis on Thursday, according to provisional exchange data. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.1875 and for rupee/euro at 78.4221. The reference rate for rupee/British pound was fixed at 92.7174 and for rupee/100 Japanese yen at 65.24.

Rupee slides 22 paise to 3-week low on equity rout

India can end up with a real GDP growth of five per cent this financial year excluding the inflation rate, Bibek Debroy, the chairman of PM's Economic Advisory Council said on Friday.

In the present scenario achieving a nine per cent GDP growth will be difficult, he said at the Tata Steel Kolkata Literary Meet.

"The aspirational growth rate could be between 6.5 per cent to 7 per cent. At this stage it will be difficult to attain nine per cent GDP growth," he said.

"This year the growth rate will end at five per cent and this is real and not nominal ... Next year, the GDP growth rate could be anything between 6 to 6.5 per cent," he said.

Also read: <a href="https://www.wionews.com/business-economy/india-forecasts-201920-gdp-growth-rate-at-5-272748">India forecasts 2019/20 GDP growth rate at 5%</a>

Recently IMF had pegged India's GDP growth at 4.8 per cent for 2019-20, much less than its October projection of 6.1 per cent.

Debroy said that Indian economy at present is growing in an environment which is somewhat protectionist and has declining exports.

"The period during which the country grew at high GDP growth rates like nine per cent, the exports-to-GDP ratio was 20 per cent. But now with developed countries resorting to protectionism and after the collapse of the WTO, the contribution of exports to GDP in a large way does not seem possible", he said.

Also read: <a href="https://www.wionews.com/india-news/not-worried-over-slow-gdp-growth-pranab-mukherjee-267778">Not worried over slow GDP growth - Pranab Mukherjee</a>

Debroy said "With India being strong in services and not manufacturing, the country will have to give some to get some. It is a quid pro quo situation particularly in a regional trade bloc kind of arrangement".

On the taxation regime, he said that the country is moving towards a stable direct tax regime without any exemption.

"Goods and Services Tax (GST) is still work in progress. GST was supposed to be revenue-neutral. But the government has lost revenue post-GST implementation, which is not tenable," Debroy said.

He said, "When both direct tax and GST rates get stabilised in future, a day might come when there would be no need to present budgets in the Parliament". 
Regarding the high cost of capital, Debroy said it will continue to be so as it is a scarce resource in India.

India can end up with a real GDP growth of five per cent this financial year excluding the inflation rate, Bibek Debroy, the chairman of PM's Economic Advisory Council said on Friday.

India can end up with a real GDP growth of five per cent this financial year excluding the inflation rate, Bibek Debroy, the chairman of PM's Economic Advisory Council said on Friday. In the present scenario achieving a nine per cent GDP growth will be difficult, he said at the Tata Steel Kolkata Literary Meet. "The aspirational growth rate could be between 6.5 per cent to 7 per cent. At this stage it will be difficult to attain nine per cent GDP growth," he said. "This year the growth rate will end at five per cent and this is real and not nominal ... Next year, the GDP growth rate could be anything between 6 to 6.5 per cent," he said. Also read: India forecasts 2019/20 GDP growth rate at 5% Recently IMF had pegged India's GDP growth at 4.8 per cent for 2019-20, much less than its October projection of 6.1 per cent. Debroy said that Indian economy at present is growing in an environment which is somewhat protectionist and has declining exports. "The period during which the country grew at high GDP growth rates like nine per cent, the exports-to-GDP ratio was 20 per cent. But now with developed countries resorting to protectionism and after the collapse of the WTO, the contribution of exports to GDP in a large way does not seem possible", he said. Also read: Not worried over slow GDP growth - Pranab Mukherjee Debroy said "With India being strong in services and not manufacturing, the country will have to give some to get some. It is a quid pro quo situation particularly in a regional trade bloc kind of arrangement". On the taxation regime, he said that the country is moving towards a stable direct tax regime without any exemption. "Goods and Services Tax (GST) is still work in progress. GST was supposed to be revenue-neutral. But the government has lost revenue post-GST implementation, which is not tenable," Debroy said. He said, "When both direct tax and GST rates get stabilised in future, a day might come when there would be no need to present budgets in the Parliament". Regarding the high cost of capital, Debroy said it will continue to be so as it is a scarce resource in India.

India can end up with 5% real GDP growth this fiscal: Chairman of PM's Economic Advisory Council

Monetary policy has its limits and the Indian government will have to use fiscal measures and structural reforms to revive demand and support the sagging economy, Reserve Bank of India governor Shaktikanta Das said in a speech on Friday.

The economy is projected to grow 5% in the fiscal year due to end in March, its lowest growth rate in 11 years.

Das said the RBI had used the space that was opened up by the moderation in inflation early last year and started loosening monetary policy after having recognised the imminent slowdown in growth even before it was confirmed by data.

"Monetary policy, however, has its own limits," he said.

"Structural reforms and fiscal measures may have to be continued and further activated to provide a durable push to demand and boost growth".

Also read: <a href="https://www.wionews.com/business-economy/government-must-continue-reforms-announce-fiscal-measures-rbi-chief-shaktikanta-das-276417">Global economy seems to be moving into 'new, unsettling phase' - RBI Governor Shaktikanta Das</a>

Das was speaking at a college event in New Delhi ahead of the federal budget that is due to be presented on February&nbsp;1.

He said potential drivers of growth like prioritising food processing industries, tourism, e-commerce, start-ups and efforts to become a part of the global value chain could give a significant push to the economy.

"The government is also focusing on infrastructure spending which will augment the growth potential of the economy. States should also play an important role by enhancing capital expenditure which has a high multiplier effect," Das added.

Finance Minister Nirmala Sitharaman, who will announce the budget, is widely expected to include stimulus measures for small businesses and non-banking finance companies as a cut in corporate tax rates and rate cuts by the central bank have failed to revive growth.

The central bank, which has cut interest rates by a combined 135 basis points in five moves since February last year, kept rates on hold at its last review in December. It is expected to maintain sit tight on February&nbsp;6 as well.

Monetary policy has its limits and the Indian government will have to use fiscal measures and structural reforms to revive demand and support the sagging economy, Reserve Bank of India governor Shaktikanta Das said in a speech on Friday.

Monetary policy has its limits and the Indian government will have to use fiscal measures and structural reforms to revive demand and support the sagging economy, Reserve Bank of India governor Shaktikanta Das said in a speech on Friday. The economy is projected to grow 5% in the fiscal year due to end in March, its lowest growth rate in 11 years. Das said the RBI had used the space that was opened up by the moderation in inflation early last year and started loosening monetary policy after having recognised the imminent slowdown in growth even before it was confirmed by data. "Monetary policy, however, has its own limits," he said. "Structural reforms and fiscal measures may have to be continued and further activated to provide a durable push to demand and boost growth". Also read: Global economy seems to be moving into 'new, unsettling phase' - RBI Governor Shaktikanta Das Das was speaking at a college event in New Delhi ahead of the federal budget that is due to be presented on February 1. He said potential drivers of growth like prioritising food processing industries, tourism, e-commerce, start-ups and efforts to become a part of the global value chain could give a significant push to the economy. "The government is also focusing on infrastructure spending which will augment the growth potential of the economy. States should also play an important role by enhancing capital expenditure which has a high multiplier effect," Das added. Finance Minister Nirmala Sitharaman, who will announce the budget, is widely expected to include stimulus measures for small businesses and non-banking finance companies as a cut in corporate tax rates and rate cuts by the central bank have failed to revive growth. The central bank, which has cut interest rates by a combined 135 basis points in five moves since February last year, kept rates on hold at its last review in December. It is expected to maintain sit tight on February 6 as well.

Government must continue reforms, announce fiscal measures: RBI chief Shaktikanta Das

<a href="https://www.wionews.com/business-economy/oil-prices-jump-to-61-over-opec-supply-cut-reports-265782">Oil prices</a> fell to their lowest in seven weeks on Thursday, sliding more than 1 per cent&nbsp;on concern that the spread of a respiratory virus from China may lower fuel demand if it stunts economic growth in an echo of the SARS epidemic nearly 20 years ago.

