Southeast Asian foreign ministers opened their annual meeting in Bangkok Wednesday with a call from host Thailand for deeper cooperation to expand trade and bolster prosperity in the region amid rising global challenges.

Opening of ASEAN foreign ministers meeting

Economic growth in the eurozone slowed to 0.2 per cent in the second quarter of the year, down from 0.4 per cent in the previous three months.&nbsp;

Eurostat's figures, published Wednesday, also showed inflation in the 19-nation single currency group dropping from 1.3 per cent in June to 1.1 in July.

This falls even further short of the European Central bank's 2.0 per cent target for a healthy economy and amounts to further evidence of a worrying slowdown.&nbsp;

The seasonally adjusted unemployment rate nevertheless also fell, from a revised 7.6 per cent in May to 7.5 in June, its lowest level in ten years.

The wider 28-member European Union, which includes countries outside the euro, also saw second-quarter growth shrink to 0.2 per cent, down from 0.5 in the previous period.

All these figures were in line with market expectations as estimated by data firm Factset.

Economic growth in the eurozone slowed to 0.2 per cent in the second quarter of the year, down from 0.4 per cent in the previous three months. Eurostat's figures, published Wednesday, also showed inflation in the 19-nation single currency group dropping from 1.

Economic growth in the eurozone slowed to 0.2 per cent in the second quarter of the year, down from 0.4 per cent in the previous three months. Eurostat's figures, published Wednesday, also showed inflation in the 19-nation single currency group dropping from 1.3 per cent in June to 1.1 in July. This falls even further short of the European Central bank's 2.0 per cent target for a healthy economy and amounts to further evidence of a worrying slowdown. The seasonally adjusted unemployment rate nevertheless also fell, from a revised 7.6 per cent in May to 7.5 in June, its lowest level in ten years. The wider 28-member European Union, which includes countries outside the euro, also saw second-quarter growth shrink to 0.2 per cent, down from 0.5 in the previous period. All these figures were in line with market expectations as estimated by data firm Factset.

Eurozone growth slows to 0.2% in second quarter

American consumer optimism rebounded unexpectedly this month among American consumers, recovering from a trade-war fright in June, according to a survey released Tuesday.

Consumers again say jobs are plentiful, business conditions are good and incomes are likely to rise in the near future, according to Conference Board's monthly report.

The gains in consumer confidence overshot economists' expectations and should support consumption in the coming months while the economy slows.

The Conference Board's consumer confidence index rose more than 10 points to 135.7 in July.&nbsp;

"After a sharp decline in June, driven by an escalation in trade and tariff tensions, Consumer Confidence rebounded in July to its highest level this year," Lynn Franco, the Conference Board's head of economic indicators, said in a statement.

The report coincided with Commerce Department data showing a fifth consecutive monthly increase in personal income, suggesting retail spending should be healthy in the summer.

The Conference Board data showed views about the present and expectations for the near future rose sharply.&nbsp;

Confidence dimmed in June after trade talks with Beijing collapsed in May, prompting Trump to jack up duties on hundreds of billions in Chinese imports. He also threatened Mexico with steep tariffs in a border policy dispute.&nbsp;

But the US leader agreed with Chinese President Xi Jinping late last month to resume negotiations and cease further hostilities.

The share of survey respondents who say business conditions are good rose to the highest level since February while those saying jobs are plentiful hit its highest point since April.

Most survey respondents expected business conditions, employment and incomes to remain about the same over the next six months -- but the share of those expecting improvements in each rose modestly.

RDQ Economics said Tuesday the confidence data weakened the case for cutting interest rates, as the Federal Reserve is widely expected to do on Wednesday.

The survey "points to strength that is inconsistent with the need for an insurance cut and the case for one-and-done for now has grown," RDQ said in a note to clients.

American consumer optimism rebounded unexpectedly this month among American consumers, recovering from a trade-war fright in June, according to a survey released Tuesday.

American consumer optimism rebounded unexpectedly this month among American consumers, recovering from a trade-war fright in June, according to a survey released Tuesday. Consumers again say jobs are plentiful, business conditions are good and incomes are likely to rise in the near future, according to Conference Board's monthly report. The gains in consumer confidence overshot economists' expectations and should support consumption in the coming months while the economy slows. The Conference Board's consumer confidence index rose more than 10 points to 135.7 in July. "After a sharp decline in June, driven by an escalation in trade and tariff tensions, Consumer Confidence rebounded in July to its highest level this year," Lynn Franco, the Conference Board's head of economic indicators, said in a statement. The report coincided with Commerce Department data showing a fifth consecutive monthly increase in personal income, suggesting retail spending should be healthy in the summer. The Conference Board data showed views about the present and expectations for the near future rose sharply. Confidence dimmed in June after trade talks with Beijing collapsed in May, prompting Trump to jack up duties on hundreds of billions in Chinese imports. He also threatened Mexico with steep tariffs in a border policy dispute. But the US leader agreed with Chinese President Xi Jinping late last month to resume negotiations and cease further hostilities. The share of survey respondents who say business conditions are good rose to the highest level since February while those saying jobs are plentiful hit its highest point since April. Most survey respondents expected business conditions, employment and incomes to remain about the same over the next six months -- but the share of those expecting improvements in each rose modestly. RDQ Economics said Tuesday the confidence data weakened the case for cutting interest rates, as the Federal Reserve is widely expected to do on Wednesday. The survey "points to strength that is inconsistent with the need for an insurance cut and the case for one-and-done for now has grown," RDQ said in a note to clients.

US consumer confidence highest of 2019 as tariff shock abates

Finance Minister<a href="https://www.wionews.com/.../nirmala-sitharaman-the-first-full-time-woman- defence-minister-retained-as-union-minister-222866"> Nirmala Sitharaman</a> has ruled out reconsidering a plan to issue foreign currency overseas sovereign bonds, she was quoted as saying in an interview published on Sunday, despite warnings of long-term risk for the economy.

On Thursday, Reuters reported that the Prime Minister's Office (PMO) wanted the finance ministry to reassess the idea of issuing foreign currency overseas sovereign bonds and seek wider consultation.

"I am not doing any review. I have not been asked by anybody to do a review," Sitharaman told the Economic Times.

This month, Sitharaman, presenting the&nbsp;<a href="https://www.wionews.com/videos/budget-2019-nirmala-sitharaman-focuses-on-gaon-gareeb-aur-kisan-in-her-first-budget-233232">budget</a> for the fiscal year 2019/2020 that began on April 1, said India would look to issue overseas foreign currency sovereign bonds in addition to raising funds from the domestic market.

The proposal has been criticised by former heads of the Reserve Bank of India, economists and allies of the ruling Bharatiya Janata Party, who argue it could create long-term economic risks by exposing the government's liabilities to currency fluctuations.

“The government would start raising a part of its gross borrowing programme in external markets in external currencies. This will also have a beneficial impact on the demand situation for government securities in the domestic market,” Sitharaman told the Economic Times.

The government plans to borrow nearly $10 billion from the foreign overseas market, out of total planned borrowing of about $103 billion in 2019/20.

Sitharaman told the newspaper that details such as the timing of the issue and the exact size had not been worked out.

Finance Minister Nirmala Sitharaman has ruled out reconsidering a plan to issue foreign currency overseas sovereign bonds, she was quoted as saying in an interview published on Sunday, despite warnings of long-term risk for the economy.

Finance Minister Nirmala Sitharaman has ruled out reconsidering a plan to issue foreign currency overseas sovereign bonds, she was quoted as saying in an interview published on Sunday, despite warnings of long-term risk for the economy. On Thursday, Reuters reported that the Prime Minister's Office (PMO) wanted the finance ministry to reassess the idea of issuing foreign currency overseas sovereign bonds and seek wider consultation. "I am not doing any review. I have not been asked by anybody to do a review," Sitharaman told the Economic Times. This month, Sitharaman, presenting the budget for the fiscal year 2019/2020 that began on April 1, said India would look to issue overseas foreign currency sovereign bonds in addition to raising funds from the domestic market. The proposal has been criticised by former heads of the Reserve Bank of India, economists and allies of the ruling Bharatiya Janata Party, who argue it could create long-term economic risks by exposing the government's liabilities to currency fluctuations. “The government would start raising a part of its gross borrowing programme in external markets in external currencies. This will also have a beneficial impact on the demand situation for government securities in the domestic market,” Sitharaman told the Economic Times. The government plans to borrow nearly $10 billion from the foreign overseas market, out of total planned borrowing of about $103 billion in 2019/20. Sitharaman told the newspaper that details such as the timing of the issue and the exact size had not been worked out.

Finance Minister Nirmala Sitharaman says no rethink on overseas sovereign bonds: Report

Former foreign minister <a href="https://www.wionews.com/world/boris-johnson-wins-conservative-party-leadership-race-set-to-become-uk-pm-237941">Boris Johnson</a> was elected leader of Britain's governing Conservative Party on Tuesday, and will take over as prime minister when Theresa May steps down on Wednesday.

With the leadership campaign largely dominated by Brexit, <a href="https://www.wionews.com/world/boris-johnson-a-divisive-politician-with-do-or-die-pledge-over-brexit-237944">Johnson has set out little</a> in the way of firm policies, but below are some of his positions on key issues:

Iran

Johnson has said while the 2015 nuclear deal is looking "increasingly frail" and ways need to be found to constrain Iran's "disruptive behaviour", engaging with the Iranians and seeking to persuade them not to pursue a nuclear weapons programme is the right way forward.

He has so far shown little sign of moving closer to US President Donald Trump's more hardline approach, instead saying he agreed with the position taken by European countries to encourage a return to diplomacy. He has said he would not currently back military action.

"I am not going to pretend that the mullahs of Tehran are easy people to deal with or that they are anything other than a disruptive, dangerous, difficult regime, they certainly are," he said during a leadership debate earlier this month.

"But ... if you asked me whether I think we should now, were I to be prime minister now, would I be supporting military action against Iran? Then the answer is no."

Hong Kong

As protests erupted in the former British colony earlier this month over a proposed extradition bill, and a war of words ensued between Britain and China, Johnson told Reuters the people of Hong Kong were "within their rights to be very sceptical, very anxious" about the legislation.

"I do support them and I will happily speak up for them and back them every inch of the way. And I would stress to our friends in Beijing that the one country, two systems approach has worked, is working and should not be cast aside," he said.

Huawei

A final decision on whether to include China's Huawei in Britain's 5G telecoms network has been stalled by May stepping down. Johnson has said while there can be significant benefits to investment from other countries, he would not compromise Britain's national security infrastructure.

"You would not expect me as prime minister to do anything to compromise the ability of our fantastic intelligence services to share information as they do, particularly with our five eyes partners, so that is the principle that will guide us."

Relationship with the United States

Johnson is keen to maintain a strong relationship with the United States and British media have reported he is considering a visit to meet Trump early in his premiership.

His reluctance to antagonise Trump was evident earlier this month when he failed to defend Britain's ambassador to Washington after diplomatic memos in which Kim Darroch described Trump's administration as "inept" were leaked to a newspaper.

Instead Johnson said he had a good relationship with the White House and it was "very important that we should have a close friendship, a close partnership with the United States".

Johnson has since said Darroch told him the lacklustre support was a factor in his decision to resign.

During a leadership debate, Johnson did criticise Trump for his comments about four congresswomen but declined to describe the remarks as racist.

"If you are the leader of great multi-racial, multi-cultural society you simply cannot use that kind of language about sending people back to where they came from, that went out decades and decades ago and thank heavens for that so it is totally unacceptable," he said.

The economy

Johnson has vowed to spend billions of pounds on public services, infrastructure and tax cuts including promises to increase spending on education, transport, superfast broadband and police and end a public sector pay freeze.

He has said he will tap into the 27 billion pounds of "fiscal headroom" that has built up in the public finances, referring to the difference between the government's target for the budget deficit and its projected size.

"Believe me there is cash now available ... I'm prepared to borrow to finance certain great objectives but overall we will keep fiscal responsibility," he said.

British media have reported he is preparing an emergency budget including aggressive tax cuts, an overhaul of the stamp duty property tax and an assault on regulation if there is a no-deal Brexit.

During Johnson's time as mayor of London, he championed financial services but has been trying to rebuild ties with company executives after an expletive against business.

Tax cuts

Johnson has said there is room to make tax cuts and has pledged to raise the level at which the higher rate of income tax is paid. He also wants to raise the threshold at which people start to pay National Insurance.

"We should be raising thresholds of income tax – so that we help the huge numbers that have been captured in the higher rate by fiscal drag. We can go for much greater economic growth – and still be the cleanest, greenest society on earth," he said.

He has also said Britain should cut business taxes but has indicated internet giants could be forced to pay more.

"It's deeply unfair that high street businesses are paying tax through the nose ... whereas the internet giants, the FAANGs - Facebook, Amazon, Netflix and Google - are paying virtually nothing," he said.

Former foreign minister Boris Johnson was elected leader of Britain's governing Conservative Party on Tuesday, and will take over as prime minister when Theresa May steps down on Wednesday.

Former foreign minister Boris Johnson was elected leader of Britain's governing Conservative Party on Tuesday, and will take over as prime minister when Theresa May steps down on Wednesday. With the leadership campaign largely dominated by Brexit, Johnson has set out little in the way of firm policies, but below are some of his positions on key issues: Iran Johnson has said while the 2015 nuclear deal is looking "increasingly frail" and ways need to be found to constrain Iran's "disruptive behaviour", engaging with the Iranians and seeking to persuade them not to pursue a nuclear weapons programme is the right way forward. He has so far shown little sign of moving closer to US President Donald Trump's more hardline approach, instead saying he agreed with the position taken by European countries to encourage a return to diplomacy. He has said he would not currently back military action. "I am not going to pretend that the mullahs of Tehran are easy people to deal with or that they are anything other than a disruptive, dangerous, difficult regime, they certainly are," he said during a leadership debate earlier this month. "But ... if you asked me whether I think we should now, were I to be prime minister now, would I be supporting military action against Iran? Then the answer is no." Hong Kong As protests erupted in the former British colony earlier this month over a proposed extradition bill, and a war of words ensued between Britain and China, Johnson told Reuters the people of Hong Kong were "within their rights to be very sceptical, very anxious" about the legislation. "I do support them and I will happily speak up for them and back them every inch of the way. And I would stress to our friends in Beijing that the one country, two systems approach has worked, is working and should not be cast aside," he said. Huawei A final decision on whether to include China's Huawei in Britain's 5G telecoms network has been stalled by May stepping down. Johnson has said while there can be significant benefits to investment from other countries, he would not compromise Britain's national security infrastructure. "You would not expect me as prime minister to do anything to compromise the ability of our fantastic intelligence services to share information as they do, particularly with our five eyes partners, so that is the principle that will guide us." Relationship with the United States Johnson is keen to maintain a strong relationship with the United States and British media have reported he is considering a visit to meet Trump early in his premiership. His reluctance to antagonise Trump was evident earlier this month when he failed to defend Britain's ambassador to Washington after diplomatic memos in which Kim Darroch described Trump's administration as "inept" were leaked to a newspaper. Instead Johnson said he had a good relationship with the White House and it was "very important that we should have a close friendship, a close partnership with the United States". Johnson has since said Darroch told him the lacklustre support was a factor in his decision to resign. During a leadership debate, Johnson did criticise Trump for his comments about four congresswomen but declined to describe the remarks as racist. "If you are the leader of great multi-racial, multi-cultural society you simply cannot use that kind of language about sending people back to where they came from, that went out decades and decades ago and thank heavens for that so it is totally unacceptable," he said. The economy Johnson has vowed to spend billions of pounds on public services, infrastructure and tax cuts including promises to increase spending on education, transport, superfast broadband and police and end a public sector pay freeze. He has said he will tap into the 27 billion pounds of "fiscal headroom" that has built up in the public finances, referring to the difference between the government's target for the budget deficit and its projected size. "Believe me there is cash now available ... I'm prepared to borrow to finance certain great objectives but overall we will keep fiscal responsibility," he said. British media have reported he is preparing an emergency budget including aggressive tax cuts, an overhaul of the stamp duty property tax and an assault on regulation if there is a no-deal Brexit. During Johnson's time as mayor of London, he championed financial services but has been trying to rebuild ties with company executives after an expletive against business. Tax cuts Johnson has said there is room to make tax cuts and has pledged to raise the level at which the higher rate of income tax is paid. He also wants to raise the threshold at which people start to pay National Insurance. "We should be raising thresholds of income tax – so that we help the huge numbers that have been captured in the higher rate by fiscal drag. We can go for much greater economic growth – and still be the cleanest, greenest society on earth," he said. He has also said Britain should cut business taxes but has indicated internet giants could be forced to pay more. "It's deeply unfair that high street businesses are paying tax through the nose ... whereas the internet giants, the FAANGs - Facebook, Amazon, Netflix and Google - are paying virtually nothing," he said.

Boris Johnson's stance on Iran, Trump, Huawei and the economy

The Narendra <a href="https://www.wionews.com/india-news/government-puts-312-officials-on-compulsory-retirement-over-negligence-lack-of-integrity-234561">Modi government</a> has completed 50 days in its second stint. And this period has been hectic as well as transformative for the country.

