New data from the UK’s Office for National Statistics shows the country attracted the lowest level of investment among G7 nations in the latest fiscal year. With investment at just 18.6% of GDP, the UK lags behind peers in economic expansion and capital formation. Analysts warn that persistent low investment could impact growth, productivity, and competitiveness, highlighting a pressing challenge for policymakers seeking to boost the economy.

UK Investment at 18.6% of GDP, Lowest in G7

Fitch Ratings increased its growth estimate for India's current fiscal year by 7.2 per cent on Tuesday, from its March estimate of 7 per cent. According to Fitch's analysis of the global economic outlook, the upward revision is indicative of both a recovery in consumer spending and an increase in investment.<o:p></o:p>

<h2 class="MsoNormal">Strong consumer confidence<o:p></o:p></h2>

According to Fitch's most recent research, there has been a notable improvement in consumer confidence, which has led to increased expenditure and economic development. The organisation observed that data from purchasing managers' surveys indicates that the economy was still expanding at the beginning of the current fiscal year.<o:p></o:p>

"We expect the Indian economy to expand by a strong 7.2 per cent in FY24/25 (an upward revision of 0.2 pp from the March GEO)," Fitch said.<o:p></o:p>

<h2 class="MsoNormal">Rural demand and moderating inflation<o:p></o:p></h2>

Similar growth projections of 7.2 per cent were made by the Reserve Bank of India (RBI) for the current fiscal year, which it attributed to rising rural demand and lowering inflation. The RBI's and Fitch's estimates agree, which gives rise to more hope for India's economic future.<o:p></o:p>

<h2 class="MsoNormal">Future growth projections<o:p></o:p></h2>

Fitch projects growth rates of 6.2 per cent and 6.5 per cent, respectively, for the fiscal years 2026–2027. The analysis made clear that although investment will grow, it will do so more slowly than in previous quarters. Investment and consumer spending will be the main engines of growth.<o:p></o:p>

Fitch stated, "We expect growth in later years to slow and approach our medium-term trend estimate," suggesting a more subdued but continuous economic expansion going forward.<o:p></o:p>

<h2 class="MsoNormal">Monsoon season and inflation outlook<o:p></o:p></h2>

Fitch stated that while recent heatwaves represent a possible concern, regular monsoon conditions are projected to promote growth and stabilize inflation. Inflation is expected by the agency to average approximately 4.3 per cent in 2025 and 2026, and to drop to 4.5 per cent by the end of 2024.<o:p></o:p>

In addition, Fitch projects that the RBI would lower policy interest rates by 25 basis points to 6.25 per cent this year, potentially boosting the economy even further.<o:p></o:p>

The economy of India expanded by 7.8 per cent in the March quarter of the previous fiscal year (2023–24) and by 8.2 per cent overall. For the foreseeable future, this strong growth tendency is anticipated to persist, perhaps at a somewhat slower rate.<o:p></o:p>

(With inputs from Agencies)<o:p></o:p>

Fitch Ratings increased its growth estimate for India's current fiscal year by 7.2 per cent on Tuesday, from its March estimate of 7 per cent. According to Fitch's analysis of the global economic outlook, the upward revision is indicative of both a recovery in consumer spending and an increase in investment.

Fitch Ratings increased its growth estimate for India's current fiscal year by 7.2 per cent on Tuesday, from its March estimate of 7 per cent. According to Fitch's analysis of the global economic outlook, the upward revision is indicative of both a recovery in consumer spending and an increase in investment. Strong consumer confidence According to Fitch's most recent research, there has been a notable improvement in consumer confidence, which has led to increased expenditure and economic development. The organisation observed that data from purchasing managers' surveys indicates that the economy was still expanding at the beginning of the current fiscal year. "We expect the Indian economy to expand by a strong 7.2 per cent in FY24/25 (an upward revision of 0.2 pp from the March GEO)," Fitch said. Rural demand and moderating inflation Similar growth projections of 7.2 per cent were made by the Reserve Bank of India (RBI) for the current fiscal year, which it attributed to rising rural demand and lowering inflation. The RBI's and Fitch's estimates agree, which gives rise to more hope for India's economic future. Future growth projections Fitch projects growth rates of 6.2 per cent and 6.5 per cent, respectively, for the fiscal years 2026–2027. The analysis made clear that although investment will grow, it will do so more slowly than in previous quarters. Investment and consumer spending will be the main engines of growth. Fitch stated, "We expect growth in later years to slow and approach our medium-term trend estimate," suggesting a more subdued but continuous economic expansion going forward. Monsoon season and inflation outlook Fitch stated that while recent heatwaves represent a possible concern, regular monsoon conditions are projected to promote growth and stabilize inflation. Inflation is expected by the agency to average approximately 4.3 per cent in 2025 and 2026, and to drop to 4.5 per cent by the end of 2024. In addition, Fitch projects that the RBI would lower policy interest rates by 25 basis points to 6.25 per cent this year, potentially boosting the economy even further. The economy of India expanded by 7.8 per cent in the March quarter of the previous fiscal year (2023–24) and by 8.2 per cent overall. For the foreseeable future, this strong growth tendency is anticipated to persist, perhaps at a somewhat slower rate. (With inputs from Agencies)

Fitch raises India's growth forecast to 7.2 per cent for the current fiscal year

Apple&nbsp;Inc on Thursday forecast bigger problems as COVID-19 lockdowns snarl production and demand in China, the war in Ukraine dents sales and growth slows in services, which the iPhone maker sees as its engine for expansion.

Shares were down 2.2 per cent&nbsp;in late trade after executives laid out their glum outlook on a conference call. The news outweighed record profit and sales for&nbsp;Apple's fiscal second quarter, which ended in March.

Chief Financial Officer Luca Maestri warned in an interview that the war in Ukraine, which led&nbsp;Apple&nbsp;to stop sales in Russia, would cut sales more deeply in the fiscal third quarter.

Also read |&nbsp;<a href="https://www.wionews.com/technology/apple-just-released-ios154-update-with-37-new-emojis-and-netizens-are-not-pleased-471948">Apple just released iOS15.4 update with 37 new emojis, and netizens are not pleased</a>

He told analysts on the call that supply-chain issues would hurt sales in the quarter by $4 billion to $8 billion, "substantially larger" than the hit in the second quarter.

Supply problems were focused on a corridor in Shanghai, China and reflected covid&nbsp;disruptions and chip shortages, he added. The pandemic was also affecting demand in China, he said.