Brent crude futures were down 87 cents, or 1.4 per cent, to $62.34 a barrel by 0733 GMT, and earlier dropped to the lowest since Dec. 4 after falling 2.1&nbsp;per cent&nbsp;the previous session.

US&nbsp;West Texas Intermediate futures fell 94 cents, or 1.6 per cent, to $55.80 a barrel after earlier falling to the lowest since December&nbsp;3. The contract declined 2.7&nbsp;per cent&nbsp;on Wednesday.

The new coronavirus has killed 17 people through respiratory illness since it emerged late last year in Wuhan, a city of 11 million people in central China.

Nearly 600 cases have been confirmed, with cases detected as far as away as the United States, and city authorities have shut transport networks, urging residents not to leave to prevent the contagion spreading.

The potential for a pandemic has stirred memories of the Sudden<a href="https://www.wionews.com/world/mysterious-viral-pneumonia-infects-several-in-china-272495"> Acute Respiratory Syndrome</a> epidemic in 2002-2003, which also started in China, denting economic growth and causing a slump in travel.

"Downside demand risks due to the Wuhan virus appear to be a growing concern for the market, and understandably so, with any clampdown on travel likely to weigh on fuel demand," ING Research said.

Overseas airlines, along with rail operators from Hong Kong and elsewhere have also started shutting down connections to Wuhan, essentially now in lockdown as guards blocked routes out of the city.

"We estimate a price shock of up to $5 (a barrel) if the crisis develops into a <a href="https://www.wionews.com/world/sars-like-virus-spreading-across-china-amid-140-new-cases-third-death-275342">SARS-style</a> epidemic based on historical oil price movements," JPM Commodities Research said in a note.

The US&nbsp;bank maintained its forecasts for Brent to average $67 a barrel in the first quarter and $64.50 a barrel throughout 2020.

Elsewhere, amid all the concern about hits to demand, supply remains plentiful.

US&nbsp;crude stockpiles rose last week by 1.6 million barrels, against expectations of a drop, the American Petroleum Institute said late on Tuesday.

Brazil also produced more than a billion barrels of oil in 2019, a first for the South American nation, the national oil regulator said on Wednesday.

Meanwhile China released data on Thursday showing its gasoline exports are surging, rising nearly a third last year as more new refineries are opened.

Oil prices fell to their lowest in seven weeks on Thursday, sliding more than 1 per cent on concern that the spread of a respiratory virus from China may lower fuel demand if it stunts economic growth in an echo of the SARS epidemic nearly 20 years ago.

Oil prices fell to their lowest in seven weeks on Thursday, sliding more than 1 per cent on concern that the spread of a respiratory virus from China may lower fuel demand if it stunts economic growth in an echo of the SARS epidemic nearly 20 years ago. Brent crude futures were down 87 cents, or 1.4 per cent, to $62.34 a barrel by 0733 GMT, and earlier dropped to the lowest since Dec. 4 after falling 2.1 per cent the previous session. US West Texas Intermediate futures fell 94 cents, or 1.6 per cent, to $55.80 a barrel after earlier falling to the lowest since December 3. The contract declined 2.7 per cent on Wednesday. The new coronavirus has killed 17 people through respiratory illness since it emerged late last year in Wuhan, a city of 11 million people in central China. Nearly 600 cases have been confirmed, with cases detected as far as away as the United States, and city authorities have shut transport networks, urging residents not to leave to prevent the contagion spreading. The potential for a pandemic has stirred memories of the Sudden Acute Respiratory Syndrome epidemic in 2002-2003, which also started in China, denting economic growth and causing a slump in travel. "Downside demand risks due to the Wuhan virus appear to be a growing concern for the market, and understandably so, with any clampdown on travel likely to weigh on fuel demand," ING Research said. Overseas airlines, along with rail operators from Hong Kong and elsewhere have also started shutting down connections to Wuhan, essentially now in lockdown as guards blocked routes out of the city. "We estimate a price shock of up to $5 (a barrel) if the crisis develops into a SARS-style epidemic based on historical oil price movements," JPM Commodities Research said in a note. The US bank maintained its forecasts for Brent to average $67 a barrel in the first quarter and $64.50 a barrel throughout 2020. Elsewhere, amid all the concern about hits to demand, supply remains plentiful. US crude stockpiles rose last week by 1.6 million barrels, against expectations of a drop, the American Petroleum Institute said late on Tuesday. Brazil also produced more than a billion barrels of oil in 2019, a first for the South American nation, the national oil regulator said on Wednesday. Meanwhile China released data on Thursday showing its gasoline exports are surging, rising nearly a third last year as more new refineries are opened.

Oil skids as spectre of China virus looms over fuel demand, economy

The 50th World Economic Forum gathering is slated to begin today at Davos, Switzerland.

The key focus at this year's event is on the global economic slowdown, multilateralism, sustainable goals for 2030, and the Paris agreement.

Also read:&nbsp;<a href="https://www.wionews.com/world/ahead-of-davos-summit-greta-thunberg-calls-for-real-climate-action-274917">Ahead of Davos summit, Greta Thunberg calls for 'real climate action'</a>

Starting today (January 21), the summit will host 3,000 participants from 170 countries till Friday (January 24). World leaders, politicians, celebrities, and chief executives are slated to be present at the event to exchange economic, social, and environmental concerns.

This year's theme is ''Stakeholders for a cohesive and sustainable world''. 53 heads of state including US President Donald Trump, and German Chancellor Angela Merkel will attend the event.

<h6><img alt="WEF" data-entity-type="file" data-entity-uuid="62c84dd8-8b8d-4941-919d-f6673a3a9822" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%282%29_46.jpg" /> 
President of the European Commission Ursula von der Leyen delivers a speech at a ceremony to mark the 50th anniversary of World Economic Forum during the WEF's annual meeting in Davos, on January 20, 2020 | AFP 
&nbsp;</h6>

From India, Piyush Goyal is likely to attend the forum, with plans to meet other global leaders as well as company CEOs. India's focus is expected to be on bringing global investments into the country and accelerating the investments in Indian railway.

Recently, US President Donald Trump departed for Davos and the White House has revealed a list of leaders he is slated to meet at the forum. These include Iraqi President Barham Salih, Pakistani Prime Minister Imran Khan, European Commission President Ursula Von Der Leyenand Klaus Schwab, the leader of the World Economic Forum.

As he was leaving for Davos, Trump tweeted, ''Heading to Davos, Switzerland, to meet with world and business leaders and bring good policy and additional hundreds of billions of dollars back to the united states of America! We are now number one in the universe, by far!!''

Davos is also bracing for Trump-Greta showdown as climate change tops the agenda of the forum. This is the first time the two will face each other after the teenager stared Trump down at the United Nations.

Meanwhile, US President Donald Trump will be receiving the Swiss Army Security amid the climate protesters trek to Davos.

"We will see what he (trump) will tell us here, of course. We are looking very much forward because this is a global conference. We are putting a lot of emphasis on dealing with global issues. And the climate is the key global issue at this moment", said Klaus Schwab, the founder of the World Economic Forum.

The key challenges at this year's WEF meet will include the following:

<ul>
	<li>How to save the planet</li>
	<li>Society and the future of work</li>
	<li>Using technology for good</li>
	<li>Fairer economies</li>
	<li>Better business</li>
	<li>Healthy futures</li>
	<li>Beyond geopolitics</li>
</ul>

 
The gathering is taking place at a time of heightened trade disruptions, shifts in foreign policy and a climate emergency.

The global leaders are headed to Davos in search of stability. Focussing on the global slowdown in consumerism, the inclusion of new tech firms and the future of multilateralism.

<h6><img alt="WEF" data-entity-type="file" data-entity-uuid="f827c26d-305d-4526-9c55-e81172020213" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design_53.jpg" /> 
Indian actress Deepika Padukone delivers her acceptance speech during the "Crystal Award" ceremony at the World Economic Forum (WEF) annual meeting in Davos, on January 20, 2020 | AFP 
&nbsp;</h6>

In a report released last week, the WEF said severe threats to the climate account for all of the top five long-term risks.

The forum’s organisers have also chosen sustainable investment as the overarching topic for the four-day event.

Piyush Goyal is expected to hold bilateral meetings with ministers of Australia, South Africa, Russia, Saudi Arabia, Switzerland, Korea, and Singapore.