Developments on the domestic front, the introduction of<a href="https://www.wionews.com/videos/budget-2019-government-rewards-middle-class-233299"> welfare schemes</a> for farmers and a healthy environment for start-ups, traders and industry - every aspect of India's national life has seen developments happen.

From surgical strike against corruption in the form of removal of tainted bureaucrats to clean-up of Jammu and Kashmir Bank, the Modi government has again shown its commitment and resolve to work tirelessly for the welfare of the country.

The <a href="https://www.wionews.com/business-economy/budget-2019-nirmala-sitharaman-to-launch-study-in-india-initiative-to-encourage-foreign-students-233240">Budget presented by Nirmala Sitharaman</a> earlier this month laid a roadmap for a US $5 trillion economy as well as for doubling farmer income. During 2019-20 to 2021-22, 1.95 crore houses are proposed to be provided to eligible beneficiaries under the Pradhan Mantri Awas Yojana - Gramin (PMAY-Rural). By 2022, the 75th year of India's Independence, the government will look to ensure that every single rural family has electricity and a clean cooking gas connection.

Watch: Budget 2019 reflects Modi's vision

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/budget-2019-budget-reflects-modis-vision-233385/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The Budget also gave provisions for electric vehicles and of the mission of taking electricity and cooking gas to every home.

When it comes to creating a business-friendly climate, the government has made corporate tax rate 25 per cent for companies with an annual turnover up to Rs 400 crore. This threshold used to be Rs 250 crore earlier. This will cover 99.3% of all companies. The government is also to expedite streamlining multiple labour laws into a set of four labour codes.

Zero Budget Farming will be promoted, and 10,000 new Farmer Producer Organisations (FPO) will be formed. These FPOs will help small and marginal farmers team up to get lower rates for inputs and sell produce at higher rates.

When it comes to the pro-people decisions taken by the government in the first 50 days of its second stint, the Centre has introduced labour reforms, enacted strong laws against frauds who dupe the poor, introduced death penalty for child sexual assault, and offered higher MSP for Kharif crops among other measures.

PM Modi has already made waves on the international arena as well. BIMSTEC leaders arrived to witness his swearing-in. PM Modi was one of the most sought-after leaders for pull-aside meetings in the recent G-20 Summit. He visited Sri Lanka and Maldives and showed his strong belief in 'Neighbourhood First' policy.

He strongly articulated India's position against terror at the SCO Summit and also led the world in celebrating International Yoga Day.

The Narendra Modi government has completed 50 days in its second stint. And this period has been hectic as well as transformative for the country. Developments on the domestic front, the introduction of welfare schemes for farmers and a healthy environment for start-ups, traders and industry - every aspect of India's national life has seen developments happen.

The Narendra Modi government has completed 50 days in its second stint. And this period has been hectic as well as transformative for the country. Developments on the domestic front, the introduction of welfare schemes for farmers and a healthy environment for start-ups, traders and industry - every aspect of India's national life has seen developments happen. From surgical strike against corruption in the form of removal of tainted bureaucrats to clean-up of Jammu and Kashmir Bank, the Modi government has again shown its commitment and resolve to work tirelessly for the welfare of the country. The Budget presented by Nirmala Sitharaman earlier this month laid a roadmap for a US $5 trillion economy as well as for doubling farmer income. During 2019-20 to 2021-22, 1.95 crore houses are proposed to be provided to eligible beneficiaries under the Pradhan Mantri Awas Yojana - Gramin (PMAY-Rural). By 2022, the 75th year of India's Independence, the government will look to ensure that every single rural family has electricity and a clean cooking gas connection. Watch: Budget 2019 reflects Modi's vision The Budget also gave provisions for electric vehicles and of the mission of taking electricity and cooking gas to every home. When it comes to creating a business-friendly climate, the government has made corporate tax rate 25 per cent for companies with an annual turnover up to Rs 400 crore. This threshold used to be Rs 250 crore earlier. This will cover 99.3% of all companies. The government is also to expedite streamlining multiple labour laws into a set of four labour codes. Zero Budget Farming will be promoted, and 10,000 new Farmer Producer Organisations (FPO) will be formed. These FPOs will help small and marginal farmers team up to get lower rates for inputs and sell produce at higher rates. When it comes to the pro-people decisions taken by the government in the first 50 days of its second stint, the Centre has introduced labour reforms, enacted strong laws against frauds who dupe the poor, introduced death penalty for child sexual assault, and offered higher MSP for Kharif crops among other measures. PM Modi has already made waves on the international arena as well. BIMSTEC leaders arrived to witness his swearing-in. PM Modi was one of the most sought-after leaders for pull-aside meetings in the recent G-20 Summit. He visited Sri Lanka and Maldives and showed his strong belief in 'Neighbourhood First' policy. He strongly articulated India's position against terror at the SCO Summit and also led the world in celebrating International Yoga Day.

In 50 days, Modi 2.0 laid foundation for US $5 trillion economy

Union Minister Piyush Goyal has voiced his confidence by saying that India will be a US$5 trillion economy by 2025 and the Centre is well poised towards achieving the target.

"I am very confident that by 2025 we will be a US$5 trillion economy. We are well poised towards achieving that, focused on different aspects of the economy which will take us there," the Union Minister said on Monday at UK-India Joint Economic and Trade Committee meeting in London.

He added, "We have opened up opportunities for single-brand retail and are easing some detrimental clauses of our policy in next few weeks which will help single brand retail come in a bigger way to our country."

Commerce and Industry and Railways Minister Goyal further said that the Centre has restrictions on multi-brand retail and have requested companies around the world to respect Indian sensitivities on restrictions of foreign investment and multi-brand retail.

"Particularly e-commerce companies coming to India would have to ensure that they stay within the letter and spirit of the law when it comes to multi-brand retail and our policies around that," he said.

Goyal is on a three-day visit to the UK to attend the India Day conclave.&nbsp;

Union Minister Piyush Goyal has voiced his confidence by saying that India will be a US$5 trillion economy by 2025 and the Centre is well poised towards achieving the target.

Union Minister Piyush Goyal has voiced his confidence by saying that India will be a US$5 trillion economy by 2025 and the Centre is well poised towards achieving the target. "I am very confident that by 2025 we will be a US$5 trillion economy. We are well poised towards achieving that, focused on different aspects of the economy which will take us there," the Union Minister said on Monday at UK-India Joint Economic and Trade Committee meeting in London. He added, "We have opened up opportunities for single-brand retail and are easing some detrimental clauses of our policy in next few weeks which will help single brand retail come in a bigger way to our country." Commerce and Industry and Railways Minister Goyal further said that the Centre has restrictions on multi-brand retail and have requested companies around the world to respect Indian sensitivities on restrictions of foreign investment and multi-brand retail. "Particularly e-commerce companies coming to India would have to ensure that they stay within the letter and spirit of the law when it comes to multi-brand retail and our policies around that," he said. Goyal is on a three-day visit to the UK to attend the India Day conclave.

India will be $5 trillion economy by 2025: Piyush Goyal

Gold rose on Friday and was on track to post a weekly gain, supported by an easing dollar and weaker than expected Chinese trade data which stoked global growth concerns.

Spot gold was up 0.3% at $1,408.27 per ounce at 1136 GMT.

<a href="https://www.wionews.com/entertainment/bollywood-celebrities-applaud-dutee-chand-for-winning-gold-in-world-university-235221">Gold</a> has risen about 0.6% so far this week.

<a href="https://www.wionews.com/business-economy/us-delegation-to-discuss-indias-new-e-commerce-rules-during-trade-talks-235262">US</a> gold futures rose 0.2% to $1,409.8 an ounce.

"We have <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/opinions/us-china-trade-war-is-making-china-stronger-234526&amp;sa=U&amp;ved=2ahUKEwiN-qTzsK_jAhXVfd4KHd9NDEsQFjAJegQIABAC&amp;usg=AOvVaw2mZbA9dK8Er7gAUzoNsiFc">(China's) trade</a> data out this morning which disappointed mainly on the import side, suggesting the Chinese economy is still struggling," said Julius Baer analyst Carsten Menke.

"This provided fuel to the growth worries, so that's why gold as a haven is benefiting."

China's exports fell in June as the United States ramped up trade pressure, while imports shrank more than expected, pointing to further strains on the world's second-largest economy.

Also helping gold was the dollar index, which eased for a third straight session as stronger-than-expected US <a href="https://www.wionews.com/business-economy/euro-zone-growth-inflation-outlook-cut-as-risks-from-us-trade-grow-234720/amp">inflation</a> data failed to shake convictions that the Federal Reserve will start cutting interest rates this month.

Despite the robust core US consumer price index data, money markets still indicated one rate cut at the end of July and a cumulative 64 basis points in cuts by the end of 2019.

"The comments from the Fed and the minutes this week were on the dovish side and have given the market hope that there might be a chance of a 50 basis point cut," said ABN Amro analyst Georgette Boele.

Fed Chair Jerome Powell indicated on Thursday that a rate cut is likely at the Fed's next meeting as businesses slow investment due to trade disputes and their impact on global growth.

Spot gold has risen more than 11% since it touched the year's low of $1,265.85 per ounce in May, mainly on expectations of aggressive monetary policy easing and growth worries.

"The market is clearly more aggressive than we are, so there is some potential for disappointment on the rate side," Menke said.

"So, if we don't get three rate cuts by the end of the year this could be a trigger for a little bit of a short-term correction in gold."

In the physical market, gold buying stalled in top Asian hubs this week as consumers sold back bullion to cash in on the steep price rally.

A recent import duty hike further dented waning interest in an Indian market hit by a surge in local rates.

Elsewhere, silver and platinum were up 0.1% at $15.13 and $821 per ounce respectively.

Palladium fell 0.2% to $1,557.50 an ounce, edging away from a 16-week peak of $1,605.52 touched in the previous session.

Gold rose on Friday and was on track to post a weekly gain, supported by an easing dollar and weaker than expected Chinese trade data which stoked global growth concerns.

Gold rose on Friday and was on track to post a weekly gain, supported by an easing dollar and weaker than expected Chinese trade data which stoked global growth concerns. Spot gold was up 0.3% at $1,408.27 per ounce at 1136 GMT. Gold has risen about 0.6% so far this week. US gold futures rose 0.2% to $1,409.8 an ounce. "We have (China's) trade data out this morning which disappointed mainly on the import side, suggesting the Chinese economy is still struggling," said Julius Baer analyst Carsten Menke. "This provided fuel to the growth worries, so that's why gold as a haven is benefiting." China's exports fell in June as the United States ramped up trade pressure, while imports shrank more than expected, pointing to further strains on the world's second-largest economy. Also helping gold was the dollar index, which eased for a third straight session as stronger-than-expected US inflation data failed to shake convictions that the Federal Reserve will start cutting interest rates this month. Despite the robust core US consumer price index data, money markets still indicated one rate cut at the end of July and a cumulative 64 basis points in cuts by the end of 2019. "The comments from the Fed and the minutes this week were on the dovish side and have given the market hope that there might be a chance of a 50 basis point cut," said ABN Amro analyst Georgette Boele. Fed Chair Jerome Powell indicated on Thursday that a rate cut is likely at the Fed's next meeting as businesses slow investment due to trade disputes and their impact on global growth. Spot gold has risen more than 11% since it touched the year's low of $1,265.85 per ounce in May, mainly on expectations of aggressive monetary policy easing and growth worries. "The market is clearly more aggressive than we are, so there is some potential for disappointment on the rate side," Menke said. "So, if we don't get three rate cuts by the end of the year this could be a trigger for a little bit of a short-term correction in gold." In the physical market, gold buying stalled in top Asian hubs this week as consumers sold back bullion to cash in on the steep price rally. A recent import duty hike further dented waning interest in an Indian market hit by a surge in local rates. Elsewhere, silver and platinum were up 0.1% at $15.13 and $821 per ounce respectively. Palladium fell 0.2% to $1,557.50 an ounce, edging away from a 16-week peak of $1,605.52 touched in the previous session.

Gold edges up on weaker dollar, China data fuels growth concerns

The BBC defines the gig market as ‘a labour market characterised by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs.’

The term ‘Gig Economy’ has gained popularity in the last few years. Educational gap, changing attitude towards work, flexible schedule and integrated technology are contributing to an evolving gig market.

The share of gig economy workers in the global marketplace rose to 15.8 per cent in 2015, as compared to 10.1 per cent in 2005.

Experts suggest that half of the population will adopt freelancing by 2020 as both employees and employers find this market more flexible, result-oriented and monetarily profitable.

According to one estimate, 66.6 per cent of companies, including start-ups and large corporations, are hiring gig workers to reduce labour costs.

There are obvious reasons why employers are keen to hire gig economy workers. These workers present an extremely flexible option for businesses aspiring to expand in different verticals, but face seasonal ups and downs.

Such employers have short-term requirements for talent who can help them cultivate businesses in different fields while remaining cost-effective.&nbsp;

Companies like Uber and TaskRabbit depend heavily on gig workers who deliver nimble and satisfactory services to their potential customers.

About 44 per cent of gig workers possess a university degree and 28 per cent are skilled with practical jobs like courier service, driving and more. Companies hire them on a contractual basis for a desired period to get their work done professionally. Freelancers are generally skilled workers, who deliver quality output in less time as compared to the regular workforce in a company.

Moreover, employers with budgetary constraints benefit by hiring talented gig workers on a project-to-project basis.

Businesses like Amazon Flex, Handy and other popular names have set up their market based on gig economy workers. Handy is an eminent app for cleaners and handymen who assist its clients with cleaners and helpers. The business pays $22 an hour to the cleaner and $45 per hour to helpers.

Start-up and large businesses can hire experts for every work profile in the gig economy market. Companies no longer need to struggle with long-term hiring drives where the stability of the employee plays an important part, along with the added cost of work station, infrastructure and regular employee-benefit policies.On the flip side, freelancers get their desired work and the liberty to work anytime from anywhere. More than 68% of freelancers have improved their quality of life by earning on their terms and conditions.

Technology has brought employers and gig economy workers together on a single platform through the Internet and smartphones. Online portals like Fiverr, SEOClerk, Gigbucks, Fiverup and many others have offered a common platform to both the entities where workers can draw up their profiles, which showcase their expertise, along with sample works. Businesses can review the samples and hire candidates who are desirable and meet their business and budgetary needs.&nbsp;

These interactive portals help them to discuss, share feedback, submit work and offer updates on payment transfers, in the process, promoting authenticity and transparency while making communication feasible and easier.

Considering the factors, which mutually benefit the market and its players, the gig economy is expected to increase by 43 per cent&nbsp;globally.

Employees are happily saying goodbye to tedious 9-to-6 jobs to find peace and balance in their lives. Moreover, the freelance market lets them choose their productive time without having to compromise on the quality of their personal lives. Cementing the base of the gig economy, Google has announced that its partnering staffing organisations need to pay gig workers at least $15 per hour along with health benefits.

Policies in favour of freelancers are encouraging more prospective gig workers to join the market. Businesses like GreenLight, Icon, Trupo, Steady are introducing retirement, financial and benefit products for such workers. Such policies, recognising equality and validation of freelance work, are sure to empower the gig economy market and businesses as well.

This entire process demands collaborative effort and contribution from advocates, government and employers to co-exist smoothly, while facilitating sustainable evolution. 
&nbsp;

(This article was originally published on The DNA. Read the<a href="https://www.dnaindia.com/analysis/column-the-gig-economy-is-well-and-truly-here-to-stay-2770247"> original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

 
&nbsp;

&nbsp;

The BBC defines the gig market as ‘a labour market characterised by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs.’ The term ‘Gig Economy’ has gained popularity in the last few years.