Chief Executive Officer Tim Cook said that almost all of the Chinese factories doing final assembly of&nbsp;Apple&nbsp;products had restarted after recent covid&nbsp;shutdowns, but the company is not forecasting when the chips shortage, mostly affecting older products, would end.

Cook said he hoped covid&nbsp;issues would be "transitory" and "get better over time."

At least one analyst said the outlook lacked clarity.

"We were all looking for just better guidance on what is really going on over there (China) ... and that didn't come out," said Louis Navellier, chief investment officer for Navellier &amp; Associates.

Kim Caughey Forrest, Chief Investment Officer at Bokeh Capital Partners, said that ongoing demand remained a big question, despite&nbsp;Apple's management of supply chain in the March quarter.

Watch |&nbsp;How netizens are reacting to Apple's 'pregnant man' emoji | Tech It Out

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/how-netizens-are-reacting-to-apples-pregnant-man-emoji-tech-it-out-473150/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Indeed, other high-profile tech companies also raised concerns. Amazon on Thursday posted a disappointing outlook as it was swamped by higher costs, sending its shares down 9 per cent&nbsp;after the close, and Intel Corp forecast a bleak quarter based on supply chain issues, and its stock fell 4 per cent.

Both companies, along with&nbsp;Apple, are part of the broader Nasdaq index, which has fallen nearly 19% this year as rising inflation drives investors elsewhere.

March quarter strength&nbsp;

Apple's overall fiscal second-quarter revenue was $97.3 billion, up 8.6 per cent&nbsp;from last year and higher than analysts' average estimate of $93.89 billion, according to Refinitiv data.

Worldwide phone sales revenue was $50.6 billion, a 5.5 per cent&nbsp;increase from a year ago, and services sales rose 17 per cent&nbsp;to $19.8 billion, both ahead of analyst average forecasts.

However, Maestri said that services growth would decelerate from the March quarter, while remaining in double-digits. He cited several factors, including more unfavorable currency exchange rates.

WATCH WION LIVE HERE

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Total profit was $25 billion, or $1.52 per share and easily topped analysts' expectations of $23.2 billion and $1.43.

Apple&nbsp;also raised its dividend 5 per cent&nbsp;to $0.23 per share and the board approved a buyback for an added $90 billion in shares.

Investors have been bracing for drops in consumer spending on tech gadgets and services as the war in Ukraine and other factors drive up the cost of oil, food and other staples.

Cook shrugged off an analyst question on inflation and consumers.

"We're monitoring that closely. But right now, our main focus, frankly speaking, is on the supply side," he said.

Asked about rising inflation, Maestri said demand, particularly for iPhones, had been higher than the company had anticipated at the start of the quarter. But he noted inflation was affecting expenses.

The pandemic, including the shift to hybrid work, has benefited other businesses.

Also read |&nbsp;<a href="https://www.wionews.com/technology/apple-is-internally-testing-new-models-of-macbook-series-report-471251">Apple is internally testing new models of MacBook series: Report</a>

Apple&nbsp;said iPad sales fell 2 per cent&nbsp;to $7.65 billion due to supply-chain constraints, while revenue from Mac computers, also facing supply-chain issues, rose 14.7 per cent&nbsp;to $10.4 billion.

Sales of wearables, home speakers and accessories rose 12 per cent&nbsp;to $8.8 billion, and was the only unit to miss Wall Street targets. Maestri said Watch and AirPods sold well, and attributed the miss to seasonal variability in demand for other accessories.

Apple&nbsp;said it now has 825 million paying subscribers across its at least seven subscription offerings, up by 40 million from 785 million last quarter. Its growth comes as rivals such as Netflix Inc report subscriber losses.

Apple Inc on Thursday forecast bigger problems as COVID-19 lockdowns snarl production and demand in China, the war in Ukraine dents sales and growth slows in services, which the iPhone maker sees as its engine for expansion.

Apple Inc on Thursday forecast bigger problems as COVID-19 lockdowns snarl production and demand in China, the war in Ukraine dents sales and growth slows in services, which the iPhone maker sees as its engine for expansion. Shares were down 2.2 per cent in late trade after executives laid out their glum outlook on a conference call. The news outweighed record profit and sales for Apple's fiscal second quarter, which ended in March. Chief Financial Officer Luca Maestri warned in an interview that the war in Ukraine, which led Apple to stop sales in Russia, would cut sales more deeply in the fiscal third quarter. Also read | Apple just released iOS15.4 update with 37 new emojis, and netizens are not pleased He told analysts on the call that supply-chain issues would hurt sales in the quarter by $4 billion to $8 billion, "substantially larger" than the hit in the second quarter. Supply problems were focused on a corridor in Shanghai, China and reflected covid disruptions and chip shortages, he added. The pandemic was also affecting demand in China, he said. Chief Executive Officer Tim Cook said that almost all of the Chinese factories doing final assembly of Apple products had restarted after recent covid shutdowns, but the company is not forecasting when the chips shortage, mostly affecting older products, would end. Cook said he hoped covid issues would be "transitory" and "get better over time." At least one analyst said the outlook lacked clarity. "We were all looking for just better guidance on what is really going on over there (China) ... and that didn't come out," said Louis Navellier, chief investment officer for Navellier & Associates. Kim Caughey Forrest, Chief Investment Officer at Bokeh Capital Partners, said that ongoing demand remained a big question, despite Apple's management of supply chain in the March quarter. Watch | How netizens are reacting to Apple's 'pregnant man' emoji | Tech It Out Indeed, other high-profile tech companies also raised concerns. Amazon on Thursday posted a disappointing outlook as it was swamped by higher costs, sending its shares down 9 per cent after the close, and Intel Corp forecast a bleak quarter based on supply chain issues, and its stock fell 4 per cent. Both companies, along with Apple, are part of the broader Nasdaq index, which has fallen nearly 19% this year as rising inflation drives investors elsewhere. March quarter strength Apple's overall fiscal second-quarter revenue was $97.3 billion, up 8.6 per cent from last year and higher than analysts' average estimate of $93.89 billion, according to Refinitiv data. Worldwide phone sales revenue was $50.6 billion, a 5.5 per cent increase from a year ago, and services sales rose 17 per cent to $19.8 billion, both ahead of analyst average forecasts. However, Maestri said that services growth would decelerate from the March quarter, while remaining in double-digits. He cited several factors, including more unfavorable currency exchange rates. WATCH WION LIVE HERE Total profit was $25 billion, or $1.52 per share and easily topped analysts' expectations of $23.2 billion and $1.43. Apple also raised its dividend 5 per cent to $0.23 per share and the board approved a buyback for an added $90 billion in shares. Investors have been bracing for drops in consumer spending on tech gadgets and services as the war in Ukraine and other factors drive up the cost of oil, food and other staples. Cook shrugged off an analyst question on inflation and consumers. "We're monitoring that closely. But right now, our main focus, frankly speaking, is on the supply side," he said. Asked about rising inflation, Maestri said demand, particularly for iPhones, had been higher than the company had anticipated at the start of the quarter. But he noted inflation was affecting expenses. The pandemic, including the shift to hybrid work, has benefited other businesses. Also read | Apple is internally testing new models of MacBook series: Report Apple said iPad sales fell 2 per cent to $7.65 billion due to supply-chain constraints, while revenue from Mac computers, also facing supply-chain issues, rose 14.7 per cent to $10.4 billion. Sales of wearables, home speakers and accessories rose 12 per cent to $8.8 billion, and was the only unit to miss Wall Street targets. Maestri said Watch and AirPods sold well, and attributed the miss to seasonal variability in demand for other accessories. Apple said it now has 825 million paying subscribers across its at least seven subscription offerings, up by 40 million from 785 million last quarter. Its growth comes as rivals such as Netflix Inc report subscriber losses.