He is also slated to meet with CEOs of companies, attend WEF sessions and round tables on accelerating investments in Indian railways and attracting global institutional investments in India.

Also read:&nbsp;<a href="https://www.wionews.com/entertainment/deepika-padukone-receives-crystal-award-at-davos-says-depression-is-common-yet-serious-illness-275601">Deepika Padukone receives Crystal award at Davos, says depression is common yet serious illness</a>

Remembered as an ''ensemble of elitists'', the WEF summit has been on since 1971.

Envisaged by German engineer and economist, Klaus Schwab in 1971, the Davos Summit was imagined as an arena to bring a divided world together.

Over the years, the Davos Summit has helped shape many global issues like the Cold War, the Gulf War, Fall of the Berlin Wall, War on Terror, the 2008 recession, and more.

Even though it's easy to dismiss Davos as a meeting where ''billionaires tell millionaires what the middle class feels'', the summit has achieved quite a bit.

Last year alone, there were initiatives on mental health worth $260 million, electronic waste initiatives worth $2 million, and curbing plastic pollution.

However, Davos is a really costly affair. One person has to pay $5000 to spend one night at the summit, with security costs running as high as $9.35 million. In 2011, an individual membership cost $52,000.

The 50th World Economic Forum gathering is slated to begin today at Davos, Switzerland. The key focus at this year's event is on the global economic slowdown, multilateralism, sustainable goals for 2030, and the Paris agreement.

The 50th World Economic Forum gathering is slated to begin today at Davos, Switzerland. The key focus at this year's event is on the global economic slowdown, multilateralism, sustainable goals for 2030, and the Paris agreement. Also read: Ahead of Davos summit, Greta Thunberg calls for 'real climate action' Starting today (January 21), the summit will host 3,000 participants from 170 countries till Friday (January 24). World leaders, politicians, celebrities, and chief executives are slated to be present at the event to exchange economic, social, and environmental concerns. This year's theme is ''Stakeholders for a cohesive and sustainable world''. 53 heads of state including US President Donald Trump, and German Chancellor Angela Merkel will attend the event. President of the European Commission Ursula von der Leyen delivers a speech at a ceremony to mark the 50th anniversary of World Economic Forum during the WEF's annual meeting in Davos, on January 20, 2020 | AFP From India, Piyush Goyal is likely to attend the forum, with plans to meet other global leaders as well as company CEOs. India's focus is expected to be on bringing global investments into the country and accelerating the investments in Indian railway. Recently, US President Donald Trump departed for Davos and the White House has revealed a list of leaders he is slated to meet at the forum. These include Iraqi President Barham Salih, Pakistani Prime Minister Imran Khan, European Commission President Ursula Von Der Leyenand Klaus Schwab, the leader of the World Economic Forum. As he was leaving for Davos, Trump tweeted, ''Heading to Davos, Switzerland, to meet with world and business leaders and bring good policy and additional hundreds of billions of dollars back to the united states of America! We are now number one in the universe, by far!!'' Davos is also bracing for Trump-Greta showdown as climate change tops the agenda of the forum. This is the first time the two will face each other after the teenager stared Trump down at the United Nations. Meanwhile, US President Donald Trump will be receiving the Swiss Army Security amid the climate protesters trek to Davos. "We will see what he (trump) will tell us here, of course. We are looking very much forward because this is a global conference. We are putting a lot of emphasis on dealing with global issues. And the climate is the key global issue at this moment", said Klaus Schwab, the founder of the World Economic Forum. The key challenges at this year's WEF meet will include the following: How to save the planet Society and the future of work Using technology for good Fairer economies Better business Healthy futures Beyond geopolitics The gathering is taking place at a time of heightened trade disruptions, shifts in foreign policy and a climate emergency. The global leaders are headed to Davos in search of stability. Focussing on the global slowdown in consumerism, the inclusion of new tech firms and the future of multilateralism. Indian actress Deepika Padukone delivers her acceptance speech during the "Crystal Award" ceremony at the World Economic Forum (WEF) annual meeting in Davos, on January 20, 2020 | AFP In a report released last week, the WEF said severe threats to the climate account for all of the top five long-term risks. The forum’s organisers have also chosen sustainable investment as the overarching topic for the four-day event. Piyush Goyal is expected to hold bilateral meetings with ministers of Australia, South Africa, Russia, Saudi Arabia, Switzerland, Korea, and Singapore. He is also slated to meet with CEOs of companies, attend WEF sessions and round tables on accelerating investments in Indian railways and attracting global institutional investments in India. Also read: Deepika Padukone receives Crystal award at Davos, says depression is common yet serious illness Remembered as an ''ensemble of elitists'', the WEF summit has been on since 1971. Envisaged by German engineer and economist, Klaus Schwab in 1971, the Davos Summit was imagined as an arena to bring a divided world together. Over the years, the Davos Summit has helped shape many global issues like the Cold War, the Gulf War, Fall of the Berlin Wall, War on Terror, the 2008 recession, and more. Even though it's easy to dismiss Davos as a meeting where ''billionaires tell millionaires what the middle class feels'', the summit has achieved quite a bit. Last year alone, there were initiatives on mental health worth $260 million, electronic waste initiatives worth $2 million, and curbing plastic pollution. However, Davos is a really costly affair. One person has to pay $5000 to spend one night at the summit, with security costs running as high as $9.35 million. In 2011, an individual membership cost $52,000.

50th World Economic Forum at Davos: Key focus on climate change, economic slowdown, sustainable growth

In little over a fortnight, Finance Minister Nirmala Sitharaman will present the Union Budget in India.

This is one of the most closely followed budgets in Indian history because of the precarious situation that the economy finds itself in.

Former Chief Economic Advisor Arvind Subramanian called it 'India's great slowdown'. Former RBI governor Raghuram Rajan says '5 per cent growth simply doesn't cut it.'

Economists are divided in their prescriptions for recovery. So what can and should the government do?

On the WION edit, we will compile some of the solutions that are being discussed.&nbsp;

India is not an export-driven economy, it's a consumption-driven economy and the government's first priority must be finding ways to revive consumption.

The government must begin with the rural economy which is in deep distress. Over half of India's population depends on the rural economy.&nbsp;

If the health of agriculture is crippled, the Indian economy will limp. Average monthly household income in rural India remains woefully low and this is because of disparity between a farmer's income and produce and the government needs to find ways to fix this.

Second, the problem of bad loans needs to be fixed. The whole picture and extent are still not clear and that is frankly, scary.

Third, rate cuts are a good tool to facilitate spending and boost demand, but passing on the benefits are equally important.

GST rates can be rationalised and lowered, in some cases, to revive demand.

But the real problem is the fiscal problem, there is no space for a fiscal stimulus and that is a big worry.

Fourth, India cannot allow dodgy assets to destabilise banks. For very long, India's policymakers had a simple solution for banks with poor performance - to merge the weak banks with strong state-run banks.

In tricky global weather and a weak consumption regime, solving the jobs crisis will be next to impossible.

The government must act quickly. If the levers of demand and consumption are allowed to rust, then the path to recovery might be much longer. Moreover, fluctuation in oil prices will push inflation.

Budget incentives to boost consumption will go a long way in restoring confidence in the Indian economy. 
 
(Disclaimer: WION Edit is the channel's take on the big events of the world)&nbsp;

In little over a fortnight, Finance Minister Nirmala Sitharaman will present the Union Budget in India. This is one of the most closely followed budgets in Indian history because of the precarious situation that the economy finds itself in.