The BBC defines the gig market as ‘a labour market characterised by the prevalence of short-term contracts or freelance work, as opposed to permanent jobs.’ The term ‘Gig Economy’ has gained popularity in the last few years. Educational gap, changing attitude towards work, flexible schedule and integrated technology are contributing to an evolving gig market. The share of gig economy workers in the global marketplace rose to 15.8 per cent in 2015, as compared to 10.1 per cent in 2005. Experts suggest that half of the population will adopt freelancing by 2020 as both employees and employers find this market more flexible, result-oriented and monetarily profitable. According to one estimate, 66.6 per cent of companies, including start-ups and large corporations, are hiring gig workers to reduce labour costs. There are obvious reasons why employers are keen to hire gig economy workers. These workers present an extremely flexible option for businesses aspiring to expand in different verticals, but face seasonal ups and downs. Such employers have short-term requirements for talent who can help them cultivate businesses in different fields while remaining cost-effective. Companies like Uber and TaskRabbit depend heavily on gig workers who deliver nimble and satisfactory services to their potential customers. About 44 per cent of gig workers possess a university degree and 28 per cent are skilled with practical jobs like courier service, driving and more. Companies hire them on a contractual basis for a desired period to get their work done professionally. Freelancers are generally skilled workers, who deliver quality output in less time as compared to the regular workforce in a company. Moreover, employers with budgetary constraints benefit by hiring talented gig workers on a project-to-project basis. Businesses like Amazon Flex, Handy and other popular names have set up their market based on gig economy workers. Handy is an eminent app for cleaners and handymen who assist its clients with cleaners and helpers. The business pays $22 an hour to the cleaner and $45 per hour to helpers. Start-up and large businesses can hire experts for every work profile in the gig economy market. Companies no longer need to struggle with long-term hiring drives where the stability of the employee plays an important part, along with the added cost of work station, infrastructure and regular employee-benefit policies.On the flip side, freelancers get their desired work and the liberty to work anytime from anywhere. More than 68% of freelancers have improved their quality of life by earning on their terms and conditions. Technology has brought employers and gig economy workers together on a single platform through the Internet and smartphones. Online portals like Fiverr, SEOClerk, Gigbucks, Fiverup and many others have offered a common platform to both the entities where workers can draw up their profiles, which showcase their expertise, along with sample works. Businesses can review the samples and hire candidates who are desirable and meet their business and budgetary needs. These interactive portals help them to discuss, share feedback, submit work and offer updates on payment transfers, in the process, promoting authenticity and transparency while making communication feasible and easier. Considering the factors, which mutually benefit the market and its players, the gig economy is expected to increase by 43 per cent globally. Employees are happily saying goodbye to tedious 9-to-6 jobs to find peace and balance in their lives. Moreover, the freelance market lets them choose their productive time without having to compromise on the quality of their personal lives. Cementing the base of the gig economy, Google has announced that its partnering staffing organisations need to pay gig workers at least $15 per hour along with health benefits. Policies in favour of freelancers are encouraging more prospective gig workers to join the market. Businesses like GreenLight, Icon, Trupo, Steady are introducing retirement, financial and benefit products for such workers. Such policies, recognising equality and validation of freelance work, are sure to empower the gig economy market and businesses as well. This entire process demands collaborative effort and contribution from advocates, government and employers to co-exist smoothly, while facilitating sustainable evolution. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

The gig economy is well and truly here to stay

Oil fell on Tuesday amid worries over the outlook for demand after the latest signs that international trade disputes have been dragging on the global economy, although tensions in the Middle East offered some support to prices.

Brent crude futures were down 21 cents, or 0.3%, at $63.90 a barrel by 0022 GMT. They fell 12 cents on Monday.

US West Texas Intermediate crude futures were down 20 cents, or 0.4%, at $57.46 a barrel. They rose 15 cents in the previous session.

Oil prices are being pressured by ongoing worries about demand as the US-China trade war, heading into its second year, dampens prospects for global economic growth.

Japan's core machinery orders fell by the most in eight months, data showed on Monday, in a sign the global trade tensions are taking a toll on corporate investment.

Japanese government figures on Tuesday also showed that real wages in the country fell for a fifth straight month.

"The prolonged trade war ... does not seem to be nearing a resolution, and it will keep being a negative factor for crude prices as it impacts global growth forecasts," said Alfonso Esparza, senior market analyst at OANDA in Toronto.

Meanwhile, Goldman Sachs said growth in US shale production was likely to outpace that of global demand at least through 2020, limiting gains in oil prices despite output curbs led by the Organization of the Petroleum Exporting Countries.

Prices are still susceptible to shocks from the lingering tensions in the Middle East, analyst and traders said.

Iran on Monday threatened to restart deactivated centrifuges and step up its enrichment of uranium to 20% in a move that further threatens the 2015 nuclear agreement that Washington abandoned last year.

Washington has imposed sanctions that eliminate benefits Iran was meant to receive in return for agreeing to curbs on its nuclear programme under the 2015 deal with world powers.

The confrontation has brought the United States and Iran close to conflict, with US President Donald Trump calling off air strikes last month minutes before impact.

Oil fell on Tuesday amid worries over the outlook for demand after the latest signs that international trade disputes have been dragging on the global economy, although tensions in the Middle East offered some support to prices.

Oil fell on Tuesday amid worries over the outlook for demand after the latest signs that international trade disputes have been dragging on the global economy, although tensions in the Middle East offered some support to prices. Brent crude futures were down 21 cents, or 0.3%, at $63.90 a barrel by 0022 GMT. They fell 12 cents on Monday. US West Texas Intermediate crude futures were down 20 cents, or 0.4%, at $57.46 a barrel. They rose 15 cents in the previous session. Oil prices are being pressured by ongoing worries about demand as the US-China trade war, heading into its second year, dampens prospects for global economic growth. Japan's core machinery orders fell by the most in eight months, data showed on Monday, in a sign the global trade tensions are taking a toll on corporate investment. Japanese government figures on Tuesday also showed that real wages in the country fell for a fifth straight month. "The prolonged trade war ... does not seem to be nearing a resolution, and it will keep being a negative factor for crude prices as it impacts global growth forecasts," said Alfonso Esparza, senior market analyst at OANDA in Toronto. Meanwhile, Goldman Sachs said growth in US shale production was likely to outpace that of global demand at least through 2020, limiting gains in oil prices despite output curbs led by the Organization of the Petroleum Exporting Countries. Prices are still susceptible to shocks from the lingering tensions in the Middle East, analyst and traders said. Iran on Monday threatened to restart deactivated centrifuges and step up its enrichment of uranium to 20% in a move that further threatens the 2015 nuclear agreement that Washington abandoned last year. Washington has imposed sanctions that eliminate benefits Iran was meant to receive in return for agreeing to curbs on its nuclear programme under the 2015 deal with world powers. The confrontation has brought the United States and Iran close to conflict, with US President Donald Trump calling off air strikes last month minutes before impact.

Oil prices drop as trade tensions stoke economy worries

With upscaling infrastructure investments to Rs 100 lakh crore over the next five years and measures to rejuvenate the rural and urban economy, the <a href="https://www.wionews.com/business-economy/budget-2019-here-is-what-favours-you-and-what-does-not-233308">Union Budget for 2019-20</a> sets a clear action plan for making India a five trillion dollar economy by 2025, according to leading industry chambers.

"Directionally the budget is good and it takes forward the plan that was laid out by the government during the interim Budget. There are several positives in the budget, and it provides a set of benefits for most segments of the society," said FICCI President Sandip Somany.

"We see a clear action plan for realising the vision of making India a five trillion dollar economy over the next few years with a focus on ease of living," he said appreciating the Budget's focus on infrastructure development. "We are also encouraged by the focus on promoting public-private partnership for modernisation and upgradation of the nation's railway infrastructure."

So many said the announcement to further provide Rs 70,000 crore for capital infusion into public sector banks along with measures to strengthen the governance processes within the banks should help in improving the credit flow to the industry.

CII President Vikram Kirloskar said the adherence to fiscal consolidation path while providing the necessary boost to consumption, investment and special emphasis on agriculture and rural sector steps in the right&nbsp;direction to take the economy to five trillion dollar mark.

"The measures are expected to debottleneck the economy and create a healthy eco-system for the revival of business sentiment. The Budget did well to bring all companies having turnover upto Rs 400 crore under the 25 per cent corporate tax rate ambit from the erstwhile limit of Rs 250 crore. This is a good beginning and as it is expected to provide a fillip to the corporate sector earnings which could be ploughed back in investments," he said.

Kirloskar said measures, like strengthening of logistics infrastructure and stepping up efforts in rural housing, are likely to provide a significant impetus to investment spending and consumption in the economy. Apart from boosting growth in the near to medium term, they will also help generate jobs in the economy.

Budget 2019-20: What Will Become Costlier &amp; Cheaper Now

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/budget-2019-20-what-will-become-costlier-cheaper-now-233474/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

ASSOCHAM President B K Goenka said <a href="https://www.wionews.com/india-news/nirmala-sitharaman-delivers-longest-ever-budget-speech-of-2-hours-17-mins-233293">Finance Minister Nirmala Sitharaman</a>'s maiden budget is a mega investment-oriented initiative with a strong focus on scaling up rural infrastructure and demand along with slew of tax simplification measures.

"The disinvestment target of Rs 1.05 lakh crore along with the commitment to disinvest Air India will be good efforts to enhance the fiscal stability with fiscal deficit being pegged lower at 3.7 per cent of GDP," he said adding that initiatives like e-assessment, inter-changeability of PAN and Aadhaar, digital payment will make a big difference to taxpayers.

The next phases of affordable housing, national highway projects should also be growth drivers, said Goenka. "The focus on Make in India is visible as also emphasis on sustainable development by measures like electric vehicles and renewable energy. Boost to high-technology manufacturing like semi-conductor and commercialisation of space technologies are innovative measures."

With upscaling infrastructure investments to Rs 100 lakh crore over the next five years and measures to rejuvenate the rural and urban economy, the Union Budget for 2019-20 sets a clear action plan for making India a five trillion dollar economy by 2025, according to leading industry chambers.

With upscaling infrastructure investments to Rs 100 lakh crore over the next five years and measures to rejuvenate the rural and urban economy, the Union Budget for 2019-20 sets a clear action plan for making India a five trillion dollar economy by 2025, according to leading industry chambers. "Directionally the budget is good and it takes forward the plan that was laid out by the government during the interim Budget. There are several positives in the budget, and it provides a set of benefits for most segments of the society," said FICCI President Sandip Somany. "We see a clear action plan for realising the vision of making India a five trillion dollar economy over the next few years with a focus on ease of living," he said appreciating the Budget's focus on infrastructure development. "We are also encouraged by the focus on promoting public-private partnership for modernisation and upgradation of the nation's railway infrastructure." So many said the announcement to further provide Rs 70,000 crore for capital infusion into public sector banks along with measures to strengthen the governance processes within the banks should help in improving the credit flow to the industry. CII President Vikram Kirloskar said the adherence to fiscal consolidation path while providing the necessary boost to consumption, investment and special emphasis on agriculture and rural sector steps in the right direction to take the economy to five trillion dollar mark. "The measures are expected to debottleneck the economy and create a healthy eco-system for the revival of business sentiment. The Budget did well to bring all companies having turnover upto Rs 400 crore under the 25 per cent corporate tax rate ambit from the erstwhile limit of Rs 250 crore. This is a good beginning and as it is expected to provide a fillip to the corporate sector earnings which could be ploughed back in investments," he said. Kirloskar said measures, like strengthening of logistics infrastructure and stepping up efforts in rural housing, are likely to provide a significant impetus to investment spending and consumption in the economy. Apart from boosting growth in the near to medium term, they will also help generate jobs in the economy. Budget 2019-20: What Will Become Costlier & Cheaper Now ASSOCHAM President B K Goenka said Finance Minister Nirmala Sitharaman's maiden budget is a mega investment-oriented initiative with a strong focus on scaling up rural infrastructure and demand along with slew of tax simplification measures. "The disinvestment target of Rs 1.05 lakh crore along with the commitment to disinvest Air India will be good efforts to enhance the fiscal stability with fiscal deficit being pegged lower at 3.7 per cent of GDP," he said adding that initiatives like e-assessment, inter-changeability of PAN and Aadhaar, digital payment will make a big difference to taxpayers. The next phases of affordable housing, national highway projects should also be growth drivers, said Goenka. "The focus on Make in India is visible as also emphasis on sustainable development by measures like electric vehicles and renewable energy. Boost to high-technology manufacturing like semi-conductor and commercialisation of space technologies are innovative measures."

Budget sets clear action plan for making India $5 trillion economy: FICCI, CII

The Economic Survey 2018-19 was presented in the Parliament, as is the practice, a day before the Union Budget.&nbsp;

The survey points out that amid weak global growth during the last five years, India took a few giant strides forward becoming the sixth largest economy as well as the fastest growing major economy in the world.&nbsp;

The average inflation was less than half the level of the preceding five years, lowest in post-independence history.&nbsp;

According to the survey, the Indian economy is projected to grow at 7 per cent&nbsp;in 2019-20, up 0.2 per cent&nbsp;from 2018-19, on the back of political stability, which is likely to push up economic activity in the country (activate the animal spirits).&nbsp;

To achieve the Prime Minister’s dream of India becoming a $5 trillion economy by 2025, India needs to attain and sustain a real GDP growth of 8% per annum. “This can be achieved by a ‘virtuous cycle’ of savings, investment and exports catalysed and supported by a favourable demographic phase,” says the survey.

Low oil prices compared to 2018-19 is expected to push the consumption, while low real interest rates are expected to provide a boost to investment; the two key levers of the Indian economy.&nbsp;

Investment is the ‘key driver’ of the Indian economy, accounting for 32 per cent&nbsp;of the GDP. The survey points out that the investment rate, which was declining from 2011-12, seems to have bottomed out. Fixed investment growth has increased from 8.3 per cent&nbsp;in 2016-17 to 9.3 per cent&nbsp;in 2017-18 and 10.0 per cent&nbsp;in 2018-19.&nbsp;

Investment is expected to pick up further on the back of higher credit growth, facilitated by lower interest rates and improved demand facilitated by a strong mandate, clearing all theories of political uncertainty.

Higher investments are likely to foster job creation; unemployment being a major issue facing the economy at a 45-year-high.&nbsp;

As per a CRISIL report, system-wide NPAs have declined to 9.3 per cent&nbsp;as of March 2019 after tripling to 11.5 per cent&nbsp;in the four fiscals till March 2018.&nbsp;

The continuing resolution of stressed assets in the banking sector highlighting the success story of the Insolvency and Bankruptcy Code is expected to give a fillip to the capex cycle, as per the Economic Survey.

India, unlike China, is a consumption-led rather than export dependent economy. India witnessed a deceleration in private final consumption in Q3 and Q4 of 2018-19, thus resulting in a slowdown in GDP growth.

The survey points out that this could have been due to low farm incomes in rural areas arising from low food prices and also due to the stress in non-banking financial companies (NBFCs), which affected its lending.

Private final consumption expenditure accounts for 60 per cent&nbsp;of India’s GDP with its growth rate mostly being higher than the overall GDP growth rate.&nbsp;

Consumption is likely to pick up with an increase in rural wages, higher food prices (higher MSPs) and income support scheme of Rs 6,000 per year to farmers. All these measures are likely to boost rural demand.&nbsp;

However, a weak monsoon and spill over impact of stress in the NBFC sector, present downside risks to consumption, says the survey.

June 2019, the first month of the monsoon season, recorded a 33% deficient rainfall — the worst in the last five years. Although IMD expects a near normal rainfall, region wise imbalances are expected to arise impacting crop production and agriculture growth.&nbsp;

The liquidity crunch faced by the NBFC sector due to IL&amp;FS default, loss of investor confidence and recent default by DHFL, shows that the sector is under stress.&nbsp;

Non-performing loans are rising, currently at 6.1%, while the credit disbursements fell by 31 per cent&nbsp;in Q4 2018-19. All this is likely to lead to lower credit offtake from NBFCs, which may dampen growth in consumption spending, the survey stresses. &nbsp;

As per the Economic Survey, the growth rate of the world output is projected to fall further to 3.3 per cent&nbsp;in 2019 (-0.3 per cent). The US and China trade war, the outcome of Brexit and downside risk to China’s growth, all point towards weak global cues. In this light, export growth could remain weak, which in turn could impact India’s GDP growth. &nbsp;The survey lays out a strategic blueprint for fructifying #Economy@5trillion. Now over to the Budget today!

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-don-t-underestimate-global-economic-impact-on-india-s-gdp-2768191">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

The Economic Survey 2018-19 was presented in the Parliament, as is the practice, a day before the Union Budget. The survey points out that amid weak global growth during the last five years, India took a few giant strides forward becoming the sixth largest economy as well as the fastest growing major economy in the world.