Apple sees bigger supply problems after strong start to year

International Monetary Fund (IMF) on Tuesday raised its growth forecast for Indian economy by 100 basis points to 12.5 per cent for fiscal year 2021-22. India is the only country expected to register a double-digit growth this fiscal.

India's growth projection raised to 12.5% for FY22 by IMF

The world bank has released its outlook for 2020 and there is some bad news for Indian economy. In the ongoing fiscal year India's growth is expected to shrink to 5%. Lack of credit has been sighted the reason behind the shrink. #WION #IndianEconomy #India #FiscalYear

World Bank on Indian Economy: India's growth expected to shrink to 5% in 2020

The International Monetary Fund (IMF) has cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand.

The growth is expected to rise to 7.2 per cent points in FY21, down by the projected growth rate of 7.5 in the earlier report.

"India's economy is set to grow at 7.0 per cent in 2019, picking up to 7.2 per cent in 2020. The downward revision of 0.3 percentage point for both years reflects a weaker-than-expected outlook for domestic demand," the International Monetary Fund (IMF) said in its World Economic Update.

Similarly, the global growth forecast for FY20 has been cut down by 0.1 per cent points to 3.2. This is the fourth consecutive time that the global growth forecast has been lowered.

Among the factors cited by the report for the lower growth forecast includes increased trade and technology tensions between the United States and China, prolonged uncertainty on Brexit, and weaker-than-expected activity in emerging market and developing economies.

"Among emerging market and developing economies, the first-quarter GDP in China was stronger than forecast, but indicators for the second quarter suggest a weakening of activity. Elsewhere in emerging Asia, as well as in Latin America, activity has disappointed," the report read.

The International Monetary Fund (IMF) has cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand.

The International Monetary Fund (IMF) has cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand. The growth is expected to rise to 7.2 per cent points in FY21, down by the projected growth rate of 7.5 in the earlier report. "India's economy is set to grow at 7.0 per cent in 2019, picking up to 7.2 per cent in 2020. The downward revision of 0.3 percentage point for both years reflects a weaker-than-expected outlook for domestic demand," the International Monetary Fund (IMF) said in its World Economic Update. Similarly, the global growth forecast for FY20 has been cut down by 0.1 per cent points to 3.2. This is the fourth consecutive time that the global growth forecast has been lowered. Among the factors cited by the report for the lower growth forecast includes increased trade and technology tensions between the United States and China, prolonged uncertainty on Brexit, and weaker-than-expected activity in emerging market and developing economies. "Among emerging market and developing economies, the first-quarter GDP in China was stronger than forecast, but indicators for the second quarter suggest a weakening of activity. Elsewhere in emerging Asia, as well as in Latin America, activity has disappointed," the report read.

International Monetary Fund cuts India's GDP growth forecast to 7% for fiscal year 2019-20

Coca-Cola's leading bottler Coca Cola HBC AG said on Monday it expects annual revenue growth over the next six years at around 6 per cent, while pointing to margin growth below estimates for the fiscal year 2020.

The company, which sells Coca-Cola drinks in 28 countries, said it expects comparable earnings before income tax (EBIT) margin of 11% by 2020, below analysts' average estimate of 11.2%, according to company-compiled consensus.

Coca Cola HBC forecast comparable EBIT margin to rise by 20-40 basis points on an average beyond fiscal year 2020.

The company said its average annual revenue growth rate up to 2025 is expected to be in the range of 5%-6% on a currency-neutral basis.

The forecast comes ahead of an investor event in London later on Monday where the company will present its strategy to investors and analysts.

The FTSE-100 company's shares were down 1.1% at 1143 GMT.

Coca-Cola's leading bottler Coca Cola HBC AG said on Monday it expects annual revenue growth over the next six years at around 6 per cent, while pointing to margin growth below estimates for the fiscal year 2020.

Coca-Cola's leading bottler Coca Cola HBC AG said on Monday it expects annual revenue growth over the next six years at around 6 per cent, while pointing to margin growth below estimates for the fiscal year 2020. The company, which sells Coca-Cola drinks in 28 countries, said it expects comparable earnings before income tax (EBIT) margin of 11% by 2020, below analysts' average estimate of 11.2%, according to company-compiled consensus. Coca Cola HBC forecast comparable EBIT margin to rise by 20-40 basis points on an average beyond fiscal year 2020. The company said its average annual revenue growth rate up to 2025 is expected to be in the range of 5%-6% on a currency-neutral basis. The forecast comes ahead of an investor event in London later on Monday where the company will present its strategy to investors and analysts. The FTSE-100 company's shares were down 1.1% at 1143 GMT.

Coca Cola HBC targets up to 6% annual revenue growth for next six years

<a href="http://www.wionews.com/india-news/india-to-increase-public-health-spending-to-25-per-cent-of-gdp-says-pm-narendra-modi-183405">The direct tax-to-GDP ratio </a>of 5.98 per cent achieved during 2017-18 fiscal is the best in the last 10 years, the finance ministry said Wednesday. 
It was 5.57 per cent in 2016-17 and 5.47 per cent in 2015-16.