In little over a fortnight, Finance Minister Nirmala Sitharaman will present the Union Budget in India. This is one of the most closely followed budgets in Indian history because of the precarious situation that the economy finds itself in. Former Chief Economic Advisor Arvind Subramanian called it 'India's great slowdown'. Former RBI governor Raghuram Rajan says '5 per cent growth simply doesn't cut it.' Economists are divided in their prescriptions for recovery. So what can and should the government do? On the WION edit, we will compile some of the solutions that are being discussed. India is not an export-driven economy, it's a consumption-driven economy and the government's first priority must be finding ways to revive consumption. The government must begin with the rural economy which is in deep distress. Over half of India's population depends on the rural economy. If the health of agriculture is crippled, the Indian economy will limp. Average monthly household income in rural India remains woefully low and this is because of disparity between a farmer's income and produce and the government needs to find ways to fix this. Second, the problem of bad loans needs to be fixed. The whole picture and extent are still not clear and that is frankly, scary. Third, rate cuts are a good tool to facilitate spending and boost demand, but passing on the benefits are equally important. GST rates can be rationalised and lowered, in some cases, to revive demand. But the real problem is the fiscal problem, there is no space for a fiscal stimulus and that is a big worry. Fourth, India cannot allow dodgy assets to destabilise banks. For very long, India's policymakers had a simple solution for banks with poor performance - to merge the weak banks with strong state-run banks. In tricky global weather and a weak consumption regime, solving the jobs crisis will be next to impossible. The government must act quickly. If the levers of demand and consumption are allowed to rust, then the path to recovery might be much longer. Moreover, fluctuation in oil prices will push inflation. Budget incentives to boost consumption will go a long way in restoring confidence in the Indian economy. (Disclaimer: WION Edit is the channel's take on the big events of the world)

WION Edit: Summarising the state of Indian economy

India needs to take immediate steps to reverse the economic slowdown, it is projected that India would generate 1.6 MN lesser jobs this year.

India: FY20 job creation down by 1.6 MN

The start of winter sales in Paris on Wednesday (January 8) - traditionally a big event for French retailers - is unlikely to make up for a dismal Christmas period, store directors and owners bemoaned as shoppers pushed through the doors of high-end department stores such as the Galeries Lafayette and Printemps.

Winter sales offer little relief for retailers in Paris, worried over continuing strikes

<a href="https://www.wionews.com/world/worlds-biggest-trade-deal-to-be-delayed-to-2020-draft-asean-statement-259667">America's trade deficit</a> continued to tumble in November, hitting its lowest level in three years as imports of crude oil, computers and industrial supplies fell off sharply, the government reported Tuesday.

That put the United States on track for the first drop in the annual deficit in six years, likely reflecting the damage to international commerce from the US-China trade conflict and a sluggish global economy.

Lowering the deficit has been a chief goal of <a href="https://www.wionews.com/world/all-is-well-so-far-so-good-says-trump-after-irans-missile-strikes-at-us-bases-in-iraq-272818">President Donald Trump</a>'s aggressive trade policy but whether the decline will be sustained remains in question.

The drop should help lift GDP growth for the final months of 2019 but falling imports are not necessarily a good sign, as it can be a sign of a weakening domestic economy.

The trade gap - the difference between what the <a href="https://www.wionews.com/world/us-criticises-russia-china-at-un-over-failure-to-condemn-baghdad-embassy-attack-272600">United States</a> buys from and sells to international trading partners -&nbsp;fell 8.2 per cent in November to $43.1 billion, even lower than economists had expected and the lowest since October 2016, according to the Commerce Department data.

Imports fell 1.7 per cent to $251.7 billion for the month, the lowest level in more than two years, as Americans purchased fewer mobile phones, artwork, civilian aircraft, and computers.

<a href="https://www.wionews.com/business-economy/oil-prices-surge-to-new-high-after-iran-attacks-us-bases-in-iraq-272812">Crude oil</a> imports, adjusted for inflation and seasonal changes, were the lowest since records began in 1994, reflecting increased domestic supply, as America transformed in recent years to become the world's largest producer.

Autos and parts bucked the trend, with imports rising $1.1 billion.

Exports rose but not enough to compensate for the drop in imports, rising 0.7 per cent to $208.6 billion, as Americans shipped out more drilling and oilfield equipment, jewellery and gems, autos and aircraft engines.

Imports to rebound?

Even that modest gain put exports at a new record.

But imports of services, an area where the United States typically enjoys an advantage over foreign competitors, also hit the highest level ever.

Ian Shepherdson of Pantheon Macroeconomics said the plunge in the US deficit was not sustainable, particularly because US demand is much stronger than the import figures suggest.

"This can't last; we expect a rebound over the next few months, likely starting in February," he said in an analysis.

Some tariff rates on <a href="https://www.wionews.com/world/taiwan-to-vote-in-shadow-of-china-pressure-hong-kong-protests-272816">Chinese</a> goods are due to fall that month as part of the partial deal announced in December between the United States and China.

Trump announced that Washington and Beijing are due to sign a partial <a href="https://www.wionews.com/world/us-farmers-see-another-bleak-year-despite-phase-1-trade-deal-271864">agreement</a> in Washington next week, halting the escalation in their trade conflict of nearly two years.

But many of the trade barriers remain, including retaliatory tariffs on some US goods.

Despite the November increase, &nbsp;Shepherdson said US exports are "struggling," Shepherdson said. He noted that excluding oil and aircraft, foreign goods sales had actually fallen sharply, which was in line with survey data pointing to continued declines.

The US trade deficit has not decreased on a full-year basis since 2013, but over the first 11 months of 2019, it dropped 0.7 per cent compared to the same period in the prior year.

Economists say falling imports could partly reflect the steep tariffs Trump imposed earlier this year on Chinese imports, even though last month he cancelled plans for what threatened to be the most painful round of duty increases yet.

Watch: Trump says 'all is well' after Iran's missile attack

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In November, the goods trade deficit with China fell 7.8 per cent compared to October, and it is down 16 per cent since the start of the year.

With Mexico, however, the goods deficit continued to rise, growing 8.7 per cent compared to October, marking a year-to-date increase of nearly 28 per cent.

Trump likens the trade deficit to stealing from America, but economists do not share this view, saying the United States does not produce enough domestically to meet its own needs.

America's trade deficit continued to tumble in November, hitting its lowest level in three years as imports of crude oil, computers and industrial supplies fell off sharply, the government reported Tuesday.

America's trade deficit continued to tumble in November, hitting its lowest level in three years as imports of crude oil, computers and industrial supplies fell off sharply, the government reported Tuesday. That put the United States on track for the first drop in the annual deficit in six years, likely reflecting the damage to international commerce from the US-China trade conflict and a sluggish global economy. Lowering the deficit has been a chief goal of President Donald Trump's aggressive trade policy but whether the decline will be sustained remains in question. The drop should help lift GDP growth for the final months of 2019 but falling imports are not necessarily a good sign, as it can be a sign of a weakening domestic economy. The trade gap - the difference between what the United States buys from and sells to international trading partners - fell 8.2 per cent in November to $43.1 billion, even lower than economists had expected and the lowest since October 2016, according to the Commerce Department data. Imports fell 1.7 per cent to $251.7 billion for the month, the lowest level in more than two years, as Americans purchased fewer mobile phones, artwork, civilian aircraft, and computers. Crude oil imports, adjusted for inflation and seasonal changes, were the lowest since records began in 1994, reflecting increased domestic supply, as America transformed in recent years to become the world's largest producer. Autos and parts bucked the trend, with imports rising $1.1 billion. Exports rose but not enough to compensate for the drop in imports, rising 0.7 per cent to $208.6 billion, as Americans shipped out more drilling and oilfield equipment, jewellery and gems, autos and aircraft engines. Imports to rebound? Even that modest gain put exports at a new record. But imports of services, an area where the United States typically enjoys an advantage over foreign competitors, also hit the highest level ever. Ian Shepherdson of Pantheon Macroeconomics said the plunge in the US deficit was not sustainable, particularly because US demand is much stronger than the import figures suggest. "This can't last; we expect a rebound over the next few months, likely starting in February," he said in an analysis. Some tariff rates on Chinese goods are due to fall that month as part of the partial deal announced in December between the United States and China. Trump announced that Washington and Beijing are due to sign a partial agreement in Washington next week, halting the escalation in their trade conflict of nearly two years. But many of the trade barriers remain, including retaliatory tariffs on some US goods. Despite the November increase, Shepherdson said US exports are "struggling," Shepherdson said. He noted that excluding oil and aircraft, foreign goods sales had actually fallen sharply, which was in line with survey data pointing to continued declines. The US trade deficit has not decreased on a full-year basis since 2013, but over the first 11 months of 2019, it dropped 0.7 per cent compared to the same period in the prior year. Economists say falling imports could partly reflect the steep tariffs Trump imposed earlier this year on Chinese imports, even though last month he cancelled plans for what threatened to be the most painful round of duty increases yet. Watch: Trump says 'all is well' after Iran's missile attack × In November, the goods trade deficit with China fell 7.8 per cent compared to October, and it is down 16 per cent since the start of the year. With Mexico, however, the goods deficit continued to rise, growing 8.7 per cent compared to October, marking a year-to-date increase of nearly 28 per cent. Trump likens the trade deficit to stealing from America, but economists do not share this view, saying the United States does not produce enough domestically to meet its own needs.

