Prime Minister Narendra Modi's government has completed four years. During this time, his government launched several initiatives which garnered laurels as well as created a lot of buzz across the country.

As his party gears up for elections next year, here is a look at his pet schemes and how they have performed in these four years:

Goods and Services Tax

This was one of the most crucial reform introduced by the Modi government. Though the plan was in the works for more than a decade, the GST (as it is popularly called) was finally implemented in July, 2017. The GST replaced many indirect taxes (as many as 14) that previously existed and streamlined tax rates across the country under one umbrella. The implementation of GST altered the country's indirect tax regime for good.

The GST was meant to introduce single tax slab across the country, but after numerous discussions and political compulsions, there are now four slabs. However, it has reduced the number of taxes while moving goods within the country, or availing services at different locations. Initially, it resulted in drop in tax collection, but after nearly a year of GST, the numbers have gone up.

Demonetisation

On November 8, 2016, Prime Minister Narendra Modi took the nation by surprise when he announced the discontinuation of existing high-values currency notes - Rs 500 and 1000 - which was termed as demonetisation. THe decision was taken essentially to wipe out all the black money, curb fake currency and terror financing.

This prompted people to embrace digital payment channels and reduced their dependence on cash. Post-demonetisation, the number of tax returns filed by individuals increased 25.3 per cent and 9.1 million taxpayers have been added to the tax net.

Demonetisation, like GST, was put to challenge both by opposition parties and people who were shocked at huge amounts of cash disappearing from the system. Many assembly elections and bypolls were fought solely on these two economic decisions of the BJP, and the party paid by losing some of these polls. The main criticism was ATM machines going dry and long queues outside, but the upheaval was contained a few months later. Government announced a slew of measures to make people's lives easier.

Demonetisation, the gamble which government played, directly hit sectors like real estate where presence of black money was highest. The growth rate, which had plunged initially, is back now and compliance among the business community has increased.

Make in India

Just a few months into his term, PM Modi launched the "Make in India" scheme to facilitate domestic investment, boost in-house research & development (R&D) and create skill-based jobs by developing manufacturing in the country and to make India a global manufacturing power.

A "Start-up India" programme was also launched with the objective of making India the start-up capital of the world. Modi promised an increase in manufacturing's share of the country's GDP from 16 per cent to 25 per cent by 2022 and to create 100 million additional jobs by that year.

Aadhaar linking

The Modi government introduced a policy to link PAN card, voter ID, LPG connection card, ration card and mobile number to a 12-digit unique number, known as Aadhaar. It was introduced on March 26, 2016.

Modi government projected and Parliament enacted the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act. Today, Aadhaar has become India's most credible identity currency, and is used while filing taxes, and buying financial products like mutual funds.

PM Modi said that the unique identification number will work as a "big weapon" in the fight against benami property. "Aadhaar has a played a big role in ensuring that ration at proper rates, scholarships, pension and government subsidies reached the poor," he said.

Swachh Bharat Abhiyan (Clean India Campaign)

Swachh Bharat Abhiyan was launched on October 2, 2014, by PM Modi with hopes to increase the reach of sanitation facilities to every family. Under the scheme, toilets, solid and liquid waste disposal systems, cleanliness, and safe and adequate drinking water supply will be ensured in every village of the country so that they can become open-defecation free by October 2, 2019. Modi nominated notable personalities from film industry, sports, media, business and other celebrities to promote the initiative.

The mission's biggest component, the Swachh Bharat Mission-Gramin or SBM-G, which has the vital mission of constructing 10 crore toilets in India's villages, has been underfunded since 2014, research report shows. The gap between money the SBM-G needs and what it actually gets has extended from Rs 3,500 crore in 2016-17 to an astounding Rs 15,000 crore in the coming financial year.

Since the Modi government came to power there have been significant economic changes in the country. His government has taken the rightful steps towards a stable political and macroeconomic environment, redefining the tax system, as well as battled corruption by introducing demonetisation. These policies have helped India’s economy outperform most emerging markets in per capita GDP growth, and improved the country's business environment, as inflation has dropped.

India's economic growth collapsed in the quarters following demonetisation. However, it turned around with the December quarter clocking 7.2 per cent growth In the country's GDP. India's ranking in the World Bank's "Ease of doing business report" also moved from 130 to 100 this year.

Another noteworthy accomplishment of the Indian economy over the past few years has been the extraordinary growth in foreign flows, in particular the foreign direct investment (FDI).

But then it also led to some downfalls. Bad debts - now at more than Rs 9 trillion - linger profoundly not just on government-controlled banks but also on its economic well-being (e.g. the 13,000 crore PNB fraud). The oil prices have been steadily increasing over the last couple of months.

The agriculture sector has taken a hit with farmers' income dropping in real terms, primarily on account of food price deflation and the breakdown in the cash-based rural economy after demonetisation. In fact, if one compares India's real GDP growth to expansion of its farm sector, the latter has steadily lagged the former since 2012.

GDP growth is still above five per cent, but it has slowed down sharply from past rates of eight and nine per cent. And even the above-five per cent GDP growth is not creating jobs fast enough. In 2014, during its election campaign, the government had promised to create 10 million jobs a year. However, only less than a million jobs were created in the four years it has been in power.

GDP growth is still above five per cent, but it has slowed down sharply from past rates of eight and nine per cent.

Prime Minister Narendra Modi's government has completed four years. During this time, his government launched several initiatives which garnered laurels as well as created a lot of buzz across the country. As his party gears up for elections next year, here is a look at his pet schemes and how they have performed in these four years: Goods and Services Tax This was one of the most crucial reform introduced by the Modi government. Though the plan was in the works for more than a decade, the GST (as it is popularly called) was finally implemented in July, 2017. The GST replaced many indirect taxes (as many as 14) that previously existed and streamlined tax rates across the country under one umbrella. The implementation of GST altered the country's indirect tax regime for good. The GST was meant to introduce single tax slab across the country, but after numerous discussions and political compulsions, there are now four slabs. However, it has reduced the number of taxes while moving goods within the country, or availing services at different locations. Initially, it resulted in drop in tax collection, but after nearly a year of GST, the numbers have gone up. Demonetisation On November 8, 2016, Prime Minister Narendra Modi took the nation by surprise when he announced the discontinuation of existing high-values currency notes - Rs 500 and 1000 - which was termed as demonetisation. THe decision was taken essentially to wipe out all the black money, curb fake currency and terror financing. This prompted people to embrace digital payment channels and reduced their dependence on cash. Post-demonetisation, the number of tax returns filed by individuals increased 25.3 per cent and 9.1 million taxpayers have been added to the tax net. Demonetisation, like GST, was put to challenge both by opposition parties and people who were shocked at huge amounts of cash disappearing from the system. Many assembly elections and bypolls were fought solely on these two economic decisions of the BJP, and the party paid by losing some of these polls. The main criticism was ATM machines going dry and long queues outside, but the upheaval was contained a few months later. Government announced a slew of measures to make people's lives easier. Demonetisation, the gamble which government played, directly hit sectors like real estate where presence of black money was highest. The growth rate, which had plunged initially, is back now and compliance among the business community has increased. Make in India Just a few months into his term, PM Modi launched the "Make in India" scheme to facilitate domestic investment, boost in-house research & development (R&D) and create skill-based jobs by developing manufacturing in the country and to make India a global manufacturing power. A "Start-up India" programme was also launched with the objective of making India the start-up capital of the world. Modi promised an increase in manufacturing's share of the country's GDP from 16 per cent to 25 per cent by 2022 and to create 100 million additional jobs by that year. Aadhaar linking The Modi government introduced a policy to link PAN card, voter ID, LPG connection card, ration card and mobile number to a 12-digit unique number, known as Aadhaar. It was introduced on March 26, 2016. Modi government projected and Parliament enacted the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act. Today, Aadhaar has become India's most credible identity currency, and is used while filing taxes, and buying financial products like mutual funds. PM Modi said that the unique identification number will work as a "big weapon" in the fight against benami property. "Aadhaar has a played a big role in ensuring that ration at proper rates, scholarships, pension and government subsidies reached the poor," he said. Swachh Bharat Abhiyan (Clean India Campaign) Swachh Bharat Abhiyan was launched on October 2, 2014, by PM Modi with hopes to increase the reach of sanitation facilities to every family. Under the scheme, toilets, solid and liquid waste disposal systems, cleanliness, and safe and adequate drinking water supply will be ensured in every village of the country so that they can become open-defecation free by October 2, 2019. Modi nominated notable personalities from film industry, sports, media, business and other celebrities to promote the initiative. The mission's biggest component, the Swachh Bharat Mission-Gramin or SBM-G, which has the vital mission of constructing 10 crore toilets in India's villages, has been underfunded since 2014, research report shows. The gap between money the SBM-G needs and what it actually gets has extended from Rs 3,500 crore in 2016-17 to an astounding Rs 15,000 crore in the coming financial year. Since the Modi government came to power there have been significant economic changes in the country. His government has taken the rightful steps towards a stable political and macroeconomic environment, redefining the tax system, as well as battled corruption by introducing demonetisation. These policies have helped India’s economy outperform most emerging markets in per capita GDP growth, and improved the country's business environment, as inflation has dropped. India's economic growth collapsed in the quarters following demonetisation. However, it turned around with the December quarter clocking 7.2 per cent growth In the country's GDP. India's ranking in the World Bank's "Ease of doing business report" also moved from 130 to 100 this year. Another noteworthy accomplishment of the Indian economy over the past few years has been the extraordinary growth in foreign flows, in particular the foreign direct investment (FDI). But then it also led to some downfalls. Bad debts - now at more than Rs 9 trillion - linger profoundly not just on government-controlled banks but also on its economic well-being (e.g. the 13,000 crore PNB fraud). The oil prices have been steadily increasing over the last couple of months. The agriculture sector has taken a hit with farmers' income dropping in real terms, primarily on account of food price deflation and the breakdown in the cash-based rural economy after demonetisation. In fact, if one compares India's real GDP growth to expansion of its farm sector, the latter has steadily lagged the former since 2012. GDP growth is still above five per cent, but it has slowed down sharply from past rates of eight and nine per cent. And even the above-five per cent GDP growth is not creating jobs fast enough. In 2014, during its election campaign, the government had promised to create 10 million jobs a year. However, only less than a million jobs were created in the four years it has been in power.