The ministry said the larger purpose of demonetisation was to move India from a tax non-compliant society to a compliant society and the impact of note ban has been felt on the collection of personal income tax.

In its 2018 review said, the ministry said: "There is a constant growth in direct tax-GDP ratio over last three years and the ratio of 5.98 per cent in Fiscal Year 2017-18 is the best DT-GDP ratio in last 10 years".

It further said there is a growth of over 80 per cent in the number of returns filed in the last four financial years from 3.79 crores in 2013-14 to 6.85 crore in 2017-18.

The number of individuals filing a return of income has also increased by about 65 per cent during this period from 3.31 crore in 2013-14 to 5.44 crore in 2017-18, the ministry added.

It also said there has been a continuous increase in the amount of income declared in the returns filed by all categories of taxpayers over the last three assessment years (AYs).

"For AY (assessment year) 2014-15, corresponding to FY (financial year) 2013-14 (base year), the return filers had declared gross total income of Rs 26.92 lakh crore, which has increased by 67 per cent to Rs 44.88 lakh crore for AY 2017-18, showing higher level of compliance resulting from various legislative and administrative measures taken by the government, including effective enforcement measures against tax evasion," it added.

Refunds amounting to Rs 1.23 lakh crore have been issued during the April-November 2018 period, which is 20.8 per cent higher than refunds issued during the corresponding period in the preceding year.

Growth rate for corporate income tax (CIT) and personal income tax (PIT) stood at 17.7 per cent and 18.3 per cent, respectively.

Demonetisation led to formalisation of the economy and was a blow to the black money, the ministry added.

"Demonetisation compelled holders of cash to deposit the same in the banks. The enormity of cash deposited and identified with the owner resulted in suspected 17.42 lakh account holders from whom the response has been received online through non-invasive method," it said.

The ministry said larger deposits in banks improved lending capacity for the banks. "A lot of this money was diverted to the mutual funds for further investments. It became a part of the formal system," it added.

It further said there is a growth of over 80 per cent in the number of returns filed in the last four financial years from 3.79 crores in 2013-14 to 6.85 crore in 2017-18.

The direct tax-to-GDP ratio of 5.98 per cent achieved during 2017-18 fiscal is the best in the last 10 years, the finance ministry said Wednesday. It was 5.57 per cent in 2016-17 and 5.47 per cent in 2015-16. The ministry said the larger purpose of demonetisation was to move India from a tax non-compliant society to a compliant society and the impact of note ban has been felt on the collection of personal income tax. In its 2018 review said, the ministry said: "There is a constant growth in direct tax-GDP ratio over last three years and the ratio of 5.98 per cent in Fiscal Year 2017-18 is the best DT-GDP ratio in last 10 years". It further said there is a growth of over 80 per cent in the number of returns filed in the last four financial years from 3.79 crores in 2013-14 to 6.85 crore in 2017-18. The number of individuals filing a return of income has also increased by about 65 per cent during this period from 3.31 crore in 2013-14 to 5.44 crore in 2017-18, the ministry added. It also said there has been a continuous increase in the amount of income declared in the returns filed by all categories of taxpayers over the last three assessment years (AYs). "For AY (assessment year) 2014-15, corresponding to FY (financial year) 2013-14 (base year), the return filers had declared gross total income of Rs 26.92 lakh crore, which has increased by 67 per cent to Rs 44.88 lakh crore for AY 2017-18, showing higher level of compliance resulting from various legislative and administrative measures taken by the government, including effective enforcement measures against tax evasion," it added. Refunds amounting to Rs 1.23 lakh crore have been issued during the April-November 2018 period, which is 20.8 per cent higher than refunds issued during the corresponding period in the preceding year. Growth rate for corporate income tax (CIT) and personal income tax (PIT) stood at 17.7 per cent and 18.3 per cent, respectively. Demonetisation led to formalisation of the economy and was a blow to the black money, the ministry added. "Demonetisation compelled holders of cash to deposit the same in the banks. The enormity of cash deposited and identified with the owner resulted in suspected 17.42 lakh account holders from whom the response has been received online through non-invasive method," it said. The ministry said larger deposits in banks improved lending capacity for the banks. "A lot of this money was diverted to the mutual funds for further investments. It became a part of the formal system," it added.

Direct tax-GDP ratio of 5.98% during Fiscal Year 2018 best in 10 years: Finance Ministry

The Pakistan government has decided to cut by 10 per cent the non-salary current budget of the civilian setup as part of an austerity drive to solve the cash-strapped nation's economic woes,&nbsp;according to a media report.

The Express Tribune reported that the move will help save nearly Rs 10 billion in the remaining period of the fiscal year (2018-19) but would not address core fiscal problems.

The Pakistan Tehreek-e-Insaf (PTI) government has also decided to continue with a ban imposed on the creation of new posts excepts where the posts are required to be created under development projects, the report said. &nbsp; &nbsp;

The Ministry of Finance has issued an office memorandum to give effect to the austerity measures for the fiscal year 2018-19. Effectively, the cut in the current non-salary expenditure will be on the budget allocations for the period from December 2018 to June 2019, the report said.&nbsp;

"In consideration of fiscal constraints and keeping in view the austerity drive of the present government and to save public money, it has been decided to effect a saving of 10 per cent in current expenditures," said the ministry of finance office memorandum.&nbsp;

The 10 per cent cut will not be applicable to employees' related expenses, their retirement benefits, subsidies, transfers, and civil works. The military budget has also not been slashed.

The PTI government is implementing tight fiscal and monetary policies. The State Bank of Pakistan has already downward revised the economic growth rate projections to 4 per cent for this fiscal year as against 5.8 per cent growth rate in the last fiscal year.

The total downward revised annual budget for running the civil government is Rs 460 billion for the fiscal year 2018-19. Nearly 70 per cent expenditures have been exempted from the budget cut, which would reduce the net benefit to not more than Rs 10 billion, according to an official of the Ministry of Finance.

The total non-salary expenditures are Rs 180 billion and some components like transfers and civil works are exempted from the cut. The total budget for this fiscal year is Rs 5.3 trillion. Out of this, an amount of Rs 1.1 trillion has been allocated for defence and Rs 1.842 trillion for servicing of the public debt.&nbsp;

Prime Minister Imran Khan, after his swearing on August 18, moved into a modest three-bedroom house of his military secretary along with two servants.