The Economic Survey 2018-19 was presented in the Parliament, as is the practice, a day before the Union Budget. The survey points out that amid weak global growth during the last five years, India took a few giant strides forward becoming the sixth largest economy as well as the fastest growing major economy in the world. The average inflation was less than half the level of the preceding five years, lowest in post-independence history. According to the survey, the Indian economy is projected to grow at 7 per cent in 2019-20, up 0.2 per cent from 2018-19, on the back of political stability, which is likely to push up economic activity in the country (activate the animal spirits). To achieve the Prime Minister’s dream of India becoming a $5 trillion economy by 2025, India needs to attain and sustain a real GDP growth of 8% per annum. “This can be achieved by a ‘virtuous cycle’ of savings, investment and exports catalysed and supported by a favourable demographic phase,” says the survey. Low oil prices compared to 2018-19 is expected to push the consumption, while low real interest rates are expected to provide a boost to investment; the two key levers of the Indian economy. Investment is the ‘key driver’ of the Indian economy, accounting for 32 per cent of the GDP. The survey points out that the investment rate, which was declining from 2011-12, seems to have bottomed out. Fixed investment growth has increased from 8.3 per cent in 2016-17 to 9.3 per cent in 2017-18 and 10.0 per cent in 2018-19. Investment is expected to pick up further on the back of higher credit growth, facilitated by lower interest rates and improved demand facilitated by a strong mandate, clearing all theories of political uncertainty. Higher investments are likely to foster job creation; unemployment being a major issue facing the economy at a 45-year-high. As per a CRISIL report, system-wide NPAs have declined to 9.3 per cent as of March 2019 after tripling to 11.5 per cent in the four fiscals till March 2018. The continuing resolution of stressed assets in the banking sector highlighting the success story of the Insolvency and Bankruptcy Code is expected to give a fillip to the capex cycle, as per the Economic Survey. India, unlike China, is a consumption-led rather than export dependent economy. India witnessed a deceleration in private final consumption in Q3 and Q4 of 2018-19, thus resulting in a slowdown in GDP growth. The survey points out that this could have been due to low farm incomes in rural areas arising from low food prices and also due to the stress in non-banking financial companies (NBFCs), which affected its lending. Private final consumption expenditure accounts for 60 per cent of India’s GDP with its growth rate mostly being higher than the overall GDP growth rate. Consumption is likely to pick up with an increase in rural wages, higher food prices (higher MSPs) and income support scheme of Rs 6,000 per year to farmers. All these measures are likely to boost rural demand. However, a weak monsoon and spill over impact of stress in the NBFC sector, present downside risks to consumption, says the survey. June 2019, the first month of the monsoon season, recorded a 33% deficient rainfall — the worst in the last five years. Although IMD expects a near normal rainfall, region wise imbalances are expected to arise impacting crop production and agriculture growth. The liquidity crunch faced by the NBFC sector due to IL&FS default, loss of investor confidence and recent default by DHFL, shows that the sector is under stress. Non-performing loans are rising, currently at 6.1%, while the credit disbursements fell by 31 per cent in Q4 2018-19. All this is likely to lead to lower credit offtake from NBFCs, which may dampen growth in consumption spending, the survey stresses. As per the Economic Survey, the growth rate of the world output is projected to fall further to 3.3 per cent in 2019 (-0.3 per cent). The US and China trade war, the outcome of Brexit and downside risk to China’s growth, all point towards weak global cues. In this light, export growth could remain weak, which in turn could impact India’s GDP growth. The survey lays out a strategic blueprint for fructifying #Economy@5trillion. Now over to the Budget today! (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Don’t underestimate global economic impact on India’s GDP

<a href="https://www.wionews.com/business-economy/budget-2019-finance-minister-nirmala-sitharaman-to-present-maiden-budget-today-at-11-am-233079">Union Finance Minister Nirmala Sitharaman</a> will be unveiling Modi-government 2.0's first Union Budget on Friday. As the finance minister, this will be Sitharaman's maiden budget.&nbsp;

Here's taking a quick look at what all is likely to announced as the finance minister presents the government's first full-year budget today.&nbsp;

Relief to tax payers

Experts suggest Sitharaman is likely to pronounce relief to the common tax payers today by raising the personal income tax threshold for certain categories.

In the Interim Budget, the government had proposed a rebate on all payable taxes if an individual's taxable income is up to Rs 5 lakh per annum. But it kept the basic exemption levels unchanged.&nbsp;

Sources said that the Budget 2019-20 will take the sops announced in the Interim Budget further by raising the basic tax exemption limit for an individual income tax payee to Rs 3 lakh from Rs 2.50 lakh at present to cover for the inflationary impact over the years.

Watch:&nbsp;Key Expectations From Indian Budget 2019-20

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/budget-2019-key-expectations-from-indian-budget-2019-20-233113/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Push to agriculture, infrastructure, healthcare spending

It is also anticipated that spending on agriculture, healthcare, social sectors and infrastructure would get a push.&nbsp;

The budget is likely to feature schemes for ushering in a "blue revolution". The BJP's promise of allocation of Rs 10,000 crore for providing infrastructure like storage and marketing for small fishermen is likely to be fulfilled.&nbsp;

Pradhan Mantri Fasal Biima Yojana (Prime Minister's Crop Insurance) scheme will be improved. Proposals with a focus on micro-irrigation and new agriculture warehouses along national highways are also on the cards, said sources.

Slew of measures

It is widely expected that the budget will have a slew of measures which will support the economic growth both in the short-term and the long-term. It may be noted that the economic expansion during last fiscal has slowed down to a five-year low of 6.8 per cent, with growth for the running fiscal (2019-20) pegged down substantially by the Reserve Bank of India.

New industrial policy&nbsp;

Sitharaman is expected to make public the new industrial policy today which primarily centres around the "Make in India" theme and was first envisaged in Modi's first term.&nbsp;

Disinvestment, RBI dividend

Today's budget may feature the government's plan to raise the funds required to boost the economy through welfare measures. The disinvestment target is likely to be raised whereas the Reserve Bank of India may be nudged for a higher dividend. The 5G spectrum auction, due in October, is also likely to find a mention today.&nbsp;

Air India woes

As per reports, cash-strapped, privatisation-bound Air India may not get financial support from the budget today. &nbsp;

Sitharaman, on Thursday, tabled the <a href="https://www.wionews.com/business-economy/india-needs-to-sustain-8-gdp-growth-to-become-5-trillion-economy-in-2025-economic-survey-232945">Economic Survey</a>&nbsp;in Rajya Sabha which said India needed to sustain a GDP growth rate of 8 per cent in order to become a $5 trillion economy by 2025.

The economic survey has predicted seven per cent Gross Domestic Product (GDP) growth in FY20 on stable macro-economic conditions.

The survey said oil prices were expected to decline in 2019-20.

According to the survey, the general fiscal deficit is seen at 5.8 per cent in FY19 against 6.4 per cent in FY18. "The government stood by the fiscal consolidation path," the report said.

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Union Finance Minister Nirmala Sitharaman will be unveiling Modi-government 2.0's first Union Budget on Friday. As the finance minister, this will be Sitharaman's maiden budget.

Union Finance Minister Nirmala Sitharaman will be unveiling Modi-government 2.0's first Union Budget on Friday. As the finance minister, this will be Sitharaman's maiden budget. Here's taking a quick look at what all is likely to announced as the finance minister presents the government's first full-year budget today. Relief to tax payers Experts suggest Sitharaman is likely to pronounce relief to the common tax payers today by raising the personal income tax threshold for certain categories. In the Interim Budget, the government had proposed a rebate on all payable taxes if an individual's taxable income is up to Rs 5 lakh per annum. But it kept the basic exemption levels unchanged. Sources said that the Budget 2019-20 will take the sops announced in the Interim Budget further by raising the basic tax exemption limit for an individual income tax payee to Rs 3 lakh from Rs 2.50 lakh at present to cover for the inflationary impact over the years. Watch: Key Expectations From Indian Budget 2019-20 Push to agriculture, infrastructure, healthcare spending It is also anticipated that spending on agriculture, healthcare, social sectors and infrastructure would get a push. The budget is likely to feature schemes for ushering in a "blue revolution". The BJP's promise of allocation of Rs 10,000 crore for providing infrastructure like storage and marketing for small fishermen is likely to be fulfilled. Pradhan Mantri Fasal Biima Yojana (Prime Minister's Crop Insurance) scheme will be improved. Proposals with a focus on micro-irrigation and new agriculture warehouses along national highways are also on the cards, said sources. Slew of measures It is widely expected that the budget will have a slew of measures which will support the economic growth both in the short-term and the long-term. It may be noted that the economic expansion during last fiscal has slowed down to a five-year low of 6.8 per cent, with growth for the running fiscal (2019-20) pegged down substantially by the Reserve Bank of India. New industrial policy Sitharaman is expected to make public the new industrial policy today which primarily centres around the "Make in India" theme and was first envisaged in Modi's first term. Disinvestment, RBI dividend Today's budget may feature the government's plan to raise the funds required to boost the economy through welfare measures. The disinvestment target is likely to be raised whereas the Reserve Bank of India may be nudged for a higher dividend. The 5G spectrum auction, due in October, is also likely to find a mention today. Air India woes As per reports, cash-strapped, privatisation-bound Air India may not get financial support from the budget today. Sitharaman, on Thursday, tabled the Economic Survey in Rajya Sabha which said India needed to sustain a GDP growth rate of 8 per cent in order to become a $5 trillion economy by 2025. The economic survey has predicted seven per cent Gross Domestic Product (GDP) growth in FY20 on stable macro-economic conditions. The survey said oil prices were expected to decline in 2019-20. According to the survey, the general fiscal deficit is seen at 5.8 per cent in FY19 against 6.4 per cent in FY18. "The government stood by the fiscal consolidation path," the report said.

Budget 2019: Slew of measures to boost economy, relief to tax payers likely in Sitharaman's maiden budget today

In what comes as a relief to <a href="https://www.wionews.com/south-asia/pakistan-signs-375-million-syndicated-loan-with-uae-banks-231580">cash-strapped Pakistan</a>, Qatar has deposited the first tranche of US $500 million in the State Bank of <a href="https://www.wionews.com/south-asia/those-manufactured-in-the-nursery-of-military-dictatorship-calling-me-selected-imran-khan-231597">Pakistan</a>.

"US $500 million received from Qatar," the State Bank of Pakistan (SBP) confirmed to The Express Tribune on Saturday Doha had on June 24 announced that it has decided to invest US $3 billion in Pakistan which is grappling to overcome a severe financial crisis.

This was announced on Monday after a two-day visit of Qatar`s Emir Sheikh Tamim Bin Hamad Al Thani to Pakistan as the Imran Khan-led government continues to battle a ballooning balance-of-payment crisis.

"Upon the directives of HH the Amir Sheikh Tamim bin Hamad Al-Thani, HE Deputy Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman Al-Thani announced new investments in the form of deposits and direct investments in the Islamic Republic of Pakistan worth a total of US $3 billion," the Qatar News Agency said.

With this new investment package, the size of the Qatari-Pakistani economic partnership will amount to US $9 billion, it said.

Taking to Twitter, Abdul Hafeez Sheikh, the Pakistan Prime Minister`s financial adviser, said, "Want to thank the Emir of Qatar HRH Sheikh Tamim Bin Hamad Al Thani for announcing US $3 Billion in #deposits and direct #investments for #Pakistan and for #Qatar`s affirmation to further develop relations between the two countries."

Qatar is the fourth country to provide a bailout package to Pakistan, after China, the UAE and Saudi Arabia.

China has given to Pakistan US $4.6 billion in the shape of deposits and commercial loans while Saudi Arabia has announced a bailout package worth US $3 billion in addition to US $3.2 billion oil facility on deferred payments.

The UAE has provided a bailout package of US $2 billion to Pakistan.

Last month, Islamabad had reached an agreement with the International Monetary Fund (IMF) for a bailout package of US $6 billion.&nbsp;

The deal is expected to be approved by the IMF Executive Board on July 3.

Besides the assistance by the global finance body, Pakistan will receive additional funds worth nearly US $2-3 billion from institutions such as the Asian Development Bank and World Bank.&nbsp;

In what comes as a relief to cash-strapped Pakistan, Qatar has deposited the first tranche of US $500 million in the State Bank of Pakistan. "US $500 million received from Qatar," the State Bank of Pakistan (SBP) confirmed to The Express Tribune on Saturday Doha had on June 24 announced that it has decided to invest US $3 billion in Pakistan which is grappling to overcome a severe financial crisis.

In what comes as a relief to cash-strapped Pakistan, Qatar has deposited the first tranche of US $500 million in the State Bank of Pakistan. "US $500 million received from Qatar," the State Bank of Pakistan (SBP) confirmed to The Express Tribune on Saturday Doha had on June 24 announced that it has decided to invest US $3 billion in Pakistan which is grappling to overcome a severe financial crisis. This was announced on Monday after a two-day visit of Qatar`s Emir Sheikh Tamim Bin Hamad Al Thani to Pakistan as the Imran Khan-led government continues to battle a ballooning balance-of-payment crisis. "Upon the directives of HH the Amir Sheikh Tamim bin Hamad Al-Thani, HE Deputy Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman Al-Thani announced new investments in the form of deposits and direct investments in the Islamic Republic of Pakistan worth a total of US $3 billion," the Qatar News Agency said. With this new investment package, the size of the Qatari-Pakistani economic partnership will amount to US $9 billion, it said. Taking to Twitter, Abdul Hafeez Sheikh, the Pakistan Prime Minister`s financial adviser, said, "Want to thank the Emir of Qatar HRH Sheikh Tamim Bin Hamad Al Thani for announcing US $3 Billion in #deposits and direct #investments for #Pakistan and for #Qatar`s affirmation to further develop relations between the two countries." Qatar is the fourth country to provide a bailout package to Pakistan, after China, the UAE and Saudi Arabia. China has given to Pakistan US $4.6 billion in the shape of deposits and commercial loans while Saudi Arabia has announced a bailout package worth US $3 billion in addition to US $3.2 billion oil facility on deferred payments. The UAE has provided a bailout package of US $2 billion to Pakistan. Last month, Islamabad had reached an agreement with the International Monetary Fund (IMF) for a bailout package of US $6 billion. The deal is expected to be approved by the IMF Executive Board on July 3. Besides the assistance by the global finance body, Pakistan will receive additional funds worth nearly US $2-3 billion from institutions such as the Asian Development Bank and World Bank.

Cash-strapped Pakistan receives $500 million from Qatar

Monsoon has progressed more slowly than usual after hitting Kerala nearly a week late. Monsoon rains have been 44 per cent&nbsp;lower-than-average so far in June, delaying the sowing of summer-sown crops and raising concerns that parts of the country could face a <a href="https://www.wionews.com/india-news/tamil-nadu-faces-severe-water-crisis-chief-minister-k-palaniswami-says-not-a-big-issue-228613">worsening drought</a>.

This shortfall could have a major impact on consumer demand, the overall economy and financial markets.

The India Meteorological Department (IMD) has forecast average rainfall in 2019, while the country's only private forecaster Skymet has predicted below-normal rainfall.

What are the monsoon types?

A normal, or average, monsoon means rainfall between 96 per cent and 104 per cent of a 50-year average of 89 cm in total during the four-month monsoon season from June to September, according to the IMD's classification.

Rainfall below 90 per cent of the average is classified as deficient, the same as a drought. In 2018, India received 9 per cent lower rainfall than normal, although in some regions the deficit was as high as 37 per cent.

Rainfall above 110 per cent of the average would mean an excessive monsoon, which could cause flooding and reduce the yields of certain crops.

Watch: Monsoon delayed, heatwave persists as temperature hover around 50°C

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/monsoon-delayed-heatwave-persists-as-temperature-hover-around-50degc-226244/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The monsoon season starts with rains on the southern Kerala coast around June 1, and usually covers the country by the middle of July.

What is the progress this year?

The monsoon arrived in Kerala on June 8 versus the usual June 1. However, Cyclone Vayu developed in the Arabian Sea and that drew moisture from the monsoon and weakened its progress. The monsoon typically covers half of India by mid-June but this year has covered just a quarter of the country.

Does the delay mean lower rainfall?

There are instances when the monsoon delivered average or above average rainfall even after arriving late or progressing slowly.

In 2016, the monsoon landed in Kerala on June 8 but covered the entire country by July 13 and delivered average rainfall. Other times, rainfall deficits in June were fully offset by a week of raining in July.

The monsoon delivers about 70 per cent of India's annual rainfall and determines the yield of rice, wheat, sugarcane and oilseeds, such as soybeans. Farming makes up about 15 per cent of India's $2.5 trillion economy but employs more than half of its 1.3 billion people.

Rising farm output from a decent monsoon boosts demand for consumer goods in rural regions.

A stronger economic outlook tends to lift the stock prices of companies focused on selling products in rural areas.

India is self-sufficient in rice and wheat, but a drought would increases imports of pulses and edible oils, such as palm oil, soyoil and sunflower oil. Monsoon rains replenish reservoirs and groundwater, allowing better irrigation and more hydropower output. Higher rainfall can trim demand for subsidised diesel, which is used to pump wells for irrigation.

Why is the monsoon key for Prime Minister Narendra Modi?

PM Modi has promised to double farmers' income over five years and promised to boost the economy. Makers of consumer products are reporting poor rural demand. Depleting reservoirs have forced cities including Chennai, Mumbai and Hyderabad to cut water supplies.

How does the monsoon affect prices and RBI policy?

Food makes up nearly half of India's consumer price index, which the Reserve Bank of India monitors when deciding on monetary policy, including interest rates. Bumper farm output would keep food prices under control.

The government has paid farmers during past droughts, straining the fiscal deficit. A good monsoon will limit that kind of government spending. A drought would raise vegetable and pulse prices, requiring increased spending on welfare schemes.

How reliable are monsoon forecasts?

The IMD issues its first forecast typically in mid-April.

On average, its forecast has been accurate only once every five years over the past two decades, even after taking into account an error band of plus or minus 5 percentage points.

The IMD's 2017 forecast was the most accurate since 2008. In 2018, it forecast 97 per cent rainfall but India received only 91 per cent. Even during normal monsoon years, some parts of India face drought while others flood.

In 2018, Kerala had it worst flooding in about 100 years even as the western state of Maharashtra had a drought. The IMD releases its second monsoon forecast in the last week of May or first week of June with an update in the middle of the monsoon season.

Monsoon has progressed more slowly than usual after hitting Kerala nearly a week late. Monsoon rains have been 44 per cent lower-than-average so far in June, delaying the sowing of summer-sown crops and raising concerns that parts of the country could face a worsening drought.