Four years of Modi government: 5 schemes and how they performed

The World Bank today projected India&#39;s GDP growth at 7.3 per cent for the next financial year and accelerate further to 7.5 per cent in 2019-20.

The World Bank&#39;s biannual publication, India Development Update: India&#39;s Growth Story, expects the economy to clock a growth rate of 6.7 per cent in the current fiscal ending March 31.

The report, however, observed that a growth of over 8 per cent will require &quot;continued reform and a widening of their scope&quot; aimed at resolving issues related to credit and investment and enhancing the competitiveness of exports.

&quot;The Indian economy is likely to recover from the impact of demonetisation and the GST, and growth should revert slowly to a level consistent with its proximate factors -- that is, to about 7.5 per cent a year,&quot; the report said.

In November 2016, the government had scrapped high-value currency notes of Rs 500 and Rs 1,000 in a bid to check black money, among others.

Later, India implemented its biggest indirect tax reform -- Goods and Services Tax (GST).

Both of these initiatives had impacted the economic activities in the country in short run.

India&#39;s economic growth had slipped to a three year low of 5.7 per cent in April-June quarter of the current fiscal, though it recovered in the subsequent quarters.

The economy is expected to grow at 6.6 per cent in the current fiscal ending March 31, as per the second advanced estimates of the Central Statistics Office (CSO), compared to 7.1 per cent in 2016-17. The earlier estimate was 6.5 per cent.

The Economic Survey tabled in Parliament has projected a growth rate of 7 to 7.5 per cent in the 2018-19 financial year.

The World Bank report further said that accelerating the growth rate will also require continued integration into global economy.

It pitches for making growth more inclusive and enhancing the effectiveness of the Indian public sector.&nbsp;

The World Bank's biannual publication, India Development Update: India's Growth Story, expects the economy to clock a growth rate of 6.7 per cent in the current fiscal ending March 31.

The World Bank today projected India's GDP growth at 7.3 per cent for the next financial year and accelerate further to 7.5 per cent in 2019-20. The World Bank's biannual publication, India Development Update: India's Growth Story, expects the economy to clock a growth rate of 6.7 per cent in the current fiscal ending March 31. The report, however, observed that a growth of over 8 per cent will require "continued reform and a widening of their scope" aimed at resolving issues related to credit and investment and enhancing the competitiveness of exports. "The Indian economy is likely to recover from the impact of demonetisation and the GST, and growth should revert slowly to a level consistent with its proximate factors -- that is, to about 7.5 per cent a year," the report said. In November 2016, the government had scrapped high-value currency notes of Rs 500 and Rs 1,000 in a bid to check black money, among others. Later, India implemented its biggest indirect tax reform -- Goods and Services Tax (GST). Both of these initiatives had impacted the economic activities in the country in short run. India's economic growth had slipped to a three year low of 5.7 per cent in April-June quarter of the current fiscal, though it recovered in the subsequent quarters. The economy is expected to grow at 6.6 per cent in the current fiscal ending March 31, as per the second advanced estimates of the Central Statistics Office (CSO), compared to 7.1 per cent in 2016-17. The earlier estimate was 6.5 per cent. The Economic Survey tabled in Parliament has projected a growth rate of 7 to 7.5 per cent in the 2018-19 financial year. The World Bank report further said that accelerating the growth rate will also require continued integration into global economy. It pitches for making growth more inclusive and enhancing the effectiveness of the Indian public sector.

World Bank projects India's FY19 GDP growth at 7.3 per cent

After falling to a three-year low in the June quarter, India&#39;s GDP growth rose to 7.2 per cent in the December quarter (Q3), data from the central statistics office showed Wednesday.

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The Indian economy grew at 6.3% in the September quarter after falling to a three-year low of 5.7% in the June quarter.&nbsp;

The figures will be a big boost for the Narendra Modi-led government as several critics were not convinced that the country&#39;s economy is moving on a sustainable path.&nbsp;

But the consistent economic growth indicates that the economy has moved on from the twin policy shocks of demonetisation in November 2016 and GST rollout on 1 July 2018.

As of now, the growth expected for the year 2018 is estimated to be at 6.6 per cent.&nbsp;

The International Monetary Fund (IMF) recently said that it expected India&rsquo;s economic growth to reach 7.4 percent and 7.8 percent in 2018 and 2019, respectively.

The economy grew at 6.3% in the September quarter

After falling to a three-year low in the June quarter, India's GDP growth rose to 7.2 per cent in the December quarter (Q3), data from the central statistics office showed Wednesday. P Chidambaram has maintained that neither he nor any of his family member or relations have ever had or have its stake, shareholding or directorship of Advantage Strategic Consulting Pvt Ltd or INX Media Pvt Ltd at any point of time: Randeep Surjewala #KartiChidambaram pic.twitter.com/ALcdzHzCyr — ANI (@ANI) February 28, 2018 × The Indian economy grew at 6.3% in the September quarter after falling to a three-year low of 5.7% in the June quarter. The figures will be a big boost for the Narendra Modi-led government as several critics were not convinced that the country's economy is moving on a sustainable path. But the consistent economic growth indicates that the economy has moved on from the twin policy shocks of demonetisation in November 2016 and GST rollout on 1 July 2018. As of now, the growth expected for the year 2018 is estimated to be at 6.6 per cent. The International Monetary Fund (IMF) recently said that it expected India’s economic growth to reach 7.4 percent and 7.8 percent in 2018 and 2019, respectively.

India's GDP growth rises to 7.2% in December quarter

India might have regained the status of the world&#39;s fastest-growing major economy in the October-December quarter, driven by higher government spending and a pick-up in manufacturing and services.