He had announced that he would not be staying in the sprawling PM House which has a staff of 524 and a fleet of 80 vehicles, keeping his pledge to cut down the expenditure of the cash-strapped government.&nbsp;

The Pakistan government has decided to cut by 10 per cent the non-salary current budget of the civilian setup as part of an austerity drive to solve the cash-strapped nation's economic woes, according to a media report.

The Pakistan government has decided to cut by 10 per cent the non-salary current budget of the civilian setup as part of an austerity drive to solve the cash-strapped nation's economic woes, according to a media report. The Express Tribune reported that the move will help save nearly Rs 10 billion in the remaining period of the fiscal year (2018-19) but would not address core fiscal problems. The Pakistan Tehreek-e-Insaf (PTI) government has also decided to continue with a ban imposed on the creation of new posts excepts where the posts are required to be created under development projects, the report said. The Ministry of Finance has issued an office memorandum to give effect to the austerity measures for the fiscal year 2018-19. Effectively, the cut in the current non-salary expenditure will be on the budget allocations for the period from December 2018 to June 2019, the report said. "In consideration of fiscal constraints and keeping in view the austerity drive of the present government and to save public money, it has been decided to effect a saving of 10 per cent in current expenditures," said the ministry of finance office memorandum. The 10 per cent cut will not be applicable to employees' related expenses, their retirement benefits, subsidies, transfers, and civil works. The military budget has also not been slashed. The PTI government is implementing tight fiscal and monetary policies. The State Bank of Pakistan has already downward revised the economic growth rate projections to 4 per cent for this fiscal year as against 5.8 per cent growth rate in the last fiscal year. The total downward revised annual budget for running the civil government is Rs 460 billion for the fiscal year 2018-19. Nearly 70 per cent expenditures have been exempted from the budget cut, which would reduce the net benefit to not more than Rs 10 billion, according to an official of the Ministry of Finance. The total non-salary expenditures are Rs 180 billion and some components like transfers and civil works are exempted from the cut. The total budget for this fiscal year is Rs 5.3 trillion. Out of this, an amount of Rs 1.1 trillion has been allocated for defence and Rs 1.842 trillion for servicing of the public debt. Prime Minister Imran Khan, after his swearing on August 18, moved into a modest three-bedroom house of his military secretary along with two servants. He had announced that he would not be staying in the sprawling PM House which has a staff of 524 and a fleet of 80 vehicles, keeping his pledge to cut down the expenditure of the cash-strapped government.

Pakistan slashes non-salary budget by 10%

The Reserve Bank of India kept its policy rates on hold for the fourth straight meeting on Thursday and retained its "neutral" stance even as inflationary pressures have eased more than expected.

The RBI kept its policy repo rate unchanged at 6.00 percent, its lowest since November 2010, as unanimously expected by 61 respondents in a Reuters poll.

The reverse repo rate also remained unchanged at 5.75 percent. 
Five of six members on the monetary policy committee voted for a hold, while one wanted a hike in the repo rate.

Inflation concerns have eased substantially following a crash in vegetable prices which is expected to keep price pressures soft for the next few months.

However, oil prices remain a risk, with India importing about 80 percent of its crude requirement.

Bonds rose after the RBI`s statement, while the rupee firmed and stocks extended early gains.

The 10-year benchmark bond yield fell to 7.19 percent from 7.28 percent before the announcement, while the rupee was trading at 64.95 to the dollar from 65.04 before. The main market index was up 1.8 percent.

INFLATION EASING, GROWTH

The RBI projected economic growth of 7.4 percent for the current fiscal year that began on April 1.

It also lowered its April-September inflation projection to 4.7-5.1 percent from February`s 5.1-5.6 percent.

After hitting a 17-month high in December, retail inflation eased for the second straight month in February and by more than expected, to a four-month low of 4.44 percent. But it was still higher than the central bank's medium-term target of 4 percent.

That has prompted most market watchers to push back their forecasts for a rate hike to early 2019, from earlier estimates of the second half of this year.

While inflation fears have eased in the short-term, the RBI sounded cautious and opted to wait for more data instead of giving a clear indication of its policy path.

"The MPC reiterates its commitment to achieving the medium-term target for headline inflation of 4 percent on a durable basis," the RBI said in a statement.

The RBI is also mindful of the pace of India`s economic recovery, after a loan-fraud scandal worth over $2 billion at the country`s second-largest state lender Punjab National Bank.

Greater regulatory scrutiny in the wake of the scandal could make banks more wary of lending, slowing down business activity after India`s economy grew 7.2 percent in the October-December, its fastest in five quarters.&nbsp;

RBI has kept the repo rate unchanged at 6% in the first monetary policy review of the current fiscal year, amid a gradual recovery in growth and easing inflation

The Reserve Bank of India kept its policy rates on hold for the fourth straight meeting on Thursday and retained its "neutral" stance even as inflationary pressures have eased more than expected. The RBI kept its policy repo rate unchanged at 6.00 percent, its lowest since November 2010, as unanimously expected by 61 respondents in a Reuters poll. The reverse repo rate also remained unchanged at 5.75 percent. Five of six members on the monetary policy committee voted for a hold, while one wanted a hike in the repo rate. Inflation concerns have eased substantially following a crash in vegetable prices which is expected to keep price pressures soft for the next few months. However, oil prices remain a risk, with India importing about 80 percent of its crude requirement. Bonds rose after the RBI`s statement, while the rupee firmed and stocks extended early gains. The 10-year benchmark bond yield fell to 7.19 percent from 7.28 percent before the announcement, while the rupee was trading at 64.95 to the dollar from 65.04 before. The main market index was up 1.8 percent. INFLATION EASING, GROWTH The RBI projected economic growth of 7.4 percent for the current fiscal year that began on April 1. It also lowered its April-September inflation projection to 4.7-5.1 percent from February`s 5.1-5.6 percent. After hitting a 17-month high in December, retail inflation eased for the second straight month in February and by more than expected, to a four-month low of 4.44 percent. But it was still higher than the central bank's medium-term target of 4 percent. That has prompted most market watchers to push back their forecasts for a rate hike to early 2019, from earlier estimates of the second half of this year. While inflation fears have eased in the short-term, the RBI sounded cautious and opted to wait for more data instead of giving a clear indication of its policy path. "The MPC reiterates its commitment to achieving the medium-term target for headline inflation of 4 percent on a durable basis," the RBI said in a statement. The RBI is also mindful of the pace of India`s economic recovery, after a loan-fraud scandal worth over $2 billion at the country`s second-largest state lender Punjab National Bank. Greater regulatory scrutiny in the wake of the scandal could make banks more wary of lending, slowing down business activity after India`s economy grew 7.2 percent in the October-December, its fastest in five quarters.