Monsoon has progressed more slowly than usual after hitting Kerala nearly a week late. Monsoon rains have been 44 per cent lower-than-average so far in June, delaying the sowing of summer-sown crops and raising concerns that parts of the country could face a worsening drought. This shortfall could have a major impact on consumer demand, the overall economy and financial markets. The India Meteorological Department (IMD) has forecast average rainfall in 2019, while the country's only private forecaster Skymet has predicted below-normal rainfall. What are the monsoon types? A normal, or average, monsoon means rainfall between 96 per cent and 104 per cent of a 50-year average of 89 cm in total during the four-month monsoon season from June to September, according to the IMD's classification. Rainfall below 90 per cent of the average is classified as deficient, the same as a drought. In 2018, India received 9 per cent lower rainfall than normal, although in some regions the deficit was as high as 37 per cent. Rainfall above 110 per cent of the average would mean an excessive monsoon, which could cause flooding and reduce the yields of certain crops. Watch: Monsoon delayed, heatwave persists as temperature hover around 50°C The monsoon season starts with rains on the southern Kerala coast around June 1, and usually covers the country by the middle of July. What is the progress this year? The monsoon arrived in Kerala on June 8 versus the usual June 1. However, Cyclone Vayu developed in the Arabian Sea and that drew moisture from the monsoon and weakened its progress. The monsoon typically covers half of India by mid-June but this year has covered just a quarter of the country. Does the delay mean lower rainfall? There are instances when the monsoon delivered average or above average rainfall even after arriving late or progressing slowly. In 2016, the monsoon landed in Kerala on June 8 but covered the entire country by July 13 and delivered average rainfall. Other times, rainfall deficits in June were fully offset by a week of raining in July. The monsoon delivers about 70 per cent of India's annual rainfall and determines the yield of rice, wheat, sugarcane and oilseeds, such as soybeans. Farming makes up about 15 per cent of India's $2.5 trillion economy but employs more than half of its 1.3 billion people. Rising farm output from a decent monsoon boosts demand for consumer goods in rural regions. A stronger economic outlook tends to lift the stock prices of companies focused on selling products in rural areas. India is self-sufficient in rice and wheat, but a drought would increases imports of pulses and edible oils, such as palm oil, soyoil and sunflower oil. Monsoon rains replenish reservoirs and groundwater, allowing better irrigation and more hydropower output. Higher rainfall can trim demand for subsidised diesel, which is used to pump wells for irrigation. Why is the monsoon key for Prime Minister Narendra Modi? PM Modi has promised to double farmers' income over five years and promised to boost the economy. Makers of consumer products are reporting poor rural demand. Depleting reservoirs have forced cities including Chennai, Mumbai and Hyderabad to cut water supplies. How does the monsoon affect prices and RBI policy? Food makes up nearly half of India's consumer price index, which the Reserve Bank of India monitors when deciding on monetary policy, including interest rates. Bumper farm output would keep food prices under control. The government has paid farmers during past droughts, straining the fiscal deficit. A good monsoon will limit that kind of government spending. A drought would raise vegetable and pulse prices, requiring increased spending on welfare schemes. How reliable are monsoon forecasts? The IMD issues its first forecast typically in mid-April. On average, its forecast has been accurate only once every five years over the past two decades, even after taking into account an error band of plus or minus 5 percentage points. The IMD's 2017 forecast was the most accurate since 2008. In 2018, it forecast 97 per cent rainfall but India received only 91 per cent. Even during normal monsoon years, some parts of India face drought while others flood. In 2018, Kerala had it worst flooding in about 100 years even as the western state of Maharashtra had a drought. The IMD releases its second monsoon forecast in the last week of May or first week of June with an update in the middle of the monsoon season.

In India, all eyes on a monsoon that is critical for the economy

Infrastructure development, including the construction of roads, bridges, ports, power plants and water supply, are key drivers of economic growth. It facilitates developing countries to boost their manufacturing, services as well as trade.

The fast-paced infrastructure development in India has not only helped the country in becoming one of the fastest growing economies of the world, but also aided in bringing in substantial investment.&nbsp;

Smart Cities Mission has given a boost to infrastructure development. With infrastructure geared towards Smart Cities, the focus is on sustainable infrastructure, which also becomes the need of the hour considering the fact that the planet is suffering from eco-anxiety — due to climate change and diminishing natural resources.

Sustainable infrastructure not just protects the environment, but also adds long-term value to the facilities. It enhances the quality of life for citizens of the country.

Sustainable growth helps in protecting vital natural resources along with promoting efficient use of financial resources.

Pollution is one of the major problems dogging India, whose air quality in India is horrendously bad right now. The problem became so intense that the government had to stop construction at almost all sites.

An increasing number of vehicles, along with industrialisation and a decreasing number of trees, have added to carbon emission.&nbsp;

Sustainable infrastructure can play a role in reducing energy consumption, which helps in minimising carbon dioxide emission. The usage of renewable energy sources directly helps in improving air quality.

Sustainable infrastructure also helps in reducing solid waste. Since the focus has now shifted to solid waste management, companies manufacturing construction materials are coming up with renewable building materials which are easy to recycle.&nbsp;

Various solid waste reduction practices such as construction byproduct management, recyclable management, recycled material usage and waste mitigation have been incorporated. &nbsp;

Owing to rampant exploitation of natural resources, it is high time that we switch to sustainable infrastructure development. This will help reduce dependence on natural resources.&nbsp;

Through building re-purposing, sustainable infrastructure projects will help save natural resources.&nbsp;

Sustainable projects also help to reduce soil erosion as well as water runoff. They assist in preserving indigenous wildlife and open land.

While developing a sustainable infrastructure project, the focus is on less energy consumption. Although the cost of sustainable engineering is higher as compared to traditional building methods, the developer can recover the initial cost due to reduced utility and maintenance expenses.

Apart from bringing down energy consumption, there is a reduction in water consumption too owing to the fact that civil engineers practising sustainable infrastructure design also incorporate water saving- technologies. These projects have water-free urinals — no flush toilets and low flow shower heads.

It also comes with the benefit of improved community health. With improved air quality, reduction in carbon emission, less energy consumption and usage of renewable energy sources, sustainable infrastructure has tremendous health benefits.&nbsp;

Sustainable infrastructure also reduces the risk of damages through unforeseen natural disasters.&nbsp;

Apart from this, the developer of a sustainable project might get insurance discounts through preventive disaster measures, which further offsets emergency equipment expenses.&nbsp;

Structural life spans of the project that are designed keeping in mind sustainability also goes up. This helps developers in cutting down on construction costs. It is safe to say that any sustainable project should remain safe and functional for 200 to 300 years.

Minimalist designs allow property owners to add features as and when needed. The design of sustainable projects is such that it facilitates future additions. The floor plans of sustainable projects ensure that space lends itself to multi-purpose utility.&nbsp;

Sustainable projects also include framework, which includes additional floor levels, as well as accessible wiring conduits that facilitate future improvements.

Apart from providing a better place to live, sustainable infrastructure development also adds to employment prospects. Employment opportunities are created at every step. Job opportunities are aplenty — right from construction to its maintenance. Apart from being the direct source of employment for local labour, it is also a source of income generation for small businessmen who supply materials for construction.

Sustainable infrastructure attracts investment, which ropes in companies providing employment opportunities to local labour and help in controlling rampant inter-state migration.&nbsp; 
 
(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-sustainable-infrastructure-the-way-ahead-for-india-2760490">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp; 
&nbsp;

Infrastructure development, including the construction of roads, bridges, ports, power plants and water supply, are key drivers of economic growth. It facilitates developing countries to boost their manufacturing, services as well as trade.

Infrastructure development, including the construction of roads, bridges, ports, power plants and water supply, are key drivers of economic growth. It facilitates developing countries to boost their manufacturing, services as well as trade. The fast-paced infrastructure development in India has not only helped the country in becoming one of the fastest growing economies of the world, but also aided in bringing in substantial investment. Smart Cities Mission has given a boost to infrastructure development. With infrastructure geared towards Smart Cities, the focus is on sustainable infrastructure, which also becomes the need of the hour considering the fact that the planet is suffering from eco-anxiety — due to climate change and diminishing natural resources. Sustainable infrastructure not just protects the environment, but also adds long-term value to the facilities. It enhances the quality of life for citizens of the country. Sustainable growth helps in protecting vital natural resources along with promoting efficient use of financial resources. Pollution is one of the major problems dogging India, whose air quality in India is horrendously bad right now. The problem became so intense that the government had to stop construction at almost all sites. An increasing number of vehicles, along with industrialisation and a decreasing number of trees, have added to carbon emission. Sustainable infrastructure can play a role in reducing energy consumption, which helps in minimising carbon dioxide emission. The usage of renewable energy sources directly helps in improving air quality. Sustainable infrastructure also helps in reducing solid waste. Since the focus has now shifted to solid waste management, companies manufacturing construction materials are coming up with renewable building materials which are easy to recycle. Various solid waste reduction practices such as construction byproduct management, recyclable management, recycled material usage and waste mitigation have been incorporated. Owing to rampant exploitation of natural resources, it is high time that we switch to sustainable infrastructure development. This will help reduce dependence on natural resources. Through building re-purposing, sustainable infrastructure projects will help save natural resources. Sustainable projects also help to reduce soil erosion as well as water runoff. They assist in preserving indigenous wildlife and open land. While developing a sustainable infrastructure project, the focus is on less energy consumption. Although the cost of sustainable engineering is higher as compared to traditional building methods, the developer can recover the initial cost due to reduced utility and maintenance expenses. Apart from bringing down energy consumption, there is a reduction in water consumption too owing to the fact that civil engineers practising sustainable infrastructure design also incorporate water saving- technologies. These projects have water-free urinals — no flush toilets and low flow shower heads. It also comes with the benefit of improved community health. With improved air quality, reduction in carbon emission, less energy consumption and usage of renewable energy sources, sustainable infrastructure has tremendous health benefits. Sustainable infrastructure also reduces the risk of damages through unforeseen natural disasters. Apart from this, the developer of a sustainable project might get insurance discounts through preventive disaster measures, which further offsets emergency equipment expenses. Structural life spans of the project that are designed keeping in mind sustainability also goes up. This helps developers in cutting down on construction costs. It is safe to say that any sustainable project should remain safe and functional for 200 to 300 years. Minimalist designs allow property owners to add features as and when needed. The design of sustainable projects is such that it facilitates future additions. The floor plans of sustainable projects ensure that space lends itself to multi-purpose utility. Sustainable projects also include framework, which includes additional floor levels, as well as accessible wiring conduits that facilitate future improvements. Apart from providing a better place to live, sustainable infrastructure development also adds to employment prospects. Employment opportunities are created at every step. Job opportunities are aplenty — right from construction to its maintenance. Apart from being the direct source of employment for local labour, it is also a source of income generation for small businessmen who supply materials for construction. Sustainable infrastructure attracts investment, which ropes in companies providing employment opportunities to local labour and help in controlling rampant inter-state migration. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Sustainable infrastructure the way ahead for India

With the National Democratic Alliance (NDA) romping home easily for another five-year tenure, the first test is barely a few weeks away.&nbsp;

Having steered choppy economic waters during its first term, the none-too-rosy state of the economy was seldom a binding constraint since security issues in the aftermath of Pulmawa, trumped bread-and-butter issues, including agrarian distress and lack of employment.

The scattered opposition parties failed to galvanise themselves on any major economic issue, other than beating about the bush on the alleged corruption in the purchase of advanced aircraft, Rafale.&nbsp;

Now that Prime Minister Narendra Modi has proved beyond a pale of doubt that he is a past-master in outmanoeuvring opponents at their own game, he will now have to devote time and energy in reviving the domestic economy and stoking demand so that the core sectors get kick-started to realise their optimal potential. No sooner has the new Finance Minister Nirmala Sitharaman assumed office, problems have come knocking at her door.

With the Central Statistics Office’s (CSO) revealing that the economy lost further momentum to grow just by 5.8 per cent in the fourth quarter (Jan-Mar), the country’s gross domestic product (GDP) growth for fiscal 2018-19 at 6.8 per cent has understandably undershot even sanguine forecasts.&nbsp;

To boot, the unaudited/interim accounts of the central government for 2018-19, also released alongside, presented the obverse and adverse side of the economic slowdown.&nbsp;

Thus, the Centre compassed Rs 16,66,055 crore (91.40 per cent of corresponding revised estimate 2018-19 of total receipts) during 2018-19, comprising Rs 13,16,951 crore as tax revenue (net to Centre), Rs 2,46,219 crore of non-tax revenue and Rs 1,02,885 crore as non-debt capital receipts, which consists recovery of loans (Rs 17,840 crore) and disinvestment of public sector undertakings at Rs 85,045 crore.

Against the receipts, the total expenditure incurred by the Centre was Rs 23,11,422 crore (94.07 per cent of the corresponding revised estimate of 2018-19) out of which Rs 20,08,463 crore was on revenue account and Rs 3,02,959 crore on capital account.&nbsp;

What is particularly noteworthy is that out of the total revenue expenditure, as much as Rs 5,82,675 crore was on account of interest payments of past debt and Rs 1,97,066 crore on major subsidies.&nbsp;

In a nutshell, the gap between revenue and expenditure is not only widening, but also the quality of expenditure, particularly capital expenditure available, is too tiny to make a discernible dent on development.&nbsp;

Interestingly, even as the interim estimates were lower than the Budgeted estimates — euphemistically described as revised estimates — the interim Budget (2019-20) presented by the NDA government on February 1, before the poll bugle was sounded, assumed a leap of faith increase in total receipts for the current fiscal that began on April 1.

Now that the BJP government is back in the saddle and is to present a full-fledged Budget on July 5, the new finance minister must find ways and means to raise resources to match the pre-poll estimated surge in receipts.

This is especially daunting when the economy has lost the mojo to fire on all cylinders, what with both agriculture and manufacturing performing poorly.&nbsp;

Many reputed economists had argued that both tight monetary and fiscal policies fashioned simultaneously by the NDA authorities, when they had to institute inflation-targeting goal for the apex bank and also clean up the banking system that was stymied by whopping non-performing loans (assets), led to a growth slowdown in the recent past.

No doubt, there is merit in clearing the backlog so that the financial system can operate on a clean slate, but the need to keep the banks recapitalised so that they can resume their lending activities to productive segments at affordable rates of interest, should not be lost sight of.&nbsp;

The government could not infuse adequate capital to re-energise the banks from undertaking their core dharma, though it ostentatiously put in place a recapitalisation plan in phases.

As the Modi-1 government was preoccupied with economic experiments like demonetisation that kept the banking system busy, financial institutions parked their funds with the apex bank rather than lend, lest they should get compelled to handle potential problems of loan defaults over and above what they are already exposed to!&nbsp;

Simultaneous pursuit of austerity when growth slowdown is visible and financial stress escalating has proved to be a lethal cocktail.&nbsp;

As the private sector is proverbially slow to initiate steps on its own in the absence of affordable capital, it is time that the authorities disabuse themselves of the notion that more funds to lubricate the engines of the economy should flow from the coffers of the government only.&nbsp;

A modest cut in the cash reserve ratio (CRR) will help banks to augment their credit flow to industry and the non-banking finance companies (NBFCs), which are in dire straits today for want of wherewithal to help small industries and housing sectors to find alternative finance.

Much is expected of the finance minister to revive growth sentiments in the economy, push up public expenditure in both physical and social infrastructure and help find finances for private investment to restart with dynamism.&nbsp;

As prudence is a virtue mostly attributed to women than men, one may hope Nirmala Sitharaman will balance growth and inflation without the associated trauma of trade-off in her maiden Budget. &nbsp; 
&nbsp;

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-tough-calls-on-budget-day-2758999">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

With the National Democratic Alliance (NDA) romping home easily for another five-year tenure, the first test is barely a few weeks away. Having steered choppy economic waters during its first term, the none-too-rosy state of the economy was seldom a binding constraint since security issues in the aftermath of Pulmawa, trumped bread-and-butter issues, including agrarian distress and lack of employment.