Plunging US imports push trade deficit to 3-year low in November

<a href="https://www.wionews.com/business-economy/gold-hits-two-month-peak-on-dollar-weakness-us-strikes-270962">Gold</a>&nbsp;prices jumped to their highest in more than three months on Tuesday on a weakening dollar, with the metal on track for its best annual show in nearly a decade, while palladium leapt towards its fourth straight yearly gain.

Spot&nbsp;gold&nbsp;hit its highest since September&nbsp;25 at $1,525.20 and was up 0.6 per cent to $1,524.44 per ounce by 0727 GMT. U.S.&nbsp;gold&nbsp;futures rose 0.6 per cent to $1,527.60.

Bullion has gained nearly 19 per cent in the year, its biggest since 2010, mainly driven by a tariff war between the United States and China, which triggered monetary policy easing by major central banks.

"One of the main drivers behind&nbsp;gold's gain is the weakening in the dollar," said Margaret Yang Yan, a market analyst at CMC Markets, adding prices also rose on year-end bargain-hunting.

The dollar slipped against a basket of rivals, making&nbsp;gold&nbsp;cheaper for holders of other currencies.

"However, the upside is kind of limited because quantitative easing or rate-cutting cycle has come to an end for now and we don't see a possibility of any rate cuts in 2020," Yan said.

The <a href="https://www.wionews.com/business-economy/gold-soars-2-per-cent-after-powell-speech-trump-tweets-245351">US&nbsp;Federal Reserve</a> cut interest rates three times this year before taking a pause. Lower interest rates reduce the opportunity cost of holding the non-yielding bullion.

On the trade front, a <a href="https://www.wionews.com/world/phase-one-trade-deal-with-china-would-be-signed-very-shortly-donald-trump-269576">Phase 1 deal</a> is likely to be signed next week, White House trade adviser Peter Navarro said on Monday.

"With liquidity much reduced in Asia, there is some potential for&nbsp;gold&nbsp;to spike higher on low volume with some risk hedging added into the mix," said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA, in a note. "The next resistance is at $1,535 an ounce."

Further supporting&nbsp;gold, Asian shares slipped as investors locked in gains after a buoyant year of gains.

Speculators raised their bullish positions in COMEX&nbsp;gold&nbsp;contracts in the week to December&nbsp;24.

Elsewhere, palladium rose 0.3 per cent to $1,913.02 per ounce. Plagued by sustained supply deficit, the auto-catalyst metal extended gains into a fourth straight year.

Prices have jumped over 51 per cent so far this year, the most since 2017, which would make palladium the biggest gainer among precious metals for the year.

<a href="https://www.wionews.com/business-economy/deficit-hit-palladium-takes-aim-at-2000-ceiling-in-record-run-268725">Palladium</a>, used mainly in catalytic converters in vehicles, rose to an all-time peak of $1,998.43 on December&nbsp;17.

Silver rose 1.1 per cent to $18.10 and was poised to register its best year since 2010, rising about 17 per cent.

Platinum gained 1.4 per cent to $971.09 and was set to gain about 23 per cent for the year, its best since 2009.

Gold prices jumped to their highest in more than three months on Tuesday on a weakening dollar, with the metal on track for its best annual show in nearly a decade, while palladium leapt towards its fourth straight yearly gain.

Gold prices jumped to their highest in more than three months on Tuesday on a weakening dollar, with the metal on track for its best annual show in nearly a decade, while palladium leapt towards its fourth straight yearly gain. Spot gold hit its highest since September 25 at $1,525.20 and was up 0.6 per cent to $1,524.44 per ounce by 0727 GMT. U.S. gold futures rose 0.6 per cent to $1,527.60. Bullion has gained nearly 19 per cent in the year, its biggest since 2010, mainly driven by a tariff war between the United States and China, which triggered monetary policy easing by major central banks. "One of the main drivers behind gold's gain is the weakening in the dollar," said Margaret Yang Yan, a market analyst at CMC Markets, adding prices also rose on year-end bargain-hunting. The dollar slipped against a basket of rivals, making gold cheaper for holders of other currencies. "However, the upside is kind of limited because quantitative easing or rate-cutting cycle has come to an end for now and we don't see a possibility of any rate cuts in 2020," Yan said. The US Federal Reserve cut interest rates three times this year before taking a pause. Lower interest rates reduce the opportunity cost of holding the non-yielding bullion. On the trade front, a Phase 1 deal is likely to be signed next week, White House trade adviser Peter Navarro said on Monday. "With liquidity much reduced in Asia, there is some potential for gold to spike higher on low volume with some risk hedging added into the mix," said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA, in a note. "The next resistance is at $1,535 an ounce." Further supporting gold, Asian shares slipped as investors locked in gains after a buoyant year of gains. Speculators raised their bullish positions in COMEX gold contracts in the week to December 24. Elsewhere, palladium rose 0.3 per cent to $1,913.02 per ounce. Plagued by sustained supply deficit, the auto-catalyst metal extended gains into a fourth straight year. Prices have jumped over 51 per cent so far this year, the most since 2017, which would make palladium the biggest gainer among precious metals for the year. Palladium, used mainly in catalytic converters in vehicles, rose to an all-time peak of $1,998.43 on December 17. Silver rose 1.1 per cent to $18.10 and was poised to register its best year since 2010, rising about 17 per cent. Platinum gained 1.4 per cent to $971.09 and was set to gain about 23 per cent for the year, its best since 2009.

Gold climbs to three-month high, poised for best year since 2010

Indian&nbsp;stocks&nbsp;slipped on Tuesday but hovered around their all-time highs as investors booked&nbsp;year-end&nbsp;profits, while the benchmark&nbsp;<a href="https://www.wionews.com/business-economy/sensex-nifty-edge-higher-in-rangebound-trade-gail-power-grid-rise-270934">Nifty&nbsp;index</a> was poised for a nearly&nbsp;13 per cent&nbsp;gain in&nbsp;2019.

On the last trading day of the&nbsp;year, the NSE&nbsp;Nifty&nbsp;50 index was down 0.36 per cent&nbsp;at 12,211.60 by 0445 GMT, while the S&amp;P BSE Sensex was trading 0.38 per cent lower at 41,401.35.

The&nbsp;Nifty&nbsp;has risen 12.5 per cent&nbsp;so far this&nbsp;year, while the Sensex has climbed 14.8 per cent. Both blue-chip indexes hit fresh record highs this&nbsp;year&nbsp;and have gained sharply more than in 2018, even as economic growth&nbsp;slipped to a five-year&nbsp;low this&nbsp;year&nbsp;amid a slowdown in demand for everything from cars to cookies.

Still, the gap between large-cap&nbsp;shares&nbsp;and their smaller peers was stark. The <a href="https://www.wionews.com/business-%26-economy/bse-to-launch-commodity-derivatives-trading-from-1-october-135458?amp">BSE</a> MidCap index has shed 3 per cent&nbsp;this&nbsp;year, while the BSE SmallCap index is down 7 per cent.

Asian equities also&nbsp;slipped on Tuesday, mirroring declines on Wall Street, as investors locked in gains made since the <a href="https://www.wionews.com/world/phase-one-trade-deal-with-china-would-be-signed-very-shortly-donald-trump-269576">United States and China deal</a> this month.

The&nbsp;Nifty&nbsp;Bank index and the&nbsp;Nifty&nbsp;PSU Bank index, which have each rallied roughly 17 per cent&nbsp;since early October, were down 0.40 per cent and 0.33 per cent, respectively.

Twelve of the 13 stocks on the&nbsp;Nifty&nbsp;PSU Bank index, which tracks state-run lenders, were in the red.&nbsp;Indian&nbsp;Overseas Bank fell 2.1 per cent.