RBI keeps repo rate unchanged at 6% in first bi-monthly monetary policy for 2018-19

India&rsquo;s economy needs to grow 8% and higher a year for the next three decades to join the ranks of middle-income countries, which would require major reforms in the land, labour and financial sectors, the World Bank said on Wednesday.&nbsp;

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If that did happen, it would raise the income of at least 50% of India&rsquo;s 1.3 billion people to sustain consumption expenditure of $10 a day based on the purchasing power parity of the global middle class.

The government estimates India&rsquo;s per capita income could touch 86,689 rupees ($1,337.4), or $3.7 a day, in the current fiscal year ending this month.

Asia&rsquo;s third-largest economy, which grew at a rapid pace of 8.8 percent a year from 2004 to 2008, is expected to grow 6.7 percent this financial year, said Junaid Ahmad, country director of the World Bank while releasing a report.

He said the bank planned to lend $20 billion to $25 billion to India in the next five years, mainly for investment in infrastructure, human resources and natural resources management, to support inclusive economic growth.

&ldquo;India&rsquo;s long-term growth has become steady, stable, diversified and resilient,&rdquo; Ahmad said adding it now needed to undertake reforms for efficient use of scarce land, water and financial resources to achieve higher growth.

The world&rsquo;s seventh-largest economy needs to accelerate growth to create jobs for a million young people joining the labour force every month.

Prime Minister Narendra Modi, who faces a general election next year, has pushed up spending on rural infrastructure and jobs-creating sectors to bolster his popularity.

Last November, India jumped into 100th place on the World Bank&rsquo;s ranking of countries by Ease of Doing Business, for the first time, up about 30 places, driven by reforms in access to credit, power supplies and protection of minority investors.

The World Bank projected the $2.5 trillion economy could grow at 7.3 percent and 7.5% in the next two years, helped by tax reforms and benign global growth.&nbsp;

India needs to push land, labour and financial sector reforms and improve the competitiveness of exports to achieve higher growth, Poonam Gupta, lead author of the World Bank report said.

Referring to the slowdown in bank credit following a surge in bad loans in banks, estimated at nearly $150 billion, the World Bank suggested consolidation of state banks and more space for private banks.

&ldquo;Durable revival in private investments and growth would be crucial for India,&rdquo; Gupta said.

&ldquo;The hard-earned fiscal discipline must be protected.&rdquo;

The government estimates India’s per capita income could touch Rs 86,689 ($1,337.4), or $3.7 a day, in the current fiscal year ending this month

India’s economy needs to grow 8% and higher a year for the next three decades to join the ranks of middle-income countries, which would require major reforms in the land, labour and financial sectors, the World Bank said on Wednesday. × If that did happen, it would raise the income of at least 50% of India’s 1.3 billion people to sustain consumption expenditure of $10 a day based on the purchasing power parity of the global middle class. The government estimates India’s per capita income could touch 86,689 rupees ($1,337.4), or $3.7 a day, in the current fiscal year ending this month. Asia’s third-largest economy, which grew at a rapid pace of 8.8 percent a year from 2004 to 2008, is expected to grow 6.7 percent this financial year, said Junaid Ahmad, country director of the World Bank while releasing a report. He said the bank planned to lend $20 billion to $25 billion to India in the next five years, mainly for investment in infrastructure, human resources and natural resources management, to support inclusive economic growth. “India’s long-term growth has become steady, stable, diversified and resilient,” Ahmad said adding it now needed to undertake reforms for efficient use of scarce land, water and financial resources to achieve higher growth. The world’s seventh-largest economy needs to accelerate growth to create jobs for a million young people joining the labour force every month. Prime Minister Narendra Modi, who faces a general election next year, has pushed up spending on rural infrastructure and jobs-creating sectors to bolster his popularity. Last November, India jumped into 100th place on the World Bank’s ranking of countries by Ease of Doing Business, for the first time, up about 30 places, driven by reforms in access to credit, power supplies and protection of minority investors. The World Bank projected the $2.5 trillion economy could grow at 7.3 percent and 7.5% in the next two years, helped by tax reforms and benign global growth. India needs to push land, labour and financial sector reforms and improve the competitiveness of exports to achieve higher growth, Poonam Gupta, lead author of the World Bank report said. Referring to the slowdown in bank credit following a surge in bad loans in banks, estimated at nearly $150 billion, the World Bank suggested consolidation of state banks and more space for private banks. “Durable revival in private investments and growth would be crucial for India,” Gupta said. “The hard-earned fiscal discipline must be protected.”

India needs 8% growth for 30 years to join middle-income countries: World Bank

Markets nursed losses for the fourth straight session today as upbeat second-quarter GDP numbers failed to dispel concerns over a widening fiscal deficit.

The BSE benchmark Sensex dived 316 points to close below the 33,000-mark, while the broader Nifty declined 104.75 points to 10,121.80.

It was a forgettable week for both the key indices, with the Sensex recording a fall of 846.30 points, or 2.51 per cent and the NSE Nifty losing 267.90 points, or 2.57 per cent.

&quot;Despite data pointing to an improvement in the macro- economic environment, participants remained cautious and chose to sell stocks in the latter half of the trading day,&quot; said Karthikraj Lakshmanan, Senior Fund Manager, Equities, BNP Paribas Mutual Fund.

The 30-share benchmark, after scaling a high of 33,300.81 in early deals, slipped into the negative zone to touch 32,797.78, before settling at 32,832.94, down 316.41 points, or 0.95 per cent.

This was its weakest closing since November 15, when it had finished at 32,760.44.

The 50-issue NSE Nifty too cracked the 10,200-mark and hit a low of 10,108.55 before finishing 104.75 points, or 1.02 per cent down at 10,121.80.

Reversing a five-quarter slide in Gross Domestic Product (GDP) growth, the economy bounced back from a three-year low to expand by 6.3 per cent in July-September as manufacturing revved up and businesses adjusted to the new GST tax regime, data released after market hours yesterday showed.