With the National Democratic Alliance (NDA) romping home easily for another five-year tenure, the first test is barely a few weeks away. Having steered choppy economic waters during its first term, the none-too-rosy state of the economy was seldom a binding constraint since security issues in the aftermath of Pulmawa, trumped bread-and-butter issues, including agrarian distress and lack of employment. The scattered opposition parties failed to galvanise themselves on any major economic issue, other than beating about the bush on the alleged corruption in the purchase of advanced aircraft, Rafale. Now that Prime Minister Narendra Modi has proved beyond a pale of doubt that he is a past-master in outmanoeuvring opponents at their own game, he will now have to devote time and energy in reviving the domestic economy and stoking demand so that the core sectors get kick-started to realise their optimal potential. No sooner has the new Finance Minister Nirmala Sitharaman assumed office, problems have come knocking at her door. With the Central Statistics Office’s (CSO) revealing that the economy lost further momentum to grow just by 5.8 per cent in the fourth quarter (Jan-Mar), the country’s gross domestic product (GDP) growth for fiscal 2018-19 at 6.8 per cent has understandably undershot even sanguine forecasts. To boot, the unaudited/interim accounts of the central government for 2018-19, also released alongside, presented the obverse and adverse side of the economic slowdown. Thus, the Centre compassed Rs 16,66,055 crore (91.40 per cent of corresponding revised estimate 2018-19 of total receipts) during 2018-19, comprising Rs 13,16,951 crore as tax revenue (net to Centre), Rs 2,46,219 crore of non-tax revenue and Rs 1,02,885 crore as non-debt capital receipts, which consists recovery of loans (Rs 17,840 crore) and disinvestment of public sector undertakings at Rs 85,045 crore. Against the receipts, the total expenditure incurred by the Centre was Rs 23,11,422 crore (94.07 per cent of the corresponding revised estimate of 2018-19) out of which Rs 20,08,463 crore was on revenue account and Rs 3,02,959 crore on capital account. What is particularly noteworthy is that out of the total revenue expenditure, as much as Rs 5,82,675 crore was on account of interest payments of past debt and Rs 1,97,066 crore on major subsidies. In a nutshell, the gap between revenue and expenditure is not only widening, but also the quality of expenditure, particularly capital expenditure available, is too tiny to make a discernible dent on development. Interestingly, even as the interim estimates were lower than the Budgeted estimates — euphemistically described as revised estimates — the interim Budget (2019-20) presented by the NDA government on February 1, before the poll bugle was sounded, assumed a leap of faith increase in total receipts for the current fiscal that began on April 1. Now that the BJP government is back in the saddle and is to present a full-fledged Budget on July 5, the new finance minister must find ways and means to raise resources to match the pre-poll estimated surge in receipts. This is especially daunting when the economy has lost the mojo to fire on all cylinders, what with both agriculture and manufacturing performing poorly. Many reputed economists had argued that both tight monetary and fiscal policies fashioned simultaneously by the NDA authorities, when they had to institute inflation-targeting goal for the apex bank and also clean up the banking system that was stymied by whopping non-performing loans (assets), led to a growth slowdown in the recent past. No doubt, there is merit in clearing the backlog so that the financial system can operate on a clean slate, but the need to keep the banks recapitalised so that they can resume their lending activities to productive segments at affordable rates of interest, should not be lost sight of. The government could not infuse adequate capital to re-energise the banks from undertaking their core dharma, though it ostentatiously put in place a recapitalisation plan in phases. As the Modi-1 government was preoccupied with economic experiments like demonetisation that kept the banking system busy, financial institutions parked their funds with the apex bank rather than lend, lest they should get compelled to handle potential problems of loan defaults over and above what they are already exposed to! Simultaneous pursuit of austerity when growth slowdown is visible and financial stress escalating has proved to be a lethal cocktail. As the private sector is proverbially slow to initiate steps on its own in the absence of affordable capital, it is time that the authorities disabuse themselves of the notion that more funds to lubricate the engines of the economy should flow from the coffers of the government only. A modest cut in the cash reserve ratio (CRR) will help banks to augment their credit flow to industry and the non-banking finance companies (NBFCs), which are in dire straits today for want of wherewithal to help small industries and housing sectors to find alternative finance. Much is expected of the finance minister to revive growth sentiments in the economy, push up public expenditure in both physical and social infrastructure and help find finances for private investment to restart with dynamism. As prudence is a virtue mostly attributed to women than men, one may hope Nirmala Sitharaman will balance growth and inflation without the associated trauma of trade-off in her maiden Budget. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Much is expected of finance minister Nirmala Sitharaman to revive economic growth

The world's top financial policymakers admitted Sunday that <a href="https://www.wionews.com/world/in-historic-first-g20-weighs-ageing-as-global-risk-225592">trade tensions had worsened</a>, posing a risk for the global economy, after a G20 meeting that laid bare differences between the United States and other nations.

Following 30 hours of wrangling in what one official described as a "tense" atmosphere, the G20 finance minister and central bank chiefs produced a final statement acknowledging that "growth remains low and risks remain tilted to the downside".

"Most importantly, trade and geopolitical tensions have intensified," <a href="https://www.wionews.com/world/trade-war-tariff-threats-to-challenge-g20-finance-leaders-solidarity-225361">the G20</a> said, adding they "stood ready to take further action" if required.

As a compromise pushed by Washington, the statement omitted language from a previous draft that mentioned a "pressing need to resolve trade tensions".

The statement capped two days of talks in the western Japanese city of Fukuoka that also tackled the thorny issue of taxing internet giants and, for the first time, the economic challenges posed by ageing.

But trade battles were front and centre of policymakers' minds as the US and China continue to threaten each other with tariffs that economists fear could slam the brakes on global growth.

The IMF has said US-China tariffs could shave global GDP by 0.5 per cent in 2020 or about US$455 billion, stressing the need to resolve the differences to avoid plunging the world economy into another crisis.

IMF chief Christine Lagarde said that trade conflicts pose the "principal threat" to the global economic outlook.

Tariffs imposed by the world's top two economies could make a "significant dent" in the global recovery, added Lagarde.

The G20 ministers heaved a sigh of relief just hours before the meeting when the US and Mexico clinched a deal over immigration that stopped Washington imposing five-per cent tariffs on Mexican goods.

But US Treasury Secretary Steven Mnuchin told reporters that Washington stood ready to impose more tariffs on China if President Donald Trump and China's Xi Jinping fail to strike a deal at the G20 summit later this month in Osaka.

"If China wants to come back to the table and negotiate on the basis that we were negotiating, we can get a great historic deal. If they don't, we'll proceed with our tariffs," Mnuchin told reporters on Saturday.

He tweeted on Sunday he had had a "constructive" meeting with China's central bank governor Yi Gang, during which there was a "candid discussion on trade issues".

Taking a different line from the other policymakers, Mnuchin said the slowdown in some parts of the world was not due to trade difficulties and even said the friction could benefit some countries if companies relocated from China to avoid tariffs. "There will be winners and losers," said the treasury secretary.

&nbsp;'I don't like them'&nbsp;

The quandary of reforming the global tax system to take into account the rise of internet giants such as Google and Facebook was another issue exercising the minds of policymakers in the coastal city.

In the final statement, the G20 agreed to "redouble our efforts for a consensus-based solution with a final report by 2020".

However, here again, the Fukuoka meeting exposed a difference of opinion over what form this reform should take.

Frustrated by a lack of global action on the issue, some countries such as Britain and France have already introduced a so-called digital tax, but Mnuchin was blunt in his assessment of these policies.

"I would say the US has significant concerns with the two current taxes that are being proposed by France and the UK but let me give them some good credit for proposing them in the sense (that) they have created an urgency to deal with this issue," Mnuchin said at a public meeting before the formal G20 started.

"Although I don't like them, I do appreciate the impetus for these issues," added the top US finance official.

Appropriately for a meeting held in Japan -- which is on track to become the world's first "super-aged" society in which more than 28 per cent of the population is over 65 -- the G20 ministers discussed for the first time the "challenges and opportunities" posed by ageing.

They suggested getting more women and elderly people into the workforce and "promoting elderly-friendly industries", as well as reforming the fiscal and banking systems to take into account ageing populations.

"You basically have a very large portion of mankind that is ageing and then the workforce is shrinking," OECD Secretary-General Angel Gurria told AFP in an interview.

Solving the issue will require wholesale changes to the way society is organised, added Gurria.&nbsp;

The world's top financial policymakers admitted Sunday that trade tensions had worsened, posing a risk for the global economy, after a G20 meeting that laid bare differences between the United States and other nations.

The world's top financial policymakers admitted Sunday that trade tensions had worsened, posing a risk for the global economy, after a G20 meeting that laid bare differences between the United States and other nations. Following 30 hours of wrangling in what one official described as a "tense" atmosphere, the G20 finance minister and central bank chiefs produced a final statement acknowledging that "growth remains low and risks remain tilted to the downside". "Most importantly, trade and geopolitical tensions have intensified," the G20 said, adding they "stood ready to take further action" if required. As a compromise pushed by Washington, the statement omitted language from a previous draft that mentioned a "pressing need to resolve trade tensions". The statement capped two days of talks in the western Japanese city of Fukuoka that also tackled the thorny issue of taxing internet giants and, for the first time, the economic challenges posed by ageing. But trade battles were front and centre of policymakers' minds as the US and China continue to threaten each other with tariffs that economists fear could slam the brakes on global growth. The IMF has said US-China tariffs could shave global GDP by 0.5 per cent in 2020 or about US$455 billion, stressing the need to resolve the differences to avoid plunging the world economy into another crisis. IMF chief Christine Lagarde said that trade conflicts pose the "principal threat" to the global economic outlook. Tariffs imposed by the world's top two economies could make a "significant dent" in the global recovery, added Lagarde. The G20 ministers heaved a sigh of relief just hours before the meeting when the US and Mexico clinched a deal over immigration that stopped Washington imposing five-per cent tariffs on Mexican goods. But US Treasury Secretary Steven Mnuchin told reporters that Washington stood ready to impose more tariffs on China if President Donald Trump and China's Xi Jinping fail to strike a deal at the G20 summit later this month in Osaka. "If China wants to come back to the table and negotiate on the basis that we were negotiating, we can get a great historic deal. If they don't, we'll proceed with our tariffs," Mnuchin told reporters on Saturday. He tweeted on Sunday he had had a "constructive" meeting with China's central bank governor Yi Gang, during which there was a "candid discussion on trade issues". Taking a different line from the other policymakers, Mnuchin said the slowdown in some parts of the world was not due to trade difficulties and even said the friction could benefit some countries if companies relocated from China to avoid tariffs. "There will be winners and losers," said the treasury secretary. 'I don't like them' The quandary of reforming the global tax system to take into account the rise of internet giants such as Google and Facebook was another issue exercising the minds of policymakers in the coastal city. In the final statement, the G20 agreed to "redouble our efforts for a consensus-based solution with a final report by 2020". However, here again, the Fukuoka meeting exposed a difference of opinion over what form this reform should take. Frustrated by a lack of global action on the issue, some countries such as Britain and France have already introduced a so-called digital tax, but Mnuchin was blunt in his assessment of these policies. "I would say the US has significant concerns with the two current taxes that are being proposed by France and the UK but let me give them some good credit for proposing them in the sense (that) they have created an urgency to deal with this issue," Mnuchin said at a public meeting before the formal G20 started. "Although I don't like them, I do appreciate the impetus for these issues," added the top US finance official. Appropriately for a meeting held in Japan -- which is on track to become the world's first "super-aged" society in which more than 28 per cent of the population is over 65 -- the G20 ministers discussed for the first time the "challenges and opportunities" posed by ageing. They suggested getting more women and elderly people into the workforce and "promoting elderly-friendly industries", as well as reforming the fiscal and banking systems to take into account ageing populations. "You basically have a very large portion of mankind that is ageing and then the workforce is shrinking," OECD Secretary-General Angel Gurria told AFP in an interview. Solving the issue will require wholesale changes to the way society is organised, added Gurria.

G20 says worsening trade wars pose risk to world economy

<a href="https://www.wionews.com/business-economy/ilfs-payment-default-crisis-enforcement-directorate-conducts-raid-on-former-directors-in-mumbai-220587">IL&amp;FS Financial Services</a> (IFIN) said this in a filing to exchanges, dated May 30, in response to media reports that probes had found discrepancies in loan accounts associated with IL&amp;FS.

The outcome of these investigations is still pending, IFIN said, adding that it had engaged Grant Thornton to conduct a forensic audit.

In March, Reuters reported that an interim report by Grant Thornton had found that a third of the total outstanding loans by IFIN to borrowers were either unsecured or had inadequate collateral.

On May 31, a leading daily reported that the Serious Fraud Investigation Office (SFIO) had filed charges against several people and entities associated with IL&amp;FS.

The newspaper also reported that the SFIO accused IL&amp;FS's auditors and others of concealing information and falsifying accounts.

A spokesman for IL&amp;FS did not respond to a Reuters request for comment on the SFIO charges.

The series of defaults by IL&amp;FS in 2018 led to a slew of credit rating downgrades on the company and its subsidiaries and triggered a massive sell-off in stock and debt markets.

The Indian government took control of IL&amp;FS in October and replaced its board in a bid to insulate the financial system from contagion, as it feared the lender's collapse would cause "catastrophic" damage to financial markets and the economy. 
&nbsp;

IL&FS Financial Services (IFIN) said this in a filing to exchanges, dated May 30, in response to media reports that probes had found discrepancies in loan accounts associated with IL&FS.

IL&FS Financial Services (IFIN) said this in a filing to exchanges, dated May 30, in response to media reports that probes had found discrepancies in loan accounts associated with IL&FS. The outcome of these investigations is still pending, IFIN said, adding that it had engaged Grant Thornton to conduct a forensic audit. In March, Reuters reported that an interim report by Grant Thornton had found that a third of the total outstanding loans by IFIN to borrowers were either unsecured or had inadequate collateral. On May 31, a leading daily reported that the Serious Fraud Investigation Office (SFIO) had filed charges against several people and entities associated with IL&FS. The newspaper also reported that the SFIO accused IL&FS's auditors and others of concealing information and falsifying accounts. A spokesman for IL&FS did not respond to a Reuters request for comment on the SFIO charges. The series of defaults by IL&FS in 2018 led to a slew of credit rating downgrades on the company and its subsidiaries and triggered a massive sell-off in stock and debt markets. The Indian government took control of IL&FS in October and replaced its board in a bid to insulate the financial system from contagion, as it feared the lender's collapse would cause "catastrophic" damage to financial markets and the economy.

IL&FS unit confirms investigations by government authorities

India's gross domestic product (GDP) growth in the January-March quarter of 2018-19 slipped to 5.8 per cent&nbsp;against 6.6% in the third quarter, due to poor performance in agriculture and manufacturing sectors, official data released by Central Statistics Office showed.

The Central Statistics Office (CSO) also revealed that GDP growth during 2018-19 fiscal stood at 6.8 per cent, lower than 7.2 per cent in the previous financial year.

The growth in gross domestic product (GDP) was slowest since 2014-15. The previous low was 6.4 per cent in 2013-14.

The fourth quarter growth was below China's 6.4 per cent.The slowdown in the economy will place India behind China's pace for the first time in nearly two years.

Meanwhile, the fiscal deficit for 2018-19 came in at 3.39 per cent of GDP, marginally lower than 3.4 per cent estimated in the revised estimates of the Budget, mainly due to increase in non-tax revenue and lower expenditure.

In absolute terms, fiscal deficit at the end of March 31, 2019, stood at Rs 6.45 lakh crore as against Rs 6.34 lakh crore in the revised estimates of Budget.

The fiscal deficit for 2018-19 works out to be 3.39 per cent of GDP, as per data released by Controller General of Accounts (CGA).

(With inputs from agencies)

India's gross domestic product (GDP) growth in the January-March quarter of 2018-19 slipped to 5.8 per cent against 6.6% in the third quarter, due to poor performance in agriculture and manufacturing sectors, official data released by Central Statistics Office showed.

India's gross domestic product (GDP) growth in the January-March quarter of 2018-19 slipped to 5.8 per cent against 6.6% in the third quarter, due to poor performance in agriculture and manufacturing sectors, official data released by Central Statistics Office showed. The Central Statistics Office (CSO) also revealed that GDP growth during 2018-19 fiscal stood at 6.8 per cent, lower than 7.2 per cent in the previous financial year. The growth in gross domestic product (GDP) was slowest since 2014-15. The previous low was 6.4 per cent in 2013-14. The fourth quarter growth was below China's 6.4 per cent.The slowdown in the economy will place India behind China's pace for the first time in nearly two years. Meanwhile, the fiscal deficit for 2018-19 came in at 3.39 per cent of GDP, marginally lower than 3.4 per cent estimated in the revised estimates of the Budget, mainly due to increase in non-tax revenue and lower expenditure. In absolute terms, fiscal deficit at the end of March 31, 2019, stood at Rs 6.45 lakh crore as against Rs 6.34 lakh crore in the revised estimates of Budget. The fiscal deficit for 2018-19 works out to be 3.39 per cent of GDP, as per data released by Controller General of Accounts (CGA). (With inputs from agencies)

India's GDP growth rate slows to 5.8% in Jan-March quarter, slowest in two years

<a href="https://www.wionews.com/world/trump-vows-to-appeal-us-judges-decision-on-sharing-financial-records-with-congress-220248">US President Donald Trump</a>, facing a potentially difficult path to winning a second term in November 2020, on Monday told supporters in Pennsylvania that his trade war had strengthened the battleground state's steel industry and jobs.

Although Trump does not launch his re-election bid officially until next month, his appearance at a raucous rally in an airport hangar in northeastern Pennsylvania, using Air Force One as a backdrop, had the hallmarks of a campaign event.

He took aim at Democratic front-runner and former Vice President Joe Biden. "Sleepy Joe said that he's running to 'save the world.' ... He's going to save every country but ours," Trump said.

The president previewed the arguments he will make to voters in the 2020 election, crediting his trade stance with helping the US economy.