The&nbsp;Nifty&nbsp;Auto index, which has climbed 23 per cent from a record low in July, was down 0.40 per cent. The index still lost 10 per cent this&nbsp;year&nbsp;as automakers battled a crippling slowdown that forced them to cut production and jobs.

"When the market is near an all-time high, there's a probability of a correction ... we are seeing that today," said Siddharth Sedani, head of equity advisory at Anand Rathi Financial Services Ltd in Mumbai.

The&nbsp;Nifty&nbsp;50 last hit an intraday record high of 12,293.90 on December&nbsp;20.

Indian stocks slipped on Tuesday but hovered around their all-time highs as investors booked year-end profits, while the benchmark Nifty index was poised for a nearly 13 per cent gain in 2019.

Indian stocks slipped on Tuesday but hovered around their all-time highs as investors booked year-end profits, while the benchmark Nifty index was poised for a nearly 13 per cent gain in 2019. On the last trading day of the year, the NSE Nifty 50 index was down 0.36 per cent at 12,211.60 by 0445 GMT, while the S&P BSE Sensex was trading 0.38 per cent lower at 41,401.35. The Nifty has risen 12.5 per cent so far this year, while the Sensex has climbed 14.8 per cent. Both blue-chip indexes hit fresh record highs this year and have gained sharply more than in 2018, even as economic growth slipped to a five-year low this year amid a slowdown in demand for everything from cars to cookies. Still, the gap between large-cap shares and their smaller peers was stark. The BSE MidCap index has shed 3 per cent this year, while the BSE SmallCap index is down 7 per cent. Asian equities also slipped on Tuesday, mirroring declines on Wall Street, as investors locked in gains made since the United States and China deal this month. The Nifty Bank index and the Nifty PSU Bank index, which have each rallied roughly 17 per cent since early October, were down 0.40 per cent and 0.33 per cent, respectively. Twelve of the 13 stocks on the Nifty PSU Bank index, which tracks state-run lenders, were in the red. Indian Overseas Bank fell 2.1 per cent. The Nifty Auto index, which has climbed 23 per cent from a record low in July, was down 0.40 per cent. The index still lost 10 per cent this year as automakers battled a crippling slowdown that forced them to cut production and jobs. "When the market is near an all-time high, there's a probability of a correction ... we are seeing that today," said Siddharth Sedani, head of equity advisory at Anand Rathi Financial Services Ltd in Mumbai. The Nifty 50 last hit an intraday record high of 12,293.90 on December 20.

Indian shares slip on year-end profit booking; Nifty set for 13% jump in 2019

Asian&nbsp;shares&nbsp;slipped on the last trading day of the&nbsp;decade, echoing falls on Wall Street, as&nbsp;investors&nbsp;locked in gains made since <a href="https://www.wionews.com/world/phase-one-trade-deal-reached-with-us-china-268186">the United States and China</a> reached a preliminary trade deal earlier this month.

Early in the&nbsp;Asian&nbsp;trading session, MSCI's broadest index of Asia-Pacific&nbsp;shares&nbsp;outside Japan was down 0.39 per cent, its weakest performance since December&nbsp;4. For the month, the index is still up 5.7 per cent.

The index has gained 16 per cent&nbsp;this year, a sharp turnaround from a 16.2 per cent drop last year but lagging a 23.8 per cent year-to-date gain in MSCI's&nbsp;global&nbsp;share index.

Australian&nbsp;shares&nbsp;were 1.69 per cent&nbsp;lower&nbsp;and Hong Kong's Hang Seng dropped 0.32 per cent.

"We are seeing some profit-taking into year-end," said Ryan Felsman, senior economist at CommSec in Sydney, adding that progress on resolving the 17-month-long US-China trade war remained a positive factor for&nbsp;investors&nbsp;into the new year.

The White House's trade adviser on Monday said the US-China Phase 1 trade deal would likely be signed in the next week, but said confirmation would come from President Donald Trump or the US&nbsp;Trade Representative.

"We think that the&nbsp;global&nbsp;growth situation is improving, we're seeing better industrial&nbsp;profits&nbsp;in China ... green shoots in the manufacturing sector on the back of an improvement in the trade situation is a key catalyst going forward," he said.

While easing trade concerns and steps toward a resolution of Britain's exit from the European Union have helped reduce some near-term market uncertainty,&nbsp;investors&nbsp;remain uneasy with a recession seen as inevitable in the new&nbsp;decade.

Positive Chinese manufacturing data, which showed factory activity in China expanded for a second straight month in December, nudged China's blue-chip CSI300 index 0.1 per cent&nbsp;higher, extending the more than 33 per cent&nbsp;gain seen this year.

China's modest gains built on Monday's rally, which was driven by a combination of strong retail sales growth and hopes that a new benchmark for floating-rate loans could&nbsp;lower&nbsp;borrowing costs.

<a href="https://www.wionews.com/business-economy/global-markets-china-lifts-asian-shares-oil-up-on-drawdowns-mideast-tensions-270929">Markets</a>&nbsp;in Japan and South Korea were closed for a holiday.

The falls in Asia came after profit-taking pushed the Dow Jones Industrial Average down 0.64 per cent&nbsp;to 28,462.14, the S&amp;P 500 0.58 per cent&nbsp;lower&nbsp;to 3,221.29 and the Nasdaq Composite off 0.67 per cent&nbsp;to 8,945.99.

<a href="https://www.wionews.com/world/us-treasury-secretary-mnuchin-says-trade-deal-with-china-to-boost-global-economy-268327">US&nbsp;Treasury</a> futures were&nbsp;lower, reflecting an implied yield of 1.82 per cent. That followed a rise in benchmark US&nbsp;Treasury yields on Monday that pushed the US&nbsp;two-year, 10-year yield curve to its steepest in 14 months.

The dollar continued to weaken against the yen, dropping 0.12 per cent&nbsp;to 108.73, and the euro strengthened 0.16% to buy $1.1215.

The dollar index, which tracks the greenback against a basket of six major rivals, was 0.06 per cent&nbsp;lower&nbsp;at 96.686.

<a href="https://www.wionews.com/business-economy/oil-gains-on-us-crude-stocks-fall-opec-comments-on-slower-us-shale-growth-262061">US&nbsp;crude</a> dipped 0.18 per cent&nbsp;to $61.57 a barrel and Brent crude shed 0.15 per cent&nbsp;to $66.57 per barrel.

Gold continued its rally on a weakening dollar. On the spot market, the precious metal was changing hands at $1,520.16 per ounce, up 0.33 per cent.

Asian shares slipped on the last trading day of the decade, echoing falls on Wall Street, as investors locked in gains made since the United States and China reached a preliminary trade deal earlier this month.

Asian shares slipped on the last trading day of the decade, echoing falls on Wall Street, as investors locked in gains made since the United States and China reached a preliminary trade deal earlier this month. Early in the Asian trading session, MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.39 per cent, its weakest performance since December 4. For the month, the index is still up 5.7 per cent. The index has gained 16 per cent this year, a sharp turnaround from a 16.2 per cent drop last year but lagging a 23.8 per cent year-to-date gain in MSCI's global share index. Australian shares were 1.69 per cent lower and Hong Kong's Hang Seng dropped 0.32 per cent. "We are seeing some profit-taking into year-end," said Ryan Felsman, senior economist at CommSec in Sydney, adding that progress on resolving the 17-month-long US-China trade war remained a positive factor for investors into the new year. The White House's trade adviser on Monday said the US-China Phase 1 trade deal would likely be signed in the next week, but said confirmation would come from President Donald Trump or the US Trade Representative. "We think that the global growth situation is improving, we're seeing better industrial profits in China ... green shoots in the manufacturing sector on the back of an improvement in the trade situation is a key catalyst going forward," he said. While easing trade concerns and steps toward a resolution of Britain's exit from the European Union have helped reduce some near-term market uncertainty, investors remain uneasy with a recession seen as inevitable in the new decade. Positive Chinese manufacturing data, which showed factory activity in China expanded for a second straight month in December, nudged China's blue-chip CSI300 index 0.1 per cent higher, extending the more than 33 per cent gain seen this year. China's modest gains built on Monday's rally, which was driven by a combination of strong retail sales growth and hopes that a new benchmark for floating-rate loans could lower borrowing costs. Markets in Japan and South Korea were closed for a holiday. The falls in Asia came after profit-taking pushed the Dow Jones Industrial Average down 0.64 per cent to 28,462.14, the S&P 500 0.58 per cent lower to 3,221.29 and the Nasdaq Composite off 0.67 per cent to 8,945.99. US Treasury futures were lower, reflecting an implied yield of 1.82 per cent. That followed a rise in benchmark US Treasury yields on Monday that pushed the US two-year, 10-year yield curve to its steepest in 14 months. The dollar continued to weaken against the yen, dropping 0.12 per cent to 108.73, and the euro strengthened 0.16% to buy $1.1215. The dollar index, which tracks the greenback against a basket of six major rivals, was 0.06 per cent lower at 96.686. US crude dipped 0.18 per cent to $61.57 a barrel and Brent crude shed 0.15 per cent to $66.57 per barrel. Gold continued its rally on a weakening dollar. On the spot market, the precious metal was changing hands at $1,520.16 per ounce, up 0.33 per cent.