However, participants remained risk-averse as India&#39;s fiscal deficit at the end of October hit 96.1 per cent of the budget estimate for 2017-18, mainly due to lower revenue realisation and rise in expenditure.

Meanwhile, foreign portfolio investors sold shares worth net Rs 1,500.76 crore, while domestic institutional investors (DIIs) bought shares to the tune of Rs 1,202.57 crore yesterday, as per provisional data.

Small and mid-cap indices fell 1.16 per cent and 0.95 per cent in today&#39;s session, respectively.

The session saw buying in select auto stocks such as Maruti Suzuki, TVS Motor and Ashok Leyland, buoyed by encouraging sales data for November.

Among Sensex constituents, Adani Ports suffered the most by diving 3 per cent, followed by Bajaj Auto 2.99 per cent despite the company reporting a 21 per cent rise in total sales in November.

Other big losers were Bharti Airtel (2.74 per cent), Sun Pharma (2.59 per cent), SBI (2.47 per cent), Dr Reddy&#39;s (2.44 per cent), Tata Steel (2.08 per cent), HUL (1.71 per cent), Infosys (1.69 per cent), Power Grid (1.51 per cent), Coal India (1.43 per cent), RIL (1.38 per cent), Tata Motors (1.36 per cent), HDFC LTD (1.11 per cent) and Hero MotoCorp (0.97 per cent).

However, Kotak Bank rose 0.23 per cent followed by NTPC 0.14 per cent.

Among BSE sectoral indices, realty dropped by 1.99 per cent followed by metal 1.75 per cent, infrastructure 1.63 per cent, oil &amp; gas 1.47 per cent, PSU 1.46 per cent, teck 1.43 per cent, power 1.38 per cent, IT 1.29 per cent and auto 0.99 per cent.

Globally, other Asian markets traded mixed after investors shifted nervously as US President Donald Trump&#39;s much-hyped tax-cut plans hung in the balance after a plan to push them through hit unexpected hurdles.

Hong Kong&#39;s Hang Seng finished 0.35 per cent lower, while Korea fell 0.04 per cent. Japan&#39;s Nikkei, however, rose 0.41 per cent and Shanghai Composite Index edged up 0.01 per cent.

European shares were down in their early deals. Frankfurt&#39;s DAX was down 0.77 per cent and Paris CAC 40 lost 0.76 per cent. London&#39;s FTSE too fell 0.18 per cent.

Markets nursed losses for the fourth straight session today as upbeat second-quarter GDP numbers failed to dispel concerns over a widening fiscal deficit

Markets nursed losses for the fourth straight session today as upbeat second-quarter GDP numbers failed to dispel concerns over a widening fiscal deficit. The BSE benchmark Sensex dived 316 points to close below the 33,000-mark, while the broader Nifty declined 104.75 points to 10,121.80. It was a forgettable week for both the key indices, with the Sensex recording a fall of 846.30 points, or 2.51 per cent and the NSE Nifty losing 267.90 points, or 2.57 per cent. "Despite data pointing to an improvement in the macro- economic environment, participants remained cautious and chose to sell stocks in the latter half of the trading day," said Karthikraj Lakshmanan, Senior Fund Manager, Equities, BNP Paribas Mutual Fund. The 30-share benchmark, after scaling a high of 33,300.81 in early deals, slipped into the negative zone to touch 32,797.78, before settling at 32,832.94, down 316.41 points, or 0.95 per cent. This was its weakest closing since November 15, when it had finished at 32,760.44. The 50-issue NSE Nifty too cracked the 10,200-mark and hit a low of 10,108.55 before finishing 104.75 points, or 1.02 per cent down at 10,121.80. Reversing a five-quarter slide in Gross Domestic Product (GDP) growth, the economy bounced back from a three-year low to expand by 6.3 per cent in July-September as manufacturing revved up and businesses adjusted to the new GST tax regime, data released after market hours yesterday showed. However, participants remained risk-averse as India's fiscal deficit at the end of October hit 96.1 per cent of the budget estimate for 2017-18, mainly due to lower revenue realisation and rise in expenditure. Meanwhile, foreign portfolio investors sold shares worth net Rs 1,500.76 crore, while domestic institutional investors (DIIs) bought shares to the tune of Rs 1,202.57 crore yesterday, as per provisional data. Small and mid-cap indices fell 1.16 per cent and 0.95 per cent in today's session, respectively. The session saw buying in select auto stocks such as Maruti Suzuki, TVS Motor and Ashok Leyland, buoyed by encouraging sales data for November. Among Sensex constituents, Adani Ports suffered the most by diving 3 per cent, followed by Bajaj Auto 2.99 per cent despite the company reporting a 21 per cent rise in total sales in November. Other big losers were Bharti Airtel (2.74 per cent), Sun Pharma (2.59 per cent), SBI (2.47 per cent), Dr Reddy's (2.44 per cent), Tata Steel (2.08 per cent), HUL (1.71 per cent), Infosys (1.69 per cent), Power Grid (1.51 per cent), Coal India (1.43 per cent), RIL (1.38 per cent), Tata Motors (1.36 per cent), HDFC LTD (1.11 per cent) and Hero MotoCorp (0.97 per cent). However, Kotak Bank rose 0.23 per cent followed by NTPC 0.14 per cent. Among BSE sectoral indices, realty dropped by 1.99 per cent followed by metal 1.75 per cent, infrastructure 1.63 per cent, oil & gas 1.47 per cent, PSU 1.46 per cent, teck 1.43 per cent, power 1.38 per cent, IT 1.29 per cent and auto 0.99 per cent. Globally, other Asian markets traded mixed after investors shifted nervously as US President Donald Trump's much-hyped tax-cut plans hung in the balance after a plan to push them through hit unexpected hurdles. Hong Kong's Hang Seng finished 0.35 per cent lower, while Korea fell 0.04 per cent. Japan's Nikkei, however, rose 0.41 per cent and Shanghai Composite Index edged up 0.01 per cent. European shares were down in their early deals. Frankfurt's DAX was down 0.77 per cent and Paris CAC 40 lost 0.76 per cent. London's FTSE too fell 0.18 per cent.

Sensex shrugs off GDP rebound, sinks 316 points

Lower taxes and higher public expenditure could widen budget deficit in 2017-18, but steps taken by the government to broaden the tax base and improve spending efficiency would help in narrowing it going forward, US-based rating agency Moody&#39;s said.