"When you have the best employment numbers in history, when you have the best unemployment numbers in history, when you have the best economy probably that we've ever had, I don't know - how the hell do you lose this election, right?" he said.

Trump has waged a high-stakes trade dispute with China, and tariffs imposed by both countries on a range of goods have raised fears of a global economic slowdown.

Trump last year also imposed tariffs on steel and aluminum. He claims that the move saved and created jobs at US mills as well as spurred investment such as by US Steel in Pennsylvania. Many economists say that those benefits are outweighed by higher costs to US companies and consumers.

Trump was stumping for a special House of Representatives election in Pennsylvania, one of three "Rust Belt" states he won in 2016 with votes from white, blue-collar voters who had previously voted Democratic.

His campaign sees the state as key to keeping control of the White House, along with Michigan and Wisconsin. A Quinnipiac University poll last week showed the president trailing the main Democratic contenders in Pennsylvania in particular.

"I'll be seeing a lot of you over the next year," Trump said. "Gotta win this state."

'Troublesome' trio of states

Trump has already been raising money for his re-election and holding political rallies for many months. But he plans an official rollout for his campaign in mid-June, the four-year anniversary of when he rode the escalator at Trump Tower down to a crowd of supporters and announced his candidacy.

He is likely to hold a rally in Florida, possibly on June 15, to mark the occasion, sources said. The Trump campaign declined to comment.

Trump, who considers Florida to be something of a second home, won the state in 2016. But as is the case for Trump in many battleground states, his victory is not assured there in 2020, and he will likely face a fight to win it again.

The Trump campaign has privately expressed concern about the trio of upper Midwest swing states that provided his 2016 margin of victory, Pennsylvania, Michigan and Wisconsin.

A source close to the campaign called Trump's position in those states "troublesome."

"They're awakening to the fact that they've got a problem. They have a solid base among Republicans but a lot of independent voters that gave them the margin in these states are not doing well," the source said.

'Sleepy Joe'

Since Trump took over as president in early 2017, the United States has had low unemployment and strong growth. Typically, presidents with an economy this vibrant would be strong bets for re-election.

But Trump's polarizing presidency has given hope to a host of Democratic contenders that he can be denied a second term.

Biden has sounded a unifying theme to try to rally Americans behind his candidacy. In second place in the Democratic polls is democratic socialist Bernie Sanders.

Biden has put his campaign headquarters in Philadelphia and has held two rallies in the state during the past month.

Trump has dubbed Biden "Sleepy Joe" to try to undermine him, in much the same way as he gave Republican contender Jeb Bush the nickname "low-energy Jeb" in 2016.

US President Donald Trump, facing a potentially difficult path to winning a second term in November 2020, on Monday told supporters in Pennsylvania that his trade war had strengthened the battleground state's steel industry and jobs.

US President Donald Trump, facing a potentially difficult path to winning a second term in November 2020, on Monday told supporters in Pennsylvania that his trade war had strengthened the battleground state's steel industry and jobs. Although Trump does not launch his re-election bid officially until next month, his appearance at a raucous rally in an airport hangar in northeastern Pennsylvania, using Air Force One as a backdrop, had the hallmarks of a campaign event. He took aim at Democratic front-runner and former Vice President Joe Biden. "Sleepy Joe said that he's running to 'save the world.' ... He's going to save every country but ours," Trump said. The president previewed the arguments he will make to voters in the 2020 election, crediting his trade stance with helping the US economy. "When you have the best employment numbers in history, when you have the best unemployment numbers in history, when you have the best economy probably that we've ever had, I don't know - how the hell do you lose this election, right?" he said. Trump has waged a high-stakes trade dispute with China, and tariffs imposed by both countries on a range of goods have raised fears of a global economic slowdown. Trump last year also imposed tariffs on steel and aluminum. He claims that the move saved and created jobs at US mills as well as spurred investment such as by US Steel in Pennsylvania. Many economists say that those benefits are outweighed by higher costs to US companies and consumers. Trump was stumping for a special House of Representatives election in Pennsylvania, one of three "Rust Belt" states he won in 2016 with votes from white, blue-collar voters who had previously voted Democratic. His campaign sees the state as key to keeping control of the White House, along with Michigan and Wisconsin. A Quinnipiac University poll last week showed the president trailing the main Democratic contenders in Pennsylvania in particular. "I'll be seeing a lot of you over the next year," Trump said. "Gotta win this state." 'Troublesome' trio of states Trump has already been raising money for his re-election and holding political rallies for many months. But he plans an official rollout for his campaign in mid-June, the four-year anniversary of when he rode the escalator at Trump Tower down to a crowd of supporters and announced his candidacy. He is likely to hold a rally in Florida, possibly on June 15, to mark the occasion, sources said. The Trump campaign declined to comment. Trump, who considers Florida to be something of a second home, won the state in 2016. But as is the case for Trump in many battleground states, his victory is not assured there in 2020, and he will likely face a fight to win it again. The Trump campaign has privately expressed concern about the trio of upper Midwest swing states that provided his 2016 margin of victory, Pennsylvania, Michigan and Wisconsin. A source close to the campaign called Trump's position in those states "troublesome." "They're awakening to the fact that they've got a problem. They have a solid base among Republicans but a lot of independent voters that gave them the margin in these states are not doing well," the source said. 'Sleepy Joe' Since Trump took over as president in early 2017, the United States has had low unemployment and strong growth. Typically, presidents with an economy this vibrant would be strong bets for re-election. But Trump's polarizing presidency has given hope to a host of Democratic contenders that he can be denied a second term. Biden has sounded a unifying theme to try to rally Americans behind his candidacy. In second place in the Democratic polls is democratic socialist Bernie Sanders. Biden has put his campaign headquarters in Philadelphia and has held two rallies in the state during the past month. Trump has dubbed Biden "Sleepy Joe" to try to undermine him, in much the same way as he gave Republican contender Jeb Bush the nickname "low-energy Jeb" in 2016.

Trump tells Pennsylvania voters that trade war has helped economy

The rupee Tuesday rose marginally by 2 paise to close at 69.72 against the US dollar in a lacklustre trade as participants preferred to sit on the fence ahead of the results of general polls.

A strengthening US dollar in overseas markets, weak domestic equity markets, and surging crude prices weighed on the trading sentiment, forex dealers said.

At the interbank foreign exchange, the domestic unit opened slightly lower at 69.75 and fell further to touch the day's low of 69.81 in line with weak equity markets.

Backed by foreign fund inflows, the local currency made a recovery later to touch the day's high of 69.66 before settling at 69.72, registering a rise of 2 paise over its previous close.

The rupee had appreciated 49 paise to 69.74 against the US dollar in the previous session.

"Indian rupee consolidates in a small range of 69.76 to 69.66 in today's session as market participants are now looking forward to the actual election results after a surge in equity and bond prices. Month end dollar demand from importers is expected to come amid higher crude oil prices. This could put pressure on the domestic currency," said VK Sharma, Head PCG &amp; Capital Markets Strategy, HDFC Securities.

A report by Goldman Sachs suggested that the USD/INR would trade near the 69-level in the next three months if the official election outcome bear out the exit poll trends. 
Bond prices also eased Tuesday with the yield of the benchmark 10-year government securities inching upward to 7.30.

The US currency was trading strong in overseas market as the dollar index was up by 0.13 per cent to 98.06 against its six global rivals.

The 30-share index ended 382.87 points, or 0.97 per cent, lower at 38,969.80. The gauge hit the day's low of 38,884.85. The broader NSE Nifty plunged 119.15 points, or 1.01 per cent, to 11,709.10.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,185.44 crore on Tuesday, provisional exchange data showed.

Brent crude, the global benchmark, was trading at 72.28 per barrel higher by 0.43 per cent. Oil prices surged after major producers assured that supplies were sufficient, but gains were capped due to China-US tensions.

Meanwhile, the Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.5466 and for rupee/euro at 77.5658. The reference rate for rupee/British pound was fixed at 88.5426 and for rupee/100 Japanese yen at 63.14.&nbsp;

The rupee Tuesday rose marginally by 2 paise to close at 69.72 against the US dollar in a lacklustre trade as participants preferred to sit on the fence ahead of the results of general polls.

The rupee Tuesday rose marginally by 2 paise to close at 69.72 against the US dollar in a lacklustre trade as participants preferred to sit on the fence ahead of the results of general polls. A strengthening US dollar in overseas markets, weak domestic equity markets, and surging crude prices weighed on the trading sentiment, forex dealers said. At the interbank foreign exchange, the domestic unit opened slightly lower at 69.75 and fell further to touch the day's low of 69.81 in line with weak equity markets. Backed by foreign fund inflows, the local currency made a recovery later to touch the day's high of 69.66 before settling at 69.72, registering a rise of 2 paise over its previous close. The rupee had appreciated 49 paise to 69.74 against the US dollar in the previous session. "Indian rupee consolidates in a small range of 69.76 to 69.66 in today's session as market participants are now looking forward to the actual election results after a surge in equity and bond prices. Month end dollar demand from importers is expected to come amid higher crude oil prices. This could put pressure on the domestic currency," said VK Sharma, Head PCG & Capital Markets Strategy, HDFC Securities. A report by Goldman Sachs suggested that the USD/INR would trade near the 69-level in the next three months if the official election outcome bear out the exit poll trends. Bond prices also eased Tuesday with the yield of the benchmark 10-year government securities inching upward to 7.30. The US currency was trading strong in overseas market as the dollar index was up by 0.13 per cent to 98.06 against its six global rivals. The 30-share index ended 382.87 points, or 0.97 per cent, lower at 38,969.80. The gauge hit the day's low of 38,884.85. The broader NSE Nifty plunged 119.15 points, or 1.01 per cent, to 11,709.10. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,185.44 crore on Tuesday, provisional exchange data showed. Brent crude, the global benchmark, was trading at 72.28 per barrel higher by 0.43 per cent. Oil prices surged after major producers assured that supplies were sufficient, but gains were capped due to China-US tensions. Meanwhile, the Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.5466 and for rupee/euro at 77.5658. The reference rate for rupee/British pound was fixed at 88.5426 and for rupee/100 Japanese yen at 63.14.

Rupee edges up 2 paise against US dollar as investors turn cautious

The U.S. accusation that China has been forcing foreign companies to transfer technology is groundless and nothing but a pretext aimed at suppressing China's development, said Chinese experts.

US accusation of 'forced technology transfer' is baseless: experts

Though all of India is waiting to see who wins the ongoing 2019 Lok Sabha elections, or better still, who will form the next government, it is pretty certain to me that whoever wins will have a challenge on hands to run the administration, because the economy is in a strange shape.

It is fashionable for any new government to blame its predecessor and also try to come out with new policies, and we saw a lot of it when Prime Minister Narendra Modi's NDA government did and said things that fixed responsibility on the previous UPA rule. It is true that the BJP-led government ended what was perceived to be a policy paralysis on several fronts and took measures to revive the power sector, fix a controversial spectrum allocation scheme in telecommunications and did a lot to make investing in India easier. Steps like the MUDRA loan scheme for entrepreneurs and brand-name schemes like Digital India and Startup India gave (at least in the eyes of the government itself) a fancy packaging edge to the economy.

But then, I ask myself, what if Modi leads the new government formed over the next few weeks? My view is that this time, it would be difficult for him to go back seven years or 70 to buy himself more time. Democracy works on the principle that if you have five years to rule, you do your best in those five years in a manner that those who voted for you get a good enough impression to elect you for another five. In the case of Modi, given his decisive steps on several fronts and his incredible capacity to articulate things, where he seemed to lack in the outcome, he made up in persuasion to buy more time. However, a second chance in politics is like a second inning. It gives elbow room to score runs but getting a second chance on a second chance is no option.

The strange thing about the Indian economy now is that there are two narratives that do not seem to intersect. One is that of investors, industries and infrastructure seekers. The other is of farmers and job seekers. To please the former you need good, clean policies and spending to boost the things that help industries. However, there is no guarantee that the investment that flows in generates jobs for tens of millions of youths in the short run. Any government that comes to power will have to make its choice carefully.

The Modi government reined in the fiscal deficit, but Rahul Gandhi-led Congress has made a big deal out of a shortage of jobs, an agrarian crisis and the goods and services tax (GST). Demonetisation of high-value notes by Modi has not really yielded fruits. All this leaves a big challenge to him if he gets re-elected. His current campaign has focused primarily on his being the leading "Chowkidar" of the nation with the Balakot air strikes and decisive promises to check terrorism. But, with 125 crore people in the world's fastest-growing major economy, the focus has to come back to investment, inflation management and jobs.

There is a controversy now that GDP growth may have been slower than estimated in recent years because the government's data estimates took into account a large chunk of shell companies that showed no real activity. Meanwhile, the NDA government's plan to introduce the Insolvency and Bankruptcy Code has run into rough weather. What this means is that it is taking longer for banks to get money out of companies that need to pay them back. The Supreme Court has got involved in the matter, adding obstacles in the administrative process. Indian businessmen love to fight in courts and particularly fight the government. Groups with state blessings, such as IL&amp;FS are in deep trouble, while a slew of brand name companies are in various states of crisis, such as Essar Steel, builder groups Jaypee and Amrapali, and, of course, the high-profile Jet Airways. These names are only symbolic of a deeper crisis in the economy in which too many people took too big bets on money taken from state-run banks in a manner that hurt both growth and jobs.

India's economic growth slowed down in 2018-19 due to declining growth in private consumption, slow growth in fixed investment, and muted exports. This happened even as agriculture suffered. Unemployment, meanwhile rose to 7.6 &nbsp;per cent in April, up from 6.7 per cent in March.&nbsp;

Loans that either did not yield interest or not paid back, called non-performing assets (NPAs), added up to more than Rs 10 lakh crore at the end of March. As much as 86 per cent of this was in public sector banks.

The next government needs to spend more taxpayer money to revive its banks so they can lend to help industries and agriculture. But fiscal deficit ran out of control this year after what seemed like a fine period of fiscal consolidation. Fiscal deficit crossed 134 per cent of the government's budget estimate for 2018/19 by the end of February, against 120 per cent a year earlier and the Centre upped its fiscal deficit target to 3.4 per cent from 3.3 per cent.

If Congress comes anywhere near power - either as the leader of a coalition or as part of it - it has to deliver on agriculture and jobs, and that requires fiscal spending muscle. If Modi comes back to power, he has to revive banking and industry and hope that translates into well-being for common Indians in rural areas.&nbsp;

While all that happens, China is having a trade war with the US, which is also pressuring India to follow its sanctions on Iranian oil, which is key for India. The US has prohibited India from importing oil from Iran after the waiver for India ran out on May 1.

Neither the fiscal situation nor the international trade environment is easy for the next government -- whoever that is. As they say in cricket, it would be a tough wicket to bat on, especially for any government that wants to keep both farmers and unemployed youths happy.

&nbsp;(This article was originally published on The ZeeNews. Read the <a href="https://zeenews.india.com/blogs/paisa-paisa-paisa-whoever-wins-the-2019-lok-sabha-elections-the-economy-will-be-their-biggest-challenge-2203594.html">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp; 
&nbsp;

Though all of India is waiting to see who wins the ongoing 2019 Lok Sabha elections, or better still, who will form the next government, it is pretty certain to me that whoever wins will have a challenge on hands to run the administration, because the economy is in a strange shape.