The median in a Reuters poll on annual growth in the December quarter was 6.9 percent, the best pace in 2017. Forecasts ranged from 6.4 percent to 7.3 percent.

The government will release GDP data on Wednesday around 1200 GMT.

If there was 6.9 percent growth, that would top China&#39;s 6.8 percent annual pace for October-December. The last time India had a faster growth rate was in the final three months of 2016.

India&#39;s expected improvement on its 6.3 percent growth in July-September comes as its manufacturing and services sector have been overcoming teething troubles rooted in the bumpy launch of a national sales tax in July.

Also read:&nbsp;<a href="http://www.wionews.com/business-economy/india-to-grow-at-76-in-2018-moodys-34306" target="_blank">India to grow at 7.6% in 2018, says Moody&#39;s</a>

&quot;After muted activity until September, signs of a pick-up in economic growth are starting to appear,&quot; said Aditi Nayar, principal economist at ICRA, the India arm of rating agency Moody&#39;s.

A strong gross domestic product reading could lift domestic shares, and boost the rupee, which has been Asia&#39;s second weakest currency this year, losing about 1.6 percent against the dollar.

The GDP data could help Prime Minister Narendra Modi, who faces criticism over mounting bad loans of state banks and a $1.77 billion fraud at state lender Punjab National Bank &lt;PNB.NS&gt;, the biggest in the country&#39;s banking history.

Last week, Modi told industrialists that his government, which got a &quot;twin balance sheet&quot; problem resulting from bad debt in banks and many businesses, was determined to put the economy back on a higher growth trajectory.

Modi is trying to accelerate growth through higher state spending including 2.1 trillion rupees ($32.36 billion) for recapitalisation of state banks, beset with mounting bad loans of nearly $148 billion.

He has stepped up spending on infrastructure and welfare projects to boost growth ahead of national elections in 2019. This has widened the fiscal deficit for the current fiscal year, ending in March, to 3.5 percent of GDP, instead of the earlier projected 3.2 percent.

In November, Moody&#39;s raised India&#39;s investment grade rating one notch, the rating agency&#39;s first upgrade in nearly 14 years.

NASCENT RECOVERY

India jumped 30 places to break into the top 100 for the first time in World Bank&#39;s Doing Business report 2018.

The International Monetary Fund forecasts India&#39;s economic growth could reach 7.4 percent in 2018 and 7.8 percent in 2019, overtaking rates projected for China of 6.5 percent and 6.4 percent, respectively.

The world&#39;s seventh largest economy, which grew at more than 9 percent a year from 2005 through 2008, is still far from firing on all cylinders. Domestic demand and private investment remain weak.

Urjit Patel, governor of the Reserve Bank of India (RBI), earlier this month said the economic recovery was at a nascent stage and called for a cautious approach. The central bank has kept its key rate unchanged since a 25 basis points cut in August.

India&#39;s investment rate fell close to 30 percent of GDP in 2017 from a peak of 40 percent in 2011.

New Delhi is worried that higher global crude oil prices pose a major risk to its efforts to regain growth momentum as this could hit domestic investment and push up consumer price inflation.

A Reuters poll said India would grow at 6.9 percent, which would top China's 6.8 percent annual pace for October-December

India might have regained the status of the world's fastest-growing major economy in the October-December quarter, driven by higher government spending and a pick-up in manufacturing and services. The median in a Reuters poll on annual growth in the December quarter was 6.9 percent, the best pace in 2017. Forecasts ranged from 6.4 percent to 7.3 percent. The government will release GDP data on Wednesday around 1200 GMT. If there was 6.9 percent growth, that would top China's 6.8 percent annual pace for October-December. The last time India had a faster growth rate was in the final three months of 2016. India's expected improvement on its 6.3 percent growth in July-September comes as its manufacturing and services sector have been overcoming teething troubles rooted in the bumpy launch of a national sales tax in July. Also read: India to grow at 7.6% in 2018, says Moody's "After muted activity until September, signs of a pick-up in economic growth are starting to appear," said Aditi Nayar, principal economist at ICRA, the India arm of rating agency Moody's. A strong gross domestic product reading could lift domestic shares, and boost the rupee, which has been Asia's second weakest currency this year, losing about 1.6 percent against the dollar. The GDP data could help Prime Minister Narendra Modi, who faces criticism over mounting bad loans of state banks and a $1.77 billion fraud at state lender Punjab National Bank <PNB.NS>, the biggest in the country's banking history. Last week, Modi told industrialists that his government, which got a "twin balance sheet" problem resulting from bad debt in banks and many businesses, was determined to put the economy back on a higher growth trajectory. Modi is trying to accelerate growth through higher state spending including 2.1 trillion rupees ($32.36 billion) for recapitalisation of state banks, beset with mounting bad loans of nearly $148 billion. He has stepped up spending on infrastructure and welfare projects to boost growth ahead of national elections in 2019. This has widened the fiscal deficit for the current fiscal year, ending in March, to 3.5 percent of GDP, instead of the earlier projected 3.2 percent. In November, Moody's raised India's investment grade rating one notch, the rating agency's first upgrade in nearly 14 years. NASCENT RECOVERY India jumped 30 places to break into the top 100 for the first time in World Bank's Doing Business report 2018. The International Monetary Fund forecasts India's economic growth could reach 7.4 percent in 2018 and 7.8 percent in 2019, overtaking rates projected for China of 6.5 percent and 6.4 percent, respectively. The world's seventh largest economy, which grew at more than 9 percent a year from 2005 through 2008, is still far from firing on all cylinders. Domestic demand and private investment remain weak. Urjit Patel, governor of the Reserve Bank of India (RBI), earlier this month said the economic recovery was at a nascent stage and called for a cautious approach. The central bank has kept its key rate unchanged since a 25 basis points cut in August. India's investment rate fell close to 30 percent of GDP in 2017 from a peak of 40 percent in 2011. New Delhi is worried that higher global crude oil prices pose a major risk to its efforts to regain growth momentum as this could hit domestic investment and push up consumer price inflation.

India may have grown faster than China in October-December quarter

India&#39;s economy grew at its fastest pace in a year in the October-December quarter as consumers, businesses and the government stepped up spending, a Reuters poll predicted.

This suggests that disruptions from a shock ban on high-value currency notes in November 2016 and the chaotic launch of a goods and services tax (GST) in July are fading.

Gross domestic product grew 6.9 percent in the October-December quarter from a year earlier, according to the poll of more than 35 economists, taken over the past week.

If the data, due at 1200 GMT on Feb. 28, matches the consensus, the quarter will have the best growth rate in 2017.

In July-September, the economy grew 6.3 percent annually, a return to a faster growth trajectory after five consecutive quarters of slowdown.

In the latest quarter, &quot;government spending was stronger and private consumption demand was robust as well, as seen in strong growth in auto sales,&quot; said Abhishek Upadhyay, economist at ICICI Securities PD.

&quot;Recent buoyancy in indicators such as cement output also points to recovery in segments such as construction, and real estate that were hit most from demonetization.&quot;

Still, growth in the world&#39;s seventh largest economy is far from the near-double digits pace recorded during the years before the financial crisis.

What has also weighed on the economy is exports, which took a hit last year from an appreciating rupee, which strengthened 6.5 percent against the dollar in 2017.

While down around 1 percent this year, the rupee is not expected to weaken significantly, according to a separate Reuters poll of foreign exchange strategists.

CONCERN ON BANKING

Economists in the latest poll were also concerned about the increase in non-performing assets of state-run banks, and said if they are not handled effectively it would hurt economic activity.

Adding to those worries, the second biggest state lender, Punjab National Bank this month revealed a loan fraud that&#39;s the biggest in India&#39;s banking history.

The fraud has cast a shadow over the workings of state-run lenders, already reeling from accumulated bad loans accumulated that are higher than those of banks in most major economies.

While stress on bank balance sheets is a drag and the clean-up exercise &quot;may still take time&quot;, it&#39;s likely that economic growth should get better, Upadhyay said.