Global Markets: Asian shares lower as investors book decade-end profits

Factory&nbsp;activity in <a href="https://www.wionews.com/business-economy/tesla-begins-deliveries-of-china-made-model-3-cars-270899">China</a> expanded for a second straight month in December, as production quickened and export orders rose, offering some support for the manufacturing sector amid signs of progress in trade talks with the United States.

China's&nbsp;official Purchasing Managers' Index (PMI) was unchanged at 50.2 in December from November, the National Bureau of Statistics said on Tuesday and remained above the 50-point mark that separates monthly growth from contraction. November's gain had ended six straight months of contraction.

Analysts polled by sources expected the December PMI to be 50.1.

The better-than-expected readings suggested some recovery in the world's second-largest economy this month. Production rose at the fastest pace in over a year while the growth of total new orders remained buoyant, only a notch lower than a recent high hit last month.

December's expansion comes amid signs of improvement in <a href="https://www.wionews.com/world/phase-one-trade-deal-with-china-would-be-signed-very-shortly-donald-trump-269576">Sino-US&nbsp;trade talks</a>, which have boosted global investor confidence and helped Chinese manufacturers book new orders from abroad.

New export orders, in particular, rose for the first time since May 2018 in December.

China and the United States announced a Phase 1 agreement that would reduce some US&nbsp;tariffs in exchange for more Chinese purchases of American farm products, which analysts believed could stimulate&nbsp;China's&nbsp;exports and corporate investment in the near-term.

Profits at&nbsp;China's&nbsp;industrial firms grew at the fastest pace in eight months in November on quickening output and sales.

Factories continued to shed jobs in December, but the pace of reduction did not accelerate.

Over 25 million jobs were trimmed from the industrial sector from end-2013 to end-2018, mostly in labour-intensive industries, the latest economic census showed, as labour costs rose.

However, growth in&nbsp;China's&nbsp;services sector activity cooled in December.

The official non-manufacturing PMI dropped to 53.5, from an eight-month high of 54.4 in November, a separate survey showed.

<a href="https://www.wionews.com/pakistan/us-re-designates-pakistan-china-as-countries-curbing-religious-freedom-269447">Beijing</a> has relied on a strong services sector to offset manufacturing weakness. However, a broader economic slowdown since late last year has limited the sector's resilience.

China plans to set a lower economic growth target of around 6 per cent&nbsp;in 2020 from this year's 6-6.5 per cent, relying on increased state infrastructure spending to ward off a sharper slowdown.

Factory activity in China expanded for a second straight month in December, as production quickened and export orders rose, offering some support for the manufacturing sector amid signs of progress in trade talks with the United States.

Factory activity in China expanded for a second straight month in December, as production quickened and export orders rose, offering some support for the manufacturing sector amid signs of progress in trade talks with the United States. China's official Purchasing Managers' Index (PMI) was unchanged at 50.2 in December from November, the National Bureau of Statistics said on Tuesday and remained above the 50-point mark that separates monthly growth from contraction. November's gain had ended six straight months of contraction. Analysts polled by sources expected the December PMI to be 50.1. The better-than-expected readings suggested some recovery in the world's second-largest economy this month. Production rose at the fastest pace in over a year while the growth of total new orders remained buoyant, only a notch lower than a recent high hit last month. December's expansion comes amid signs of improvement in Sino-US trade talks, which have boosted global investor confidence and helped Chinese manufacturers book new orders from abroad. New export orders, in particular, rose for the first time since May 2018 in December. China and the United States announced a Phase 1 agreement that would reduce some US tariffs in exchange for more Chinese purchases of American farm products, which analysts believed could stimulate China's exports and corporate investment in the near-term. Profits at China's industrial firms grew at the fastest pace in eight months in November on quickening output and sales. Factories continued to shed jobs in December, but the pace of reduction did not accelerate. Over 25 million jobs were trimmed from the industrial sector from end-2013 to end-2018, mostly in labour-intensive industries, the latest economic census showed, as labour costs rose. However, growth in China's services sector activity cooled in December. The official non-manufacturing PMI dropped to 53.5, from an eight-month high of 54.4 in November, a separate survey showed. Beijing has relied on a strong services sector to offset manufacturing weakness. However, a broader economic slowdown since late last year has limited the sector's resilience. China plans to set a lower economic growth target of around 6 per cent in 2020 from this year's 6-6.5 per cent, relying on increased state infrastructure spending to ward off a sharper slowdown.

China's factory activity expands for second month as output, export orders pick up

The year 2019 has been the year of the rich, as the world's richest 500 surged by 25 per cent, adding $1.2 trillion to their combined wealth, according to a report.&nbsp;

Names like Facebook CEO Mark Zuckerberg were seen with new additions like American social media star Kylie Jenner, who became the youngest self-made billionaire after her company 'Kylie Cosmetics', signed an exclusive partnership with Ulta Beauty Inc.

Jenner was not alone as a lot of people making money through social media, including the Korean family who helped popularise the viral baby shark song, who are not worth $125 million.

Zuckerberg topped the list with an increase in net worth by $27.3 billion. He Xiangjian- founder of China's biggest air conditioner exporter- took the second spot with an added $23.3 billion to his wealth.&nbsp;

The co-founder of Microsoft Bill Gates came in third with an addition of $22.7 billion to his fortune.&nbsp;

Amazon Inc's owner Jeff Bezos lost $9 billion due to his divorce settlement with wife Mackenzie.

However, it is important to note that as the wealth of the rich people is increasing, the gap between the rich and poor is also widening.

With reports claiming that the world's 26 richest people control as much wealth as the poorest 50 per cent.

While the rich may be making merry this New Year's Eve, their rising net worth is surely going to increase calls for equitable distribution of wealth.

The year 2019 has been the year of the rich, as the world's richest 500 surged by 25 per cent, adding $1.2 trillion to their combined wealth, according to a report.

The year 2019 has been the year of the rich, as the world's richest 500 surged by 25 per cent, adding $1.2 trillion to their combined wealth, according to a report. Names like Facebook CEO Mark Zuckerberg were seen with new additions like American social media star Kylie Jenner, who became the youngest self-made billionaire after her company 'Kylie Cosmetics', signed an exclusive partnership with Ulta Beauty Inc. Jenner was not alone as a lot of people making money through social media, including the Korean family who helped popularise the viral baby shark song, who are not worth $125 million. Zuckerberg topped the list with an increase in net worth by $27.3 billion. He Xiangjian- founder of China's biggest air conditioner exporter- took the second spot with an added $23.3 billion to his wealth. The co-founder of Microsoft Bill Gates came in third with an addition of $22.7 billion to his fortune. Amazon Inc's owner Jeff Bezos lost $9 billion due to his divorce settlement with wife Mackenzie. However, it is important to note that as the wealth of the rich people is increasing, the gap between the rich and poor is also widening. With reports claiming that the world's 26 richest people control as much wealth as the poorest 50 per cent. While the rich may be making merry this New Year's Eve, their rising net worth is surely going to increase calls for equitable distribution of wealth.