Though all of India is waiting to see who wins the ongoing 2019 Lok Sabha elections, or better still, who will form the next government, it is pretty certain to me that whoever wins will have a challenge on hands to run the administration, because the economy is in a strange shape. It is fashionable for any new government to blame its predecessor and also try to come out with new policies, and we saw a lot of it when Prime Minister Narendra Modi's NDA government did and said things that fixed responsibility on the previous UPA rule. It is true that the BJP-led government ended what was perceived to be a policy paralysis on several fronts and took measures to revive the power sector, fix a controversial spectrum allocation scheme in telecommunications and did a lot to make investing in India easier. Steps like the MUDRA loan scheme for entrepreneurs and brand-name schemes like Digital India and Startup India gave (at least in the eyes of the government itself) a fancy packaging edge to the economy. But then, I ask myself, what if Modi leads the new government formed over the next few weeks? My view is that this time, it would be difficult for him to go back seven years or 70 to buy himself more time. Democracy works on the principle that if you have five years to rule, you do your best in those five years in a manner that those who voted for you get a good enough impression to elect you for another five. In the case of Modi, given his decisive steps on several fronts and his incredible capacity to articulate things, where he seemed to lack in the outcome, he made up in persuasion to buy more time. However, a second chance in politics is like a second inning. It gives elbow room to score runs but getting a second chance on a second chance is no option. The strange thing about the Indian economy now is that there are two narratives that do not seem to intersect. One is that of investors, industries and infrastructure seekers. The other is of farmers and job seekers. To please the former you need good, clean policies and spending to boost the things that help industries. However, there is no guarantee that the investment that flows in generates jobs for tens of millions of youths in the short run. Any government that comes to power will have to make its choice carefully. The Modi government reined in the fiscal deficit, but Rahul Gandhi-led Congress has made a big deal out of a shortage of jobs, an agrarian crisis and the goods and services tax (GST). Demonetisation of high-value notes by Modi has not really yielded fruits. All this leaves a big challenge to him if he gets re-elected. His current campaign has focused primarily on his being the leading "Chowkidar" of the nation with the Balakot air strikes and decisive promises to check terrorism. But, with 125 crore people in the world's fastest-growing major economy, the focus has to come back to investment, inflation management and jobs. There is a controversy now that GDP growth may have been slower than estimated in recent years because the government's data estimates took into account a large chunk of shell companies that showed no real activity. Meanwhile, the NDA government's plan to introduce the Insolvency and Bankruptcy Code has run into rough weather. What this means is that it is taking longer for banks to get money out of companies that need to pay them back. The Supreme Court has got involved in the matter, adding obstacles in the administrative process. Indian businessmen love to fight in courts and particularly fight the government. Groups with state blessings, such as IL&FS are in deep trouble, while a slew of brand name companies are in various states of crisis, such as Essar Steel, builder groups Jaypee and Amrapali, and, of course, the high-profile Jet Airways. These names are only symbolic of a deeper crisis in the economy in which too many people took too big bets on money taken from state-run banks in a manner that hurt both growth and jobs. India's economic growth slowed down in 2018-19 due to declining growth in private consumption, slow growth in fixed investment, and muted exports. This happened even as agriculture suffered. Unemployment, meanwhile rose to 7.6 per cent in April, up from 6.7 per cent in March. Loans that either did not yield interest or not paid back, called non-performing assets (NPAs), added up to more than Rs 10 lakh crore at the end of March. As much as 86 per cent of this was in public sector banks. The next government needs to spend more taxpayer money to revive its banks so they can lend to help industries and agriculture. But fiscal deficit ran out of control this year after what seemed like a fine period of fiscal consolidation. Fiscal deficit crossed 134 per cent of the government's budget estimate for 2018/19 by the end of February, against 120 per cent a year earlier and the Centre upped its fiscal deficit target to 3.4 per cent from 3.3 per cent. If Congress comes anywhere near power - either as the leader of a coalition or as part of it - it has to deliver on agriculture and jobs, and that requires fiscal spending muscle. If Modi comes back to power, he has to revive banking and industry and hope that translates into well-being for common Indians in rural areas. While all that happens, China is having a trade war with the US, which is also pressuring India to follow its sanctions on Iranian oil, which is key for India. The US has prohibited India from importing oil from Iran after the waiver for India ran out on May 1. Neither the fiscal situation nor the international trade environment is easy for the next government -- whoever that is. As they say in cricket, it would be a tough wicket to bat on, especially for any government that wants to keep both farmers and unemployed youths happy. (This article was originally published on The ZeeNews. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Whoever wins the 2019 Lok Sabha elections, the economy will be their biggest challenge

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Retail inflation rose marginally to 2.92 per cent in April, mainly due to a spike in food prices.

The inflation based on Consumer Price Index (CPI) 2.86 per cent in the previous month and 4.58 per cent in April 2018, said the data released by the Central Statistics Office (CSO).

As per the data, the inflation in the food basket was 1.1 per cent in April, up from 0.3 per cent in March.

The Reserve Bank of India mainly factors in the CPI-based inflation while arriving at its monetary policy.&nbsp;

Wholesale price-based inflation rose for the second consecutive month <a href="https://www.wionews.com/india-news/inflation-spikes-in-march-as-food-fuel-get-costlier-210567">to 3.18 per cent in March</a> on costlier food and fuel, government data released Monday showed.

The Wholesale Price Index (WPI) based inflation was at 2.93 per cent in February. It was 2.74 per cent in March 2018.

Inflation in food articles hardened with a steep rise in prices of vegetables during March 2019.

Vegetable inflation was at 28.13 per cent in March, up from 6.82 per cent in the previous month. However, inflation in potato cooled substantially to 1.30 per cent, from 23.40 per cent in February.

Inflation in food articles basket was 5.68 per cent during March.

Retail inflation rose marginally to 2.92 per cent in April, mainly due to a spike in food prices. The inflation based on Consumer Price Index (CPI) 2.86 per cent in the previous month and 4.

Retail inflation rose marginally to 2.92 per cent in April, mainly due to a spike in food prices. The inflation based on Consumer Price Index (CPI) 2.86 per cent in the previous month and 4.58 per cent in April 2018, said the data released by the Central Statistics Office (CSO). As per the data, the inflation in the food basket was 1.1 per cent in April, up from 0.3 per cent in March. The Reserve Bank of India mainly factors in the CPI-based inflation while arriving at its monetary policy. Wholesale price-based inflation rose for the second consecutive month to 3.18 per cent in March on costlier food and fuel, government data released Monday showed. The Wholesale Price Index (WPI) based inflation was at 2.93 per cent in February. It was 2.74 per cent in March 2018. Inflation in food articles hardened with a steep rise in prices of vegetables during March 2019. Vegetable inflation was at 28.13 per cent in March, up from 6.82 per cent in the previous month. However, inflation in potato cooled substantially to 1.30 per cent, from 23.40 per cent in February. Inflation in food articles basket was 5.68 per cent during March.

Spike in food prices inches up retail inflation to 2.92% in April

Chinese Premier<a href="https://www.google.com/url?q=https://www.wionews.com/world/with-economy-slowing-china-premier-li-keqiang-says-tough-struggle-ahead-201278&amp;sa=U&amp;ved=0ahUKEwiDsvKu2cnhAhUz6nMBHQwUBbkQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw16rBTqWK9IsoII5icEuMEr"> Li Keqiang</a> will meet leaders from eastern and central Europe in Croatia on Friday to talk business, fresh from a key summit with EU where he pledged opening up his country's economy.

The coastal city of Dubrovnik is hosting the eighth annual "16+1 cooperation" -- an economic platform for Beijing's investments in 11 eastern European Union states and five Western Balkan countries.

The grouping has been eyed cautiously in western European capitals as an attempt to "divide and rule" the bloc, a goal Li has denied.&nbsp;

In an article published in Croatian dailies ahead of the gathering, the Chinese premier tried to paint the summit in a cheery light:

"When we put 17 multicolour countries together we get a colour richer than a rainbow," he wrote in the article titled "Multicolour countries, spacious future".

"If we build a rainbow bridge through Asia and Europe, we will achieve nice future cooperation."

Eastern Europe is a core component of Beijing's vast "Belt and Road" project, valued at up to $1 trillion and aimed at constructing land and sea links to allow Chinese exports to flow westward.&nbsp;

China has previously announced a $10 billion credit line and $3 billion investment fund for the 16-country region.

So far its record on follow-through is mixed, with some major construction projects underway while other promised investments have been delayed or scrapped.

For instance, building on one of 16+1's flag-ship projects -- a railway from Belgrade to Budapest -- has just started in Serbia but is held up by snags in Hungary, ultimately making scant progress five years after it was announced.

'Pilot project'

This year's summit comes just three days after a top EU-China meeting, attended by Li, held as Brussels demands more balanced economic ties with a country it recently labelled as a "systemic rival".

In Brussels, on Tuesday the Asian giant pledged to push further to open its economy and deepen ties with the bloc.

EU Council president Donald Tusk hailed Beijing's new commitments as a "breakthrough" with both sides committed to globalisation and pursuing international rules.

Brussels and Beijing in a document called for "broader and more facilitated, non-discriminatory market access," in wording the Europeans saw as a Chinese concession.

The EU is increasingly unhappy that markets in Europe are wide open to Chinese companies, while the equivalent is not the case in China.

While the EU's 15-trillion-euro ($16.9 trillion) market gives it significant economic clout, the bloc struggles to maintain unity among its 28 members on issues of foreign policy, allowing China to pursue one-on-one deals with individual countries.

Some EU powers, such as France and Germany, are growing increasingly concerned with China's Belt and Road ambitions, especially after populist-led Italy recently became the first G7 member to join the scheme.&nbsp;

In 2018, China was the second largest destination for European exports.

The Chinese trade balance is largely in surplus with the bloc at 184 billion euros, according to Brussels figures.

During the first visit of a Chinese premier to Croatia, Li on Thursday visited the site where a Chinese firm started construction on a 280-million-euro bridge on the Adriatic coast.

It is the first significant Chinese project in Croatia and funded by the EU.

"This bridge is a pilot project for both '16+1 cooperation' and cooperation between China and EU," Li said while visiting the bridge's site on Thursday.

About 1,000 businessmen including some 400 Chinese will participate at a business forum held alongside the summit in Dubrovnik.

Chinese Premier Li Keqiang will meet leaders from eastern and central Europe in Croatia on Friday to talk business, fresh from a key summit with EU where he pledged opening up his country's economy.

Chinese Premier Li Keqiang will meet leaders from eastern and central Europe in Croatia on Friday to talk business, fresh from a key summit with EU where he pledged opening up his country's economy. The coastal city of Dubrovnik is hosting the eighth annual "16+1 cooperation" -- an economic platform for Beijing's investments in 11 eastern European Union states and five Western Balkan countries. The grouping has been eyed cautiously in western European capitals as an attempt to "divide and rule" the bloc, a goal Li has denied. In an article published in Croatian dailies ahead of the gathering, the Chinese premier tried to paint the summit in a cheery light: "When we put 17 multicolour countries together we get a colour richer than a rainbow," he wrote in the article titled "Multicolour countries, spacious future". "If we build a rainbow bridge through Asia and Europe, we will achieve nice future cooperation." Eastern Europe is a core component of Beijing's vast "Belt and Road" project, valued at up to $1 trillion and aimed at constructing land and sea links to allow Chinese exports to flow westward. China has previously announced a $10 billion credit line and $3 billion investment fund for the 16-country region. So far its record on follow-through is mixed, with some major construction projects underway while other promised investments have been delayed or scrapped. For instance, building on one of 16+1's flag-ship projects -- a railway from Belgrade to Budapest -- has just started in Serbia but is held up by snags in Hungary, ultimately making scant progress five years after it was announced. 'Pilot project' This year's summit comes just three days after a top EU-China meeting, attended by Li, held as Brussels demands more balanced economic ties with a country it recently labelled as a "systemic rival". In Brussels, on Tuesday the Asian giant pledged to push further to open its economy and deepen ties with the bloc. EU Council president Donald Tusk hailed Beijing's new commitments as a "breakthrough" with both sides committed to globalisation and pursuing international rules. Brussels and Beijing in a document called for "broader and more facilitated, non-discriminatory market access," in wording the Europeans saw as a Chinese concession. The EU is increasingly unhappy that markets in Europe are wide open to Chinese companies, while the equivalent is not the case in China. While the EU's 15-trillion-euro ($16.9 trillion) market gives it significant economic clout, the bloc struggles to maintain unity among its 28 members on issues of foreign policy, allowing China to pursue one-on-one deals with individual countries. Some EU powers, such as France and Germany, are growing increasingly concerned with China's Belt and Road ambitions, especially after populist-led Italy recently became the first G7 member to join the scheme. In 2018, China was the second largest destination for European exports. The Chinese trade balance is largely in surplus with the bloc at 184 billion euros, according to Brussels figures. During the first visit of a Chinese premier to Croatia, Li on Thursday visited the site where a Chinese firm started construction on a 280-million-euro bridge on the Adriatic coast. It is the first significant Chinese project in Croatia and funded by the EU. "This bridge is a pilot project for both '16+1 cooperation' and cooperation between China and EU," Li said while visiting the bridge's site on Thursday. About 1,000 businessmen including some 400 Chinese will participate at a business forum held alongside the summit in Dubrovnik.

China courts eastern Europe after key European Union summit

<a href="https://www.wionews.com/business-economy/india-does-have-huge-potential-real-question-is-speed-of-growth-says-former-pepsico-chairperson-indra-nooyi-206985">India's infrastructure output grew</a> at 2.1 percent in February from a year earlier, government data showed on Monday.

During April-February, the output growth rate came in at 4.3 percent from the year-ago period, according to the data.

Infrastructure output, which comprises eight sectors — such as coal, crude oil and electricity — accounts for nearly 40 percent of India's industrial output.

India's infrastructure output grew at 2.1 percent in February from a year earlier, government data showed on Monday. During April-February, the output growth rate came in at 4.

India's infrastructure output grew at 2.1 percent in February from a year earlier, government data showed on Monday. During April-February, the output growth rate came in at 4.3 percent from the year-ago period, according to the data. Infrastructure output, which comprises eight sectors — such as coal, crude oil and electricity — accounts for nearly 40 percent of India's industrial output.

India's February infrastructure output grows 2.1 per cent 

The government has kept the interest rates on small savings schemes, including NSC and PPF, unchanged for the April-June quarter.

Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to carry an annual interest rate of 8 per cent, while Kisan Vikas Patra (KVP) will give a yield of 7.7 per cent and mature in 112 months.

Interest rates for small savings schemes are notified on a quarterly basis.

"The rates of interest on various small savings schemes for the first quarter of the financial year 2019-20 starting April 1, 2019, and ending on June 30, 2019, shall remain unchanged from those notified for the fourth quarter of the financial year 2018-19," the finance ministry said in a notification issued Friday.

The interest rate for the five-year Senior Citizens Savings Scheme has been retained at 8.7 per cent. The interest on the senior citizens' scheme is paid quarterly. Interest on savings deposits has been retained at 4 per cent annually.

The girl child savings scheme Sukanya Samriddhi Yojana account will offer 8.5 per cent rate during the first quarter of the next fiscal.

Term deposits of 1-5 years will fetch interest rate in the range of 7-7.8 per cent, to be paid quarterly, while the five-year recurring deposit is pegged at 7.3 per cent.&nbsp;

The government has kept the interest rates on small savings schemes, including NSC and PPF, unchanged for the April-June quarter. Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to carry an annual interest rate of 8 per cent, while Kisan Vikas Patra (KVP) will give a yield of 7.

The government has kept the interest rates on small savings schemes, including NSC and PPF, unchanged for the April-June quarter. Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to carry an annual interest rate of 8 per cent, while Kisan Vikas Patra (KVP) will give a yield of 7.7 per cent and mature in 112 months. Interest rates for small savings schemes are notified on a quarterly basis. "The rates of interest on various small savings schemes for the first quarter of the financial year 2019-20 starting April 1, 2019, and ending on June 30, 2019, shall remain unchanged from those notified for the fourth quarter of the financial year 2018-19," the finance ministry said in a notification issued Friday. The interest rate for the five-year Senior Citizens Savings Scheme has been retained at 8.7 per cent. The interest on the senior citizens' scheme is paid quarterly. Interest on savings deposits has been retained at 4 per cent annually. The girl child savings scheme Sukanya Samriddhi Yojana account will offer 8.5 per cent rate during the first quarter of the next fiscal. Term deposits of 1-5 years will fetch interest rate in the range of 7-7.8 per cent, to be paid quarterly, while the five-year recurring deposit is pegged at 7.3 per cent.

Small savings schemes: Government keeps interest rates unchanged for April-June quarter

The rupee strengthened by 15 paise to 68.81 against the US dollar in opening trade Tuesday on fresh selling of the greenback by exporters.

The weakening of the US dollar against some currencies overseas and a higher opening in the domestic equity market supported the local unit, a currency dealer said.

At the Interbank forex market, the rupee opened higher at 68.88 and strengthened further to 68.81 against the US dollar, higher by 15 paise over its previous close.

On Tuesday, the rupee ended almost flat at 68.96 per US dollar as participants preferred to wait on the sidelines to see the outcome of RBI's first-ever rupee-dollar swap auction.

Brent crude futures, the global oil benchmark, was trading 0.09 per cent up at $67.27 per barrel.

Meanwhile, the benchmark BSE Sensex recovered by 77.38 points, or 0.20 per cent, to 37,886.29 in early trade Tuesday.

Foreign portfolio investors (FPIs) bought equities worth a net Rs 150.40 crore Monday, provisional data showed.

The rupee strengthened by 15 paise to 68.81 against the US dollar in opening trade Tuesday on fresh selling of the greenback by exporters. The weakening of the US dollar against some currencies overseas and a higher opening in the domestic equity market supported the local unit, a currency dealer said.

The rupee strengthened by 15 paise to 68.81 against the US dollar in opening trade Tuesday on fresh selling of the greenback by exporters. The weakening of the US dollar against some currencies overseas and a higher opening in the domestic equity market supported the local unit, a currency dealer said. At the Interbank forex market, the rupee opened higher at 68.88 and strengthened further to 68.81 against the US dollar, higher by 15 paise over its previous close. On Tuesday, the rupee ended almost flat at 68.96 per US dollar as participants preferred to wait on the sidelines to see the outcome of RBI's first-ever rupee-dollar swap auction. Brent crude futures, the global oil benchmark, was trading 0.09 per cent up at $67.27 per barrel. Meanwhile, the benchmark BSE Sensex recovered by 77.38 points, or 0.20 per cent, to 37,886.29 in early trade Tuesday. Foreign portfolio investors (FPIs) bought equities worth a net Rs 150.40 crore Monday, provisional data showed.

Rupee rises 15 paise to 68.81 against US dollar

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