The poll also predicted India&#39;s gross value-added (GVA) - the growth measure that the government prefers - increased 6.6 percent from a year earlier in October-December from a year earlier, compared to 6.1 percent in the prior three months.

That should provide some relief to the Reserve Bank of India which is performing a delicate balancing act of monitoring inflation and nurturing growth.

Retail inflation eased in January after a 17-month spike in December, but was still above the 4 percent medium-term target of the central bank.

While the RBI kept rates on hold at its Feb. 7 meeting, the minutes showed monetary committee members concerned about the rising inflation rate.

The Reuters poll suggests disruptions from demonetisation and GST are are fading

India's economy grew at its fastest pace in a year in the October-December quarter as consumers, businesses and the government stepped up spending, a Reuters poll predicted. This suggests that disruptions from a shock ban on high-value currency notes in November 2016 and the chaotic launch of a goods and services tax (GST) in July are fading. Gross domestic product grew 6.9 percent in the October-December quarter from a year earlier, according to the poll of more than 35 economists, taken over the past week. If the data, due at 1200 GMT on Feb. 28, matches the consensus, the quarter will have the best growth rate in 2017. In July-September, the economy grew 6.3 percent annually, a return to a faster growth trajectory after five consecutive quarters of slowdown. In the latest quarter, "government spending was stronger and private consumption demand was robust as well, as seen in strong growth in auto sales," said Abhishek Upadhyay, economist at ICICI Securities PD. "Recent buoyancy in indicators such as cement output also points to recovery in segments such as construction, and real estate that were hit most from demonetization." Still, growth in the world's seventh largest economy is far from the near-double digits pace recorded during the years before the financial crisis. What has also weighed on the economy is exports, which took a hit last year from an appreciating rupee, which strengthened 6.5 percent against the dollar in 2017. While down around 1 percent this year, the rupee is not expected to weaken significantly, according to a separate Reuters poll of foreign exchange strategists. CONCERN ON BANKING Economists in the latest poll were also concerned about the increase in non-performing assets of state-run banks, and said if they are not handled effectively it would hurt economic activity. Adding to those worries, the second biggest state lender, Punjab National Bank this month revealed a loan fraud that's the biggest in India's banking history. The fraud has cast a shadow over the workings of state-run lenders, already reeling from accumulated bad loans accumulated that are higher than those of banks in most major economies. While stress on bank balance sheets is a drag and the clean-up exercise "may still take time", it's likely that economic growth should get better, Upadhyay said. The poll also predicted India's gross value-added (GVA) - the growth measure that the government prefers - increased 6.6 percent from a year earlier in October-December from a year earlier, compared to 6.1 percent in the prior three months. That should provide some relief to the Reserve Bank of India which is performing a delicate balancing act of monitoring inflation and nurturing growth. Retail inflation eased in January after a 17-month spike in December, but was still above the 4 percent medium-term target of the central bank. While the RBI kept rates on hold at its Feb. 7 meeting, the minutes showed monetary committee members concerned about the rising inflation rate.

GDP growth in October-December likely to be 6.9%, best in 2017: Poll

India Inc today pitched for focus on rapidly improving human capital and agricultural productivity to sustain the economic growth trajectory, while cheering the GDP growth projection of 7-7.5 per cent in 2018-19 laid out by the Economic Survey.

&quot;The Survey provides new ideas for building a positive momentum for growth in the coming year and for faster growth thereafter. It delineates a long-term vision for powering the emergence of a New India which is both transformative and socially inclusive,&quot; CII Director General Chandrajit Banerjee said.

The Survey has rightly alluded that the chief areas of policy focus in the medium term are employment, especially for women; educated and healthy labour force; and raising farm productivity, he added. 
&quot;We expect that the Budget will address some of these issues,&quot; he said.

Industry body Assocham said while the Insolvency resolution mechanism has begun in the right earnest, a big vigil needs to be kept and the banks must be given additional capital at the earliest, observing that &quot;until the issue of NPA (non performing assets) is fixed, growth may elude us&quot;.

&quot;Economic Survey for 2017-18 has brought out areas of concern such as rising non-performing assets of the public sector banks and has underlined the need, rightly so, for putting maximum emphasis on creating new jobs, agriculture and education,&quot; Assocham President Sandeep Jajodia said.

He said there is a need to keep a vigil on inflation, particularly in the wake of rising fuel prices and the government must remain steadfast on the path of reforms.

PHD Chamber of Commerce President Anil Khaitan said the focus of the government in the medium term on employment, education and agriculture is encouraging and would foster a sustainable economic environment, going forward.

The Survey tabled in Parliament by Finance Minister Arun Jaitley pegs India to regain fastest growing major economy tag, with the country&#39;s GDP estimated to grow between 7-7.5 per cent in 2018-19. It also estimates the GDP to grow 6.75 per cent in the current fiscal.

Experts and economists too shared their opinion on the Survey.

&quot;Although an uptick in 2018-19 growth has not been ruled out, it is more likely towards the lower end of the range. Evolving domestic and global conditions can swing growth in any direction,&quot; said Devendra Kumar Pant, Chief Economist at India Ratings &amp; Research.

According to Anis Chakravarty, Chief Economist, Deloitte India, with rapidly changing demography and incoming automation, manual jobs may become redundant, and this creates a need to generate opportunities in services domain.

Especially important will be an increased private sector participation as bulk is carried on via government agencies, he said.

Manish Agarwal, Leader?Infrastructure at PwC India said: &quot;The growth in manufacturing is a big positive. Credit offtake, growth in cement, steel etc point to pick-up in capacity creation also. As the pace picks up, the industrial corridors could see faster development.&quot;

India Inc today pitched for focus on rapidly improving human capital and agricultural productivity to sustain the economic growth trajectory, while cheering the GDP growth projection of 7-7.5 per cent in 2018-19 laid out by the Economic Survey

India Inc today pitched for focus on rapidly improving human capital and agricultural productivity to sustain the economic growth trajectory, while cheering the GDP growth projection of 7-7.5 per cent in 2018-19 laid out by the Economic Survey. "The Survey provides new ideas for building a positive momentum for growth in the coming year and for faster growth thereafter. It delineates a long-term vision for powering the emergence of a New India which is both transformative and socially inclusive," CII Director General Chandrajit Banerjee said. The Survey has rightly alluded that the chief areas of policy focus in the medium term are employment, especially for women; educated and healthy labour force; and raising farm productivity, he added. "We expect that the Budget will address some of these issues," he said. Industry body Assocham said while the Insolvency resolution mechanism has begun in the right earnest, a big vigil needs to be kept and the banks must be given additional capital at the earliest, observing that "until the issue of NPA (non performing assets) is fixed, growth may elude us". "Economic Survey for 2017-18 has brought out areas of concern such as rising non-performing assets of the public sector banks and has underlined the need, rightly so, for putting maximum emphasis on creating new jobs, agriculture and education," Assocham President Sandeep Jajodia said. He said there is a need to keep a vigil on inflation, particularly in the wake of rising fuel prices and the government must remain steadfast on the path of reforms. PHD Chamber of Commerce President Anil Khaitan said the focus of the government in the medium term on employment, education and agriculture is encouraging and would foster a sustainable economic environment, going forward. The Survey tabled in Parliament by Finance Minister Arun Jaitley pegs India to regain fastest growing major economy tag, with the country's GDP estimated to grow between 7-7.5 per cent in 2018-19. It also estimates the GDP to grow 6.75 per cent in the current fiscal. Experts and economists too shared their opinion on the Survey. "Although an uptick in 2018-19 growth has not been ruled out, it is more likely towards the lower end of the range. Evolving domestic and global conditions can swing growth in any direction," said Devendra Kumar Pant, Chief Economist at India Ratings & Research. According to Anis Chakravarty, Chief Economist, Deloitte India, with rapidly changing demography and incoming automation, manual jobs may become redundant, and this creates a need to generate opportunities in services domain. Especially important will be an increased private sector participation as bulk is carried on via government agencies, he said. Manish Agarwal, Leader?Infrastructure at PwC India said: "The growth in manufacturing is a big positive. Credit offtake, growth in cement, steel etc point to pick-up in capacity creation also. As the pace picks up, the industrial corridors could see faster development."