In an interview to PTI, Moody&#39;s Investors Service V-P (Sovereign Risk Group) William Foster said the agency believes that the government&#39;s commitment to fiscal consolidation remains and sustained growth would help it reduce the debt burden.

Moody&#39;s had last week raised India&#39;s sovereign rating for the first time in over 13 years, saying growth prospects have improved with continued progress on economic and institutional reforms. The rating was upgraded to Baa2 from Baa3 and rating outlook was changed to stable from positive.

Foster said the upgrade reflects the expectation that continued progress on economic and institutional reforms will enhance India&#39;s high growth potential and its large and stable financing base for government debt and will likely contribute to a gradual decline in the general government debt burden over the medium term.

India&#39;s debt-to-GDP ratio stood at 68.6 per cent and a government-appointed panel has recommended lowering it to 60 per cent by 2023.

&quot;We forecast the general government budget deficit at 6.5 per cent of GDP this fiscal year, similar to the last two fiscal years. Lower government revenues than planned in the Budget and somewhat higher government spending could lead to a deficit somewhat wider than targeted.

&quot;However, over time, measures aimed at broadening the tax base and improving the efficiency of government spending will contribute to a gradual narrowing of the deficit. Together with robust and sustained nominal GDP growth, this would be conducive to a gradual decline in the government debt burden,&quot; Foster said.

Foster, however, added that a material deterioration in fiscal metrics and the outlook for general government fiscal consolidation would put negative pressure on the rating.

General budget deficit includes expenditure incurred and revenue earned by both the Centre and states. &quot;The rating could also face downward pressure if the health of the banking system deteriorated significantly or external vulnerability increased sharply,&quot; he added.

The central government, in Budget 2017-18, had set a target of 3.2 per cent for fiscal deficit, which is the difference between the Centre&#39;s revenue and expenditure, for this fiscal. It would be brought down to 3 per cent next fiscal.

The finance ministry is scheduled to review the deficit target for the current financial year next month as it reassesses revenue mop-up from the recently launched Goods and Services Tax (GST) and PSU disinvestment programme.

The deficit has already touched 91.3 per cent of the target in the first half of the fiscal.

Projecting GDP growth to moderate to 6.7 per cent in the current fiscal, from 7.1 per cent last year, Moody&#39;s said while GST and demonetisation have undermined growth over the near term, growth will rise to 7.5 per cent in 2018-19 as the disruption fades.

According to Foster, the stable outlook denotes that Moody&#39;s does not expect a rating change in the foreseeable future. &quot;There are both positive and negative risks to the economy and India&#39;s credit profile,&quot; Foster added.

His assessment is a material strengthening in fiscal metrics, combined with a strong and durable recovery of the investment cycle, probably supported by significant economic and institutional reforms would be credit positive.

&quot;In particular, greater expectation of a sizeable and sustained reduction in the general government debt burden, through increased government revenues combined with a reduction in expenditures, would put positive pressure on the rating. Implementation of key pending reforms, including land and labour reforms, could put additional upward pressure on the rating,&quot; Foster said.&nbsp;

Moody's had last week raised India's sovereign rating for the first time in over 13 years, saying growth prospects have improved with continued progress on economic and institutional reforms

Lower taxes and higher public expenditure could widen budget deficit in 2017-18, but steps taken by the government to broaden the tax base and improve spending efficiency would help in narrowing it going forward, US-based rating agency Moody's said. In an interview to PTI, Moody's Investors Service V-P (Sovereign Risk Group) William Foster said the agency believes that the government's commitment to fiscal consolidation remains and sustained growth would help it reduce the debt burden. Moody's had last week raised India's sovereign rating for the first time in over 13 years, saying growth prospects have improved with continued progress on economic and institutional reforms. The rating was upgraded to Baa2 from Baa3 and rating outlook was changed to stable from positive. Foster said the upgrade reflects the expectation that continued progress on economic and institutional reforms will enhance India's high growth potential and its large and stable financing base for government debt and will likely contribute to a gradual decline in the general government debt burden over the medium term. India's debt-to-GDP ratio stood at 68.6 per cent and a government-appointed panel has recommended lowering it to 60 per cent by 2023. "We forecast the general government budget deficit at 6.5 per cent of GDP this fiscal year, similar to the last two fiscal years. Lower government revenues than planned in the Budget and somewhat higher government spending could lead to a deficit somewhat wider than targeted. "However, over time, measures aimed at broadening the tax base and improving the efficiency of government spending will contribute to a gradual narrowing of the deficit. Together with robust and sustained nominal GDP growth, this would be conducive to a gradual decline in the government debt burden," Foster said. Foster, however, added that a material deterioration in fiscal metrics and the outlook for general government fiscal consolidation would put negative pressure on the rating. General budget deficit includes expenditure incurred and revenue earned by both the Centre and states. "The rating could also face downward pressure if the health of the banking system deteriorated significantly or external vulnerability increased sharply," he added. The central government, in Budget 2017-18, had set a target of 3.2 per cent for fiscal deficit, which is the difference between the Centre's revenue and expenditure, for this fiscal. It would be brought down to 3 per cent next fiscal. The finance ministry is scheduled to review the deficit target for the current financial year next month as it reassesses revenue mop-up from the recently launched Goods and Services Tax (GST) and PSU disinvestment programme. The deficit has already touched 91.3 per cent of the target in the first half of the fiscal. Projecting GDP growth to moderate to 6.7 per cent in the current fiscal, from 7.1 per cent last year, Moody's said while GST and demonetisation have undermined growth over the near term, growth will rise to 7.5 per cent in 2018-19 as the disruption fades. According to Foster, the stable outlook denotes that Moody's does not expect a rating change in the foreseeable future. "There are both positive and negative risks to the economy and India's credit profile," Foster added. His assessment is a material strengthening in fiscal metrics, combined with a strong and durable recovery of the investment cycle, probably supported by significant economic and institutional reforms would be credit positive. "In particular, greater expectation of a sizeable and sustained reduction in the general government debt burden, through increased government revenues combined with a reduction in expenditures, would put positive pressure on the rating. Implementation of key pending reforms, including land and labour reforms, could put additional upward pressure on the rating," Foster said.

India's budget deficit may rise in FY18, but will improve in years ahead: Moody's

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