World's richest get richer, adding $1.2 trillion to their combined wealth

Union Home Minister Amit Shah on Friday said that the country is witnessing the "temporary effects of a global slowdown" and that Finance Minister Nirmala Sitharaman and her deputy are working day and night to fight it.

Shah stated that he believed that India will be the first one to pull out of this global economic slowdown.&nbsp;

"I believe the Indian economy will be the first to be free from the slowdown in the world," Shah said at an event today.&nbsp;

Shah's comments came while he was addressing investors at the first groundbreaking ceremony of Himachal Pradesh Global Investors Meet-2019 in Shimla, Himachal Pradesh.

Shah said the government was working to deal with the effect of the slowdown.

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<a href="https://twitter.com/hashtag/WATCH?src=hash&amp;ref_src=twsrc%5Etfw">#WATCH</a> Home Minister Amit Shah in Shimla: You are seeing temporary effects of global slowdown. Under leadership of Modi ji, Nirmala Sitharaman ji and Anurag ji are working day&amp;night to fight it. I believe, Indian economy will be the first to be free from slowdown in the world. <a href="https://t.co/eNhv2picnU">pic.twitter.com/eNhv2picnU</a>
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"What we are witnessing is a temporary effect of a global slowdown. To fight it, the government is working on different types of plans," he said.

"I am confident that within some time we will be able to come out of it and we will emerge as the first nation in the world free from the global slowdown," he said.

The minister said Finance Minister Nirmala Sitharaman and her deputy Anurag Thakur were working on working are on various plans to fight with this global slowdown under the leadership of Prime Minister Narendra Modi.

Meanwhile, the Reserve Bank of India on Friday released its '<a href="https://www.wionews.com/business-economy/indias-financial-system-stable-despite-weakening-domestic-growth-rbi-270631">Financial Stability Report</a>' and said that despite weakening domestic growth, India's financial system remains stable, news agency ANI reported.&nbsp;

The RBI stated that the banking sector's resilience has improved, however, "risks from global/domestic economic uncertainties and geopolitical developments persist".&nbsp;

(With inputs from ANI)&nbsp;

Union Home Minister Amit Shah on Friday said that the country is witnessing the "temporary effects of a global slowdown" and that Finance Minister Nirmala Sitharaman and her deputy are working day and night to fight it.

Union Home Minister Amit Shah on Friday said that the country is witnessing the "temporary effects of a global slowdown" and that Finance Minister Nirmala Sitharaman and her deputy are working day and night to fight it. Shah stated that he believed that India will be the first one to pull out of this global economic slowdown. "I believe the Indian economy will be the first to be free from the slowdown in the world," Shah said at an event today. Shah's comments came while he was addressing investors at the first groundbreaking ceremony of Himachal Pradesh Global Investors Meet-2019 in Shimla, Himachal Pradesh. Shah said the government was working to deal with the effect of the slowdown. #WATCH Home Minister Amit Shah in Shimla: You are seeing temporary effects of global slowdown. Under leadership of Modi ji, Nirmala Sitharaman ji and Anurag ji are working day&night to fight it. I believe, Indian economy will be the first to be free from slowdown in the world. pic.twitter.com/eNhv2picnU — ANI (@ANI) December 27, 2019 × "What we are witnessing is a temporary effect of a global slowdown. To fight it, the government is working on different types of plans," he said. "I am confident that within some time we will be able to come out of it and we will emerge as the first nation in the world free from the global slowdown," he said. The minister said Finance Minister Nirmala Sitharaman and her deputy Anurag Thakur were working on working are on various plans to fight with this global slowdown under the leadership of Prime Minister Narendra Modi. Meanwhile, the Reserve Bank of India on Friday released its 'Financial Stability Report' and said that despite weakening domestic growth, India's financial system remains stable, news agency ANI reported. The RBI stated that the banking sector's resilience has improved, however, "risks from global/domestic economic uncertainties and geopolitical developments persist". (With inputs from ANI)

India is witnessing temporary effects of global slowdown: Amit Shah 

Uber co-founder Travis Kalanick has finally left the company that he created. Kalanick was the CEO of uber until 2017. A string of scandals in the company forced him to step down.

But — he is not leaving empty-handed. He has sold more than two billion dollars worth of Uber shares.

Founders of big tech companies leaving their creations to build bigger empires and this are more common than you'd imagine.

There is a growing tribe of seasoned entrepreneurs — who exited the businesses they built. They have either become investors or opened new businesses. Some big players are dabbling in both arenas.

Either way — the start-up revolution around the world has given birth to a new league of billionaires.

Kalanick created the biggest taxi aggregator on the planet. But — Travis became kryptonite for Uber.

He had to step down as CEO of Uber in June 2017. This was after a series of privacy scandals — complaints of discrimination — and sexual harassment had hit the company.

Two years later — Kalanick is severing his last remaining tie with the company he created. He will step down from the board of directors of Uber by the end of this year.

But, Uber made Travis Kalanick a billionaire. He was the biggest individual shareholder of this company. Since his departure — Kalanick has been actively selling his stake. The report says he has already sold more than two billion dollars worth of shares.

Kalanick started another startup — that operates cooking facilities to prepare food for delivery.

Kalanick is not the first to follow this playbook. Steve jobs started next — after his unceremonious exit from apple.

He was also a majority stakeholder in Pixar — the animation studio that created movies like toy story, finding Nemo and wall-e.

Of course, jobs later made a come back at the apple. He sold Pixar to Disney — next was acquired by apple.

Sachin and Binny Bansal too left the unicorn they created. Both of them sold Flipkart to Walmart in 2018.

Sachin Bansal left the company the moment it was acquired. Binny Bansal was forced to resign after an unproven allegation of personal misconduct emerged.

But both the founders were quick to make a comeback. Sachin Bansal made a slew of investments in startups and established players.

According to one report — he has made 18 investments in multiple companies since his departure from Flipkart.

Binny Bansal too is stepping up his investments. Earlier this year — reports claimed that he was launching his venture capital fund.

Plans for a mentoring organisation for startups are also in the pipeline.

Uber co-founder Travis Kalanick has finally left the company that he created. Kalanick was the CEO of uber until 2017. A string of scandals in the company forced him to step down.

Uber co-founder Travis Kalanick has finally left the company that he created. Kalanick was the CEO of uber until 2017. A string of scandals in the company forced him to step down. But — he is not leaving empty-handed. He has sold more than two billion dollars worth of Uber shares. Founders of big tech companies leaving their creations to build bigger empires and this are more common than you'd imagine. There is a growing tribe of seasoned entrepreneurs — who exited the businesses they built. They have either become investors or opened new businesses. Some big players are dabbling in both arenas. Either way — the start-up revolution around the world has given birth to a new league of billionaires. Kalanick created the biggest taxi aggregator on the planet. But — Travis became kryptonite for Uber. He had to step down as CEO of Uber in June 2017. This was after a series of privacy scandals — complaints of discrimination — and sexual harassment had hit the company. Two years later — Kalanick is severing his last remaining tie with the company he created. He will step down from the board of directors of Uber by the end of this year. But, Uber made Travis Kalanick a billionaire. He was the biggest individual shareholder of this company. Since his departure — Kalanick has been actively selling his stake. The report says he has already sold more than two billion dollars worth of shares. Kalanick started another startup — that operates cooking facilities to prepare food for delivery. Kalanick is not the first to follow this playbook. Steve jobs started next — after his unceremonious exit from apple. He was also a majority stakeholder in Pixar — the animation studio that created movies like toy story, finding Nemo and wall-e. Of course, jobs later made a come back at the apple. He sold Pixar to Disney — next was acquired by apple. Sachin and Binny Bansal too left the unicorn they created. Both of them sold Flipkart to Walmart in 2018. Sachin Bansal left the company the moment it was acquired. Binny Bansal was forced to resign after an unproven allegation of personal misconduct emerged. But both the founders were quick to make a comeback. Sachin Bansal made a slew of investments in startups and established players. According to one report — he has made 18 investments in multiple companies since his departure from Flipkart. Binny Bansal too is stepping up his investments. Earlier this year — reports claimed that he was launching his venture capital fund. Plans for a mentoring organisation for startups are also in the pipeline.

Start-up revolution: New age billionaires leaving boardrooms to focus on new business

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