India Inc cheers Economic Survey

New Delhi, Jan 2 (PTI) India&#39;s growth rate is expected to accelerate over the coming year and is likely to improve further to 7.6 per cent by 2019-20 as key sectors would revive from disruptions related to the implementation of GST and demonetisation, says an HSBC report.

According to the global financial services major, GDP growth in India is expected to accelerate to 7.0 per cent in 2018-19 from 6.5 per cent in this fiscal, shaking off the disruptions from demonetisation and introduction of the Goods and Services Tax (GST).

&quot;India&#39;s growth story has a two-part narrative. The first is a slowdown and gradual recovery in the short run, likely over FY18 and FY19, as key sectors revive from disruptions related to the implementation of GST,&quot; HSBC said in a research note.

The subsequent narrative is of brighter growth prospects in the medium term (FY20 and beyond), when growth is expected to reap the benefits of recently undertaken structural reforms, it added.

HSBC expects India&#39;s growth at around 6.5 per cent in 2017-18, 7.0 per cent in 2018-19 and 7.6 in 2019-20, respectively.

The report further said the recovery in India&#39;s GDP growth will likely be relatively gradual, preventing price pressures from rebounding and allowing the Reserve Bank of India to keep rates on hold for the time being.

According to HSBC, once the impact of transient factors wanes, inflation will settle around RBI&#39;s 4 per cent target.

&quot;We expect inflation to average 3.4 per cent over FY18 (ending the year in March at 4.3 per cent),&quot; it said adding &quot;accordingly, we forecast RBI will keep the repo rate on hold, as the rate-cutting cycle of the central bank looks set to have ended, with most inflation risks tilted to the upside&quot;.

The Reserve Bank in its fifth bi-monthly review of this fiscal kept repo rate unchanged at 6 per cent and reverse repo at 5.75 per cent while raising the inflation forecast for the remainder of 2017-18 to 4.3-4.7 per cent. PTI 
&nbsp;

GDP growth in India is expected to accelerate to 7.0% in 2018-19 from 6.5% in this fiscal, the global financial services major said

New Delhi, Jan 2 (PTI) India's growth rate is expected to accelerate over the coming year and is likely to improve further to 7.6 per cent by 2019-20 as key sectors would revive from disruptions related to the implementation of GST and demonetisation, says an HSBC report. According to the global financial services major, GDP growth in India is expected to accelerate to 7.0 per cent in 2018-19 from 6.5 per cent in this fiscal, shaking off the disruptions from demonetisation and introduction of the Goods and Services Tax (GST). "India's growth story has a two-part narrative. The first is a slowdown and gradual recovery in the short run, likely over FY18 and FY19, as key sectors revive from disruptions related to the implementation of GST," HSBC said in a research note. The subsequent narrative is of brighter growth prospects in the medium term (FY20 and beyond), when growth is expected to reap the benefits of recently undertaken structural reforms, it added. HSBC expects India's growth at around 6.5 per cent in 2017-18, 7.0 per cent in 2018-19 and 7.6 in 2019-20, respectively. The report further said the recovery in India's GDP growth will likely be relatively gradual, preventing price pressures from rebounding and allowing the Reserve Bank of India to keep rates on hold for the time being. According to HSBC, once the impact of transient factors wanes, inflation will settle around RBI's 4 per cent target. "We expect inflation to average 3.4 per cent over FY18 (ending the year in March at 4.3 per cent)," it said adding "accordingly, we forecast RBI will keep the repo rate on hold, as the rate-cutting cycle of the central bank looks set to have ended, with most inflation risks tilted to the upside". The Reserve Bank in its fifth bi-monthly review of this fiscal kept repo rate unchanged at 6 per cent and reverse repo at 5.75 per cent while raising the inflation forecast for the remainder of 2017-18 to 4.3-4.7 per cent. PTI

GDP growth in India to accelerate over coming year: HSBC

Days after India&#39;s economy showed signs of recovery, Fitch Ratings today cut the country&#39;s GDP growth forecast for the current fiscal to 6.7 per cent from the earlier projected 6.9 per cent, saying the rebound was weaker than expected.

It also cut GDP growth forecast for 2018-19 fiscal year to 7.3 per cent from 7.4 per cent predicted in its September Global Economic Outlook (GEO).

Fitch, however, expects GDP growth to pick up in the next two years on back of gradual implementation of the structural reform agenda and higher real disposable income.

&quot;The Indian economy picked up in 3Q17 (July-September), with GDP growing by 6.3 per cent year-on-year, up from 5.7 per cent in 2Q17,&#39;&#39; Fitch report stated.

&quot;However, the rebound was weaker than we expected, and we have reduced our growth forecast for the fiscal year to end- March 2018 (FY18) to 6.7 per cent from 6.9 per cent in the September GEO,&quot; Fitch said in its latest GEO.

The US-based ratings agency said growth has &quot;repeatedly disappointed&quot; in recent quarters, partly because of one-off factors including the demonetisation programme of November 2016 and disruptions related to the implementation of the Goods and Services Tax (GST) in July 2017.

Reversing a five-quarter slide in GDP growth, Indian 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.

The GDP growth in the second quarter of 2017-18 compares to 5.7 per cent in April-June, the lowest growth rate since the Narendra Modi government took office, and 7.5 per cent in the September quarter of the previous fiscal.

Stating that it expects GDP growth to pick up in the next two years, Fitch said gradual implementation of the structural reform agenda is expected to contribute to higher growth, as will higher real disposable income.

&quot;Recent moves by the government should help support the growth outlook and enhance business confidence,&quot; it said.

The two-year bank recapitalisation plan of Rs 2.1 lakh crore, or 1.4 per cent of GDP, is likely to help address the capital shortages that have hindered the banks&#39; lending capacity.

Also, the Rs 6.9 lakh crore, or 4.5 per cent of GDP, road construction plan may encourage the investment growth outlook.

Inflation still running at low levels on muted food prices and rupee appreciating quite sharply against the US dollar since the beginning of this year give headroom for the RBI to keep interest rates quite low in order to help lift the economy, Fitch added.

It said pick-up in global growth has been better than expected and went on to project 3.2 per cent expansion this year and 3.3 per cent next year.

China&#39;s slowdown is likely to be only modest, while the stabilisation in commodity prices is helping emerging markets outside China to continue to recover from the sharp downturn in 2015, it said.

China&#39;s economy is likely to slow in 2018, but the slowdown is expected to be relatively modest with growth easing to 6.4 per cent from 6.8 per cent this year.&nbsp;

Fitch, however, expects GDP growth to pick up in the next two years on back of gradual implementation of the structural reform agenda and higher real disposable income

Days after India's economy showed signs of recovery, Fitch Ratings today cut the country's GDP growth forecast for the current fiscal to 6.7 per cent from the earlier projected 6.9 per cent, saying the rebound was weaker than expected. It also cut GDP growth forecast for 2018-19 fiscal year to 7.3 per cent from 7.4 per cent predicted in its September Global Economic Outlook (GEO). Fitch, however, expects GDP growth to pick up in the next two years on back of gradual implementation of the structural reform agenda and higher real disposable income. "The Indian economy picked up in 3Q17 (July-September), with GDP growing by 6.3 per cent year-on-year, up from 5.7 per cent in 2Q17,'' Fitch report stated. "However, the rebound was weaker than we expected, and we have reduced our growth forecast for the fiscal year to end- March 2018 (FY18) to 6.7 per cent from 6.9 per cent in the September GEO," Fitch said in its latest GEO. The US-based ratings agency said growth has "repeatedly disappointed" in recent quarters, partly because of one-off factors including the demonetisation programme of November 2016 and disruptions related to the implementation of the Goods and Services Tax (GST) in July 2017. Reversing a five-quarter slide in GDP growth, Indian 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. The GDP growth in the second quarter of 2017-18 compares to 5.7 per cent in April-June, the lowest growth rate since the Narendra Modi government took office, and 7.5 per cent in the September quarter of the previous fiscal. Stating that it expects GDP growth to pick up in the next two years, Fitch said gradual implementation of the structural reform agenda is expected to contribute to higher growth, as will higher real disposable income. "Recent moves by the government should help support the growth outlook and enhance business confidence," it said. The two-year bank recapitalisation plan of Rs 2.1 lakh crore, or 1.4 per cent of GDP, is likely to help address the capital shortages that have hindered the banks' lending capacity. Also, the Rs 6.9 lakh crore, or 4.5 per cent of GDP, road construction plan may encourage the investment growth outlook. Inflation still running at low levels on muted food prices and rupee appreciating quite sharply against the US dollar since the beginning of this year give headroom for the RBI to keep interest rates quite low in order to help lift the economy, Fitch added. It said pick-up in global growth has been better than expected and went on to project 3.2 per cent expansion this year and 3.3 per cent next year. China's slowdown is likely to be only modest, while the stabilisation in commodity prices is helping emerging markets outside China to continue to recover from the sharp downturn in 2015, it said. China's economy is likely to slow in 2018, but the slowdown is expected to be relatively modest with growth easing to 6.4 per cent from 6.8 per cent this year.

Fitch cuts India's FY18 GDP growth forecast to 6.7 per cent

India&#39;s economy will likely grow at its slowest pace in four years this fiscal year, a Reuters poll showed, as a currency ban and the new goods and services tax (GST) have disrupted business activity and dampened consumer demand.

Asia&#39;s third-largest economy will grow at 6.7 per cent in the fiscal year ending March 2018, the slowest since the <a href="http://www.wionews.com/preview/article/22763">new methodology of measuring gross domestic product (GDP)</a> was introduced in the 2014-15 fiscal year, according to the latest poll of 30 economists.

The poll was taken on October&nbsp;12-24, closing just before India announced a<a href="http://www.wionews.com/preview/article/22820"> $32.43 billion plan to </a><a href="http://www.wionews.com/preview/article/22820">recapitalise</a><a href="http://www.wionews.com/preview/article/22820"> state banks,</a> a bid to tackle a major drag on the economy.

While the latest poll&#39;s number for this year matches the International Monetary Fund&#39;s toned-down forecast - that was 7.2 percent earlier - it is a sharp decline from 7.3 percent the July Reuters poll showed.

But despite the broad and marked slowdown expected in economic activity, India&#39;s projected growth rate will be second to the world&#39;s fastest-growing major economy - China - if predictions are met.

A majority of economists said the risk to their already lower outlook for Indian growth this fiscal year is skewed further to the downside as stressed corporate balance sheets prevent a recovery in private capital spending and mounting bad loans at Indian banks remain a burden.

All but three of 23 respondents who answered an extra question said the government had imposed too many sweeping changes for the economy in a short period of time, referring to demonetisation and the GST, and that has lowered growth expectations.

&quot;Demonetisation was unnecessary and had a huge disruptive effect. Even before the economy could recover from that shock, came (the) GST,&quot; said Kunal Kundu, vice president and India economist at Societe Generale.

&quot;More importantly, the government was not prepared adequately enough, thereby transmitting further shock to the slowing economy.&quot;

Prime Minister Narendra Modi&#39;s decision last November to scrap high-value old banknotes wiped out about 86 per cent of currency in circulation virtually overnight in an economy which is largely cash-based.

That has hurt consumer spending, which powers more than half of the $2 trillion economy.

But just when some improvement in data raised hopes that the impact of the cash clampdown had been absorbed, confusion among businesses on pricing goods and services after the July 1 implementation of GST has impacted activity.

The economy grew at 5.7 percent annually in the April-June quarter, its lowest level in more than three years and well below expectations.

However, nearly three-fourths of 23 respondents who answered an extra question said India does not need a stimulus package and instead should focus on fiscal discipline which is vital for investment from outside the country to flow in.

&quot;There is limited scope for any stimulus when the budget fiscal deficit projections will anyways be breached on account of revenue shortfall,&quot; said Abhishek Upadhyay, economist at ICICI Securities Primary Dealership.

Despite bleak growth expectations, the Reserve Bank of India is forecast to keep key policy rates on hold through mid-2019, focusing on anchoring inflation.

The latest Reuters poll predicted retail inflation to average 3.5 percent this fiscal year, unchanged from the July median but below the RBI&#39;s medium-term target of 4.0 per cent.

Inflation was expected to average 4.5 percent in 2018-2019, compared to 4.3 per cent in the previous poll.

&quot;With inflation trending up directionally and RBI&#39;s insistence on 4 percent target on a durable basis, a convincing case for a rate cut appears less plausible,&quot; said Madhavi Arora, economist at Kotak Mahindra Bank.

The poll was taken on Oct. 12-24, closing just before India announced a $32.43 billion plan to recapitalise state banks, a bid to tackle a major drag on the economy.

India's economy will likely grow at its slowest pace in four years this fiscal year, a Reuters poll showed, as a currency ban and the new goods and services tax (GST) have disrupted business activity and dampened consumer demand. Asia's third-largest economy will grow at 6.7 per cent in the fiscal year ending March 2018, the slowest since the new methodology of measuring gross domestic product (GDP) was introduced in the 2014-15 fiscal year, according to the latest poll of 30 economists. The poll was taken on October 12-24, closing just before India announced a $32.43 billion plan to recapitalise state banks, a bid to tackle a major drag on the economy. While the latest poll's number for this year matches the International Monetary Fund's toned-down forecast - that was 7.2 percent earlier - it is a sharp decline from 7.3 percent the July Reuters poll showed. But despite the broad and marked slowdown expected in economic activity, India's projected growth rate will be second to the world's fastest-growing major economy - China - if predictions are met. A majority of economists said the risk to their already lower outlook for Indian growth this fiscal year is skewed further to the downside as stressed corporate balance sheets prevent a recovery in private capital spending and mounting bad loans at Indian banks remain a burden. All but three of 23 respondents who answered an extra question said the government had imposed too many sweeping changes for the economy in a short period of time, referring to demonetisation and the GST, and that has lowered growth expectations. "Demonetisation was unnecessary and had a huge disruptive effect. Even before the economy could recover from that shock, came (the) GST," said Kunal Kundu, vice president and India economist at Societe Generale. "More importantly, the government was not prepared adequately enough, thereby transmitting further shock to the slowing economy." Prime Minister Narendra Modi's decision last November to scrap high-value old banknotes wiped out about 86 per cent of currency in circulation virtually overnight in an economy which is largely cash-based. That has hurt consumer spending, which powers more than half of the $2 trillion economy. But just when some improvement in data raised hopes that the impact of the cash clampdown had been absorbed, confusion among businesses on pricing goods and services after the July 1 implementation of GST has impacted activity. The economy grew at 5.7 percent annually in the April-June quarter, its lowest level in more than three years and well below expectations. However, nearly three-fourths of 23 respondents who answered an extra question said India does not need a stimulus package and instead should focus on fiscal discipline which is vital for investment from outside the country to flow in. "There is limited scope for any stimulus when the budget fiscal deficit projections will anyways be breached on account of revenue shortfall," said Abhishek Upadhyay, economist at ICICI Securities Primary Dealership. Despite bleak growth expectations, the Reserve Bank of India is forecast to keep key policy rates on hold through mid-2019, focusing on anchoring inflation. The latest Reuters poll predicted retail inflation to average 3.5 percent this fiscal year, unchanged from the July median but below the RBI's medium-term target of 4.0 per cent. Inflation was expected to average 4.5 percent in 2018-2019, compared to 4.3 per cent in the previous poll. "With inflation trending up directionally and RBI's insistence on 4 percent target on a durable basis, a convincing case for a rate cut appears less plausible," said Madhavi Arora, economist at Kotak Mahindra Bank.

Cash ban, GST disruptions to pull down India's GDP growth: Poll

The government came out all guns blazing, defending the economic measures it has taken in recent years after concerns raised by the&nbsp;opposition on GDP growth.

Finance Minister Arun Jaitley, along with economic affairs secretary Subhash Chandra Garg and finance secretary Ashok Lavasa, gave a presentation on the economic plan charted out by the government to put India on a higher-growth track.

&quot;There have been lot of discussions and reviews of the economy in the past few weeks within the ministry. When results of the GDP of the first quarter came out then I had said that we will be ready for the response,&quot; Jaitley said.

India has remained the world&#39;s fastest-growing large economy for the past three years, he added.

Hailing GST, Subhash Chandra Garg said it has been the biggest reform, along with others like demonetisation and the battle against black money. He then delved into the presentation, giving details about the reduced amount of current account deficit and the overall health of the economy.

Then Lavasa took over and talked about how the government is creating more jobs and has increased its public spending.

&quot;We have launched the biggest component of road-building programme, the ?Bharat Mala programme which has been cleared by the Union Cabinet today. It will lead to building of 34,800 km of roads,&quot; Lavasa said highlighting government&rsquo;s push towards infrastructure.

About 2000 km of coastal roads will be constructed in first phase of Bharat Mala, he added.

The government said a total of&nbsp;83,677 kms of roads would be built over the next five years, creating &quot;more jobs&quot; and leading to &quot;more growth&quot;.&nbsp;&nbsp;

The second large scheme announced by Team Jaitley today was an &quot;unprecedented&quot; recapitalisation -- by Rs 2.11 lakh crore -- of public sector banks.&nbsp;

The recapitalisation, Team Jaitley said, had come after a cleaning up of the banks and their&nbsp;non-performing assets and would encourage the banks to lend to private enterprise.&nbsp;

Since it came to power three years ago, the Modi government has taken many bold steps to give boost to India&rsquo;s economy, like the a new tax regime the Goods and Services Tax and demonetisation. But both the decisions have been slammed by the opposition and other sections of society.

The Congress has even said that it will mark November 8, 2017 - the first anniversary of demonetisation - as a &#39;Black Day&#39;.

But the government has been firm in its resolve and has maintained that these economic reforms will have positive impact in long term. Many global bodies, including the IMF, have given thumbs up to government&rsquo;s reforms and have predicted bright future for Indian economy.

Team Jaitley said 83,677 kms of roads would be built over the next five years, creating 'more jobs' and leading to 'more growth'

The government came out all guns blazing, defending the economic measures it has taken in recent years after concerns raised by the opposition on GDP growth. Finance Minister Arun Jaitley, along with economic affairs secretary Subhash Chandra Garg and finance secretary Ashok Lavasa, gave a presentation on the economic plan charted out by the government to put India on a higher-growth track. "There have been lot of discussions and reviews of the economy in the past few weeks within the ministry. When results of the GDP of the first quarter came out then I had said that we will be ready for the response," Jaitley said. India has remained the world's fastest-growing large economy for the past three years, he added. Hailing GST, Subhash Chandra Garg said it has been the biggest reform, along with others like demonetisation and the battle against black money. He then delved into the presentation, giving details about the reduced amount of current account deficit and the overall health of the economy. Then Lavasa took over and talked about how the government is creating more jobs and has increased its public spending. "We have launched the biggest component of road-building programme, the ?Bharat Mala programme which has been cleared by the Union Cabinet today. It will lead to building of 34,800 km of roads," Lavasa said highlighting government’s push towards infrastructure. About 2000 km of coastal roads will be constructed in first phase of Bharat Mala, he added. The government said a total of 83,677 kms of roads would be built over the next five years, creating "more jobs" and leading to "more growth". The second large scheme announced by Team Jaitley today was an "unprecedented" recapitalisation -- by Rs 2.11 lakh crore -- of public sector banks. The recapitalisation, Team Jaitley said, had come after a cleaning up of the banks and their non-performing assets and would encourage the banks to lend to private enterprise. Since it came to power three years ago, the Modi government has taken many bold steps to give boost to India’s economy, like the a new tax regime the Goods and Services Tax and demonetisation. But both the decisions have been slammed by the opposition and other sections of society. The Congress has even said that it will mark November 8, 2017 - the first anniversary of demonetisation - as a 'Black Day'. But the government has been firm in its resolve and has maintained that these economic reforms will have positive impact in long term. Many global bodies, including the IMF, have given thumbs up to government’s reforms and have predicted bright future for Indian economy.

New highways, job creation part of govt plan to push India on high-growth track

Teary-eyed commentators have already beaten their chests hollow on how the twin curses of Demonetisation and implementation of the Goods &amp; Services Tax have slowed India&#39;s economic engine to a mere 5.7 per cent expansion. The Opposition has already gone for the government&#39;s jugular for these two apparent self-goals and everyone on Dalal Street is anxious to know whether the ongoing bull market in stock prices will continue or not.&nbsp;

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<h5>The economy is in a temporary trough and just paused a bit in a bid to accelerate further.</h5>
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So, what really happened and what is in store for India&#39;s economy, arguably the finest that is there in the global space as of now. Well, some of the brightest are missing the fine print: the economy is in a temporary trough and just paused a bit in a bid to accelerate further. It&#39;s the proverbial arrow that is pulled back on the bow before it hits the Bulls Eye.

Often, when all the chips are down, it is Bollywood that saves the day: Therefore, &quot;Picture abhi baaki hai, mere dost&quot;! Such is the resilience of the Indian economy that it will ensure growth returns in leaps and bounds. And there are enough economic indicators that are pointing to it.

True, second quarter GDP slowed to 5.7 per cent as companies cleaned up inventories and refused to manufacture on a large scale as the newly minted GST came into effect on July 1st. Since tax rates were to change largely for the better, sensible manufacturers thought it best to pause their production units for a while. That is the reason why you see manufacturing slowing to just 1.2 per cent growth during April-June versus 5.3 per cent in January-March.

There are two parts of the story: the reasons why GDP expansion slowed to its lowest since October 2014 are heavy interest burden on leading corporates owing to large borrowings; an appreciating rupee that has hit exports and, in turn, lowered capacity utilisation and banks that are under severe stress and are unable to lend due to ballooning non-performing assets.&nbsp;

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<h5>The manufacturing PMI index for August, one of the most important measures to track economic expansion, is at 51.2, indicating that the underlying GDP is alive, well and, in fact, growing.</h5>
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These factors have more or less stalled investments in capacity expansion. Therefore, growth slowed on the industrial side. A booming agricultural production also ensured that food prices at the farm level fell, thereby, resulting in agricultural growth slowing as well in the months of April to June.

In any case, most economists had more or less written off two-quarters of GDP expansion post-November 2016, when the government introduced demonetisation by sucking out 86 per cent of the currency float.&nbsp;

Now, look at how high-frequency economic indicators, such as monthly sales of motorcycles, personal vehicles, medium and heavy vehicles, diesel and petrol consumption, steel and cement sales/production, coal and rail freight statistics etc have been performing during July and August. They are all trending HIGHER. Similarly, the manufacturing PMI index for August, one of the most important measures to track economic expansion, is at 51.2, indicating that the underlying GDP is alive, well and, in fact, growing.

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<h5>My bet is that GDP will accelerate to an average 7.4 per cent in the next two quarters.</h5>
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And how does the economic landscape look from here till March 2018?

* My bet is that GDP will accelerate to an average 7.4 per cent in the next two quarters. 
* Companies, stores, malls and mom-and-pop shops will restock goods. The good effects of the ongoing remonetisation are already visible in hotels, construction and transportation sectors.&nbsp; 
* Consumption enters a higher trajectory as states implement salary increases recommended by the 7th Pay Commission. Therefore, disposable incomes rise. 
* The lag effects of lower interest rates start reflecting on corporate balance sheets, consumption levels and on banks&#39; non-performing assets. 
* The government kick starts spending, thanks to higher tax collections and aggressive asset sales in the stock markets. 
* The markets head higher as the government implements more reforms, further liberalises FDI and clamps down on black money. 
* And finally, a normal monsoon, inflation targeting by the central bank, ongoing digitisation and financial inclusion will go a long way in improving GDP in the medium term.

Great nation-states and sustainable economies are not made or broken in one or two quarters. India&#39;s economic trajectory is up despite minor blips. For those of us who have been watching this great nation take massive economic strides in the past three decades, a modest pull back is an opportunity to load up on some serious stocks. And for those who have perennially waged a war on the state, may I say: you shall lose again. No one has won a bet by going short in India. No one will.

For those of us who have been watching this great nation take massive economic strides in the past three decades, a modest pull back is an opportunity to load up on some serious stocks.

Teary-eyed commentators have already beaten their chests hollow on how the twin curses of Demonetisation and implementation of the Goods & Services Tax have slowed India's economic engine to a mere 5.7 per cent expansion. The Opposition has already gone for the government's jugular for these two apparent self-goals and everyone on Dalal Street is anxious to know whether the ongoing bull market in stock prices will continue or not. The economy is in a temporary trough and just paused a bit in a bid to accelerate further. × So, what really happened and what is in store for India's economy, arguably the finest that is there in the global space as of now. Well, some of the brightest are missing the fine print: the economy is in a temporary trough and just paused a bit in a bid to accelerate further. It's the proverbial arrow that is pulled back on the bow before it hits the Bulls Eye. Often, when all the chips are down, it is Bollywood that saves the day: Therefore, "Picture abhi baaki hai, mere dost"! Such is the resilience of the Indian economy that it will ensure growth returns in leaps and bounds. And there are enough economic indicators that are pointing to it. True, second quarter GDP slowed to 5.7 per cent as companies cleaned up inventories and refused to manufacture on a large scale as the newly minted GST came into effect on July 1st. Since tax rates were to change largely for the better, sensible manufacturers thought it best to pause their production units for a while. That is the reason why you see manufacturing slowing to just 1.2 per cent growth during April-June versus 5.3 per cent in January-March. There are two parts of the story: the reasons why GDP expansion slowed to its lowest since October 2014 are heavy interest burden on leading corporates owing to large borrowings; an appreciating rupee that has hit exports and, in turn, lowered capacity utilisation and banks that are under severe stress and are unable to lend due to ballooning non-performing assets. The manufacturing PMI index for August, one of the most important measures to track economic expansion, is at 51.2, indicating that the underlying GDP is alive, well and, in fact, growing. × These factors have more or less stalled investments in capacity expansion. Therefore, growth slowed on the industrial side. A booming agricultural production also ensured that food prices at the farm level fell, thereby, resulting in agricultural growth slowing as well in the months of April to June. In any case, most economists had more or less written off two-quarters of GDP expansion post-November 2016, when the government introduced demonetisation by sucking out 86 per cent of the currency float. Now, look at how high-frequency economic indicators, such as monthly sales of motorcycles, personal vehicles, medium and heavy vehicles, diesel and petrol consumption, steel and cement sales/production, coal and rail freight statistics etc have been performing during July and August. They are all trending HIGHER. Similarly, the manufacturing PMI index for August, one of the most important measures to track economic expansion, is at 51.2, indicating that the underlying GDP is alive, well and, in fact, growing. My bet is that GDP will accelerate to an average 7.4 per cent in the next two quarters. × And how does the economic landscape look from here till March 2018? * My bet is that GDP will accelerate to an average 7.4 per cent in the next two quarters. * Companies, stores, malls and mom-and-pop shops will restock goods. The good effects of the ongoing remonetisation are already visible in hotels, construction and transportation sectors. * Consumption enters a higher trajectory as states implement salary increases recommended by the 7th Pay Commission. Therefore, disposable incomes rise. * The lag effects of lower interest rates start reflecting on corporate balance sheets, consumption levels and on banks' non-performing assets. * The government kick starts spending, thanks to higher tax collections and aggressive asset sales in the stock markets. * The markets head higher as the government implements more reforms, further liberalises FDI and clamps down on black money. * And finally, a normal monsoon, inflation targeting by the central bank, ongoing digitisation and financial inclusion will go a long way in improving GDP in the medium term. Great nation-states and sustainable economies are not made or broken in one or two quarters. India's economic trajectory is up despite minor blips. For those of us who have been watching this great nation take massive economic strides in the past three decades, a modest pull back is an opportunity to load up on some serious stocks. And for those who have perennially waged a war on the state, may I say: you shall lose again. No one has won a bet by going short in India. No one will.

The worst is over when it comes to slowing GDP growth

Australia&#39;s economy shrugged off a cyclone powered bad-weather hit to exports and home building in the first quarter of the year, posting just enough growth to claim nearly 26 years without recession - equalling the Netherlands&#39; 103-quarter record.

Data from the Australian Bureau of Statistics on Wednesday showed gross domestic product (GDP) grew at annual rate of 1.7 percent - the slowest since third-quarter of 2009 when it clocked 1.2 percent.

The local dollar gained a third of a U.S. cent after gross domestic product (GDP) matched expectations of a 0.3 percent rise in the first quarter, from the fourth when it ran at 1.1 percent.

Australia hasn&#39;t seen a recession since 1991 and its run of growth had been the envy of other rich nations although it is dropping off the pack now with both the Britain and the United States clocking 2 percent annual growth in the first quarter.

Output for the 12 months to March was A$1.72 trillion ($1.28 trillion) in current dollars, or about A$71,053 for each of Australia&#39;s 24 million people.

Growth took a knock from Cyclone Debbie, which hit northern parts of Queensland state late in March and caused widespread flooding in the coal-heavy region, disrupting rail haulage for several weeks. Negative net exports subtracted 0.7 percentage points from GDP.

The Reserve Bank of Australia (RBA) on Tuesday conceded economic activity slowed in the March quarter when it held interest rates at a record low 1.50 percent. However, it expressed confidence growth would pick up over the next couple of years to be above 3 percent.

So far, investors seem convinced the RBA is done with its five-year easing campaign. Futures prices imply a small chance of another rate cut by December.

There were doubts around domestic consumption though as households are being burdened by record-low wage growth and high levels of mortgage debt.

Household final consumption expenditure rose 0.5 percent driven by rises in rent, electricity and gas.

($1= 1.3330 Australian dollars)

Australia's economy posts enough GDP growth to claim nearly 26 years without recession - equalling the Netherlands' 103-quarter record.

Australia's economy shrugged off a cyclone powered bad-weather hit to exports and home building in the first quarter of the year, posting just enough growth to claim nearly 26 years without recession - equalling the Netherlands' 103-quarter record. Data from the Australian Bureau of Statistics on Wednesday showed gross domestic product (GDP) grew at annual rate of 1.7 percent - the slowest since third-quarter of 2009 when it clocked 1.2 percent. The local dollar gained a third of a U.S. cent after gross domestic product (GDP) matched expectations of a 0.3 percent rise in the first quarter, from the fourth when it ran at 1.1 percent. Australia hasn't seen a recession since 1991 and its run of growth had been the envy of other rich nations although it is dropping off the pack now with both the Britain and the United States clocking 2 percent annual growth in the first quarter. Output for the 12 months to March was A$1.72 trillion ($1.28 trillion) in current dollars, or about A$71,053 for each of Australia's 24 million people. Growth took a knock from Cyclone Debbie, which hit northern parts of Queensland state late in March and caused widespread flooding in the coal-heavy region, disrupting rail haulage for several weeks. Negative net exports subtracted 0.7 percentage points from GDP. The Reserve Bank of Australia (RBA) on Tuesday conceded economic activity slowed in the March quarter when it held interest rates at a record low 1.50 percent. However, it expressed confidence growth would pick up over the next couple of years to be above 3 percent. So far, investors seem convinced the RBA is done with its five-year easing campaign. Futures prices imply a small chance of another rate cut by December. There were doubts around domestic consumption though as households are being burdened by record-low wage growth and high levels of mortgage debt. Household final consumption expenditure rose 0.5 percent driven by rises in rent, electricity and gas. ($1= 1.3330 Australian dollars)

Australia's economy ties world record for longest expansion despite soft Q1

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