Pakistan has revised its economic growth figures for the last financial year to 5.2 per cent from a previously reported figure of 5.8 per cent, after a sharp cut in the figure for large-scale manufacturing, the statistics office said.

The revision of figures reported by the previous government underlines the economic headwinds facing Pakistan which is holding discussions over a possible bailout from the International Monetary Fund.

When the original estimate was reported in April by the government of Prime Minister Shahid Khaqan Abbasi, it was hailed as the strongest growth in 13 years.

The office, in a statement issued after a meeting of the national accounts committee late on Friday, said gross domestic product in the 2017/18 financial year to June rose 5.22 per cent compared with a previously reported 5.79 per cent.

Growth in the industrial sector was revised to 5.01 per cent from a previously reported 5.8 per cent in the provisional estimate. The biggest change came in the large-scale manufacturing segment, which saw growth revised to 5.01 per cent from 6.13 per cent previously.

In the agriculture sector, growth was revised to 3.7 per cent, from a previous 3.81 per cent, while in services, growth was revised to 5.78 per cent from 6.43 per cent previously. 
Growth in the current year is expected to slow further to 4 per cent this year, according to an IMF forecast from November.

Before the revisions to last year`s GDP figures, Pakistan`s deficit to GDP ratio, estimated at 5.8 per cent in 2017-18, was expected to hit 6.9 per cent this year, according to IMF data.

Pakistan has revised its economic growth figures for the last financial year to 5.2 per cent from a previously reported figure of 5.8 per cent, after a sharp cut in the figure for large-scale manufacturing, the statistics office said.

Pakistan has revised its economic growth figures for the last financial year to 5.2 per cent from a previously reported figure of 5.8 per cent, after a sharp cut in the figure for large-scale manufacturing, the statistics office said. The revision of figures reported by the previous government underlines the economic headwinds facing Pakistan which is holding discussions over a possible bailout from the International Monetary Fund. When the original estimate was reported in April by the government of Prime Minister Shahid Khaqan Abbasi, it was hailed as the strongest growth in 13 years. The office, in a statement issued after a meeting of the national accounts committee late on Friday, said gross domestic product in the 2017/18 financial year to June rose 5.22 per cent compared with a previously reported 5.79 per cent. Growth in the industrial sector was revised to 5.01 per cent from a previously reported 5.8 per cent in the provisional estimate. The biggest change came in the large-scale manufacturing segment, which saw growth revised to 5.01 per cent from 6.13 per cent previously. In the agriculture sector, growth was revised to 3.7 per cent, from a previous 3.81 per cent, while in services, growth was revised to 5.78 per cent from 6.43 per cent previously. Growth in the current year is expected to slow further to 4 per cent this year, according to an IMF forecast from November. Before the revisions to last year`s GDP figures, Pakistan`s deficit to GDP ratio, estimated at 5.8 per cent in 2017-18, was expected to hit 6.9 per cent this year, according to IMF data.

Pakistan cuts 2017/18 economic growth estimate to 5.2 per cent

India's April-December fiscal deficit narrowed to 7.01 trillion rupees ($97.80 billion), or 112.4 per cent of the budgeted target for the current fiscal year, government data showed on Monday.

In April-November, the country's fiscal deficit was 7.17 trillion rupees or about 115 per cent of the budgeted target.

Net tax receipts in the first nine months of the fiscal year that ends in March were 9.36 trillion rupees, the data showed.

The government has revised upward its fiscal deficit target to 3.4 per cent of GDP in the current fiscal year from the previously estimated 3.3 per cent.

India's April-December fiscal deficit narrowed to 7.01 trillion rupees ($97.80 billion), or 112.4 per cent of the budgeted target for the current fiscal year, government data showed on Monday.

India's April-December fiscal deficit narrowed to 7.01 trillion rupees ($97.80 billion), or 112.4 per cent of the budgeted target for the current fiscal year, government data showed on Monday. In April-November, the country's fiscal deficit was 7.17 trillion rupees or about 115 per cent of the budgeted target. Net tax receipts in the first nine months of the fiscal year that ends in March were 9.36 trillion rupees, the data showed. The government has revised upward its fiscal deficit target to 3.4 per cent of GDP in the current fiscal year from the previously estimated 3.3 per cent.

India's April-December fiscal deficit narrows to 7.01 trillion rupees: Government

<a href="http://www.wionews.com/world/india-must-sign-npt-to-gain-entry-into-nsg-patient-negotiations-required-china-194132">India must sign NPT to gain entry into NSG, patient negotiations required: China</a>

India must sign the Non-Proliferation Treaty(NPT) to gain entry into&nbsp;the Nuclear Suppliers Group, China said Thursday, asserting that "patient negotiations" were required for New Delhi's admission into the group as there is no precedent for the inclusion of non-NPT countries.

<a href="http://www.wionews.com/india-news/will-participate-in-all-formats-of-talks-that-bring-peace-india-on-afghan-peace-process-194136">Will participate in all formats of talks that bring peace: India on </a><a href="http://www.wionews.com/india-news/will-participate-in-all-formats-of-talks-that-bring-peace-india-on-afghan-peace-process-194136">Afghan</a><a href="http://www.wionews.com/india-news/will-participate-in-all-formats-of-talks-that-bring-peace-india-on-afghan-peace-process-194136"> peace process</a>

India has said it is "closely following the&nbsp;developments related to peace&nbsp;and reconciliation efforts in Afghanistan which have been undertaken by different stakeholders" and it will participate in "all formats of talks" which could "bring peace and security in the region."

<a href="http://www.wionews.com/india-news/india-expresses-displeasure-to-uk-over-pak-foreign-minister-qureshis-upcoming-anti-india-conference-194147">India expresses displeasure to </a><a href="http://www.wionews.com/india-news/india-expresses-displeasure-to-uk-over-pak-foreign-minister-qureshis-upcoming-anti-india-conference-194147">UK</a><a href="http://www.wionews.com/india-news/india-expresses-displeasure-to-uk-over-pak-foreign-minister-qureshis-upcoming-anti-india-conference-194147"> over Pak foreign minister Qureshi's upcoming anti-India conference</a>

India has come strongly on Islamabad a day after&nbsp;Pakistan's High Commissioner to India&nbsp;Sohail Mahmood was summoned after Pakistani foreign minister Shah Mahmood Qureshi spoke with separatist leader Mirwaiz Umar Farooq, who heads All Parties Hurriyat Conference in the Valley.

<a href="http://www.wionews.com/business-economy/gdp-growth-rate-for-2017-18-revised-upwards-to-72-194138">GDP growth rate for 2017-18 revised upwards to 7.2%</a>

The government Thursday revised the economic growth rate upwards to 7.2 per cent for 2017-18 from the 6.7 per cent estimated earlier. "Real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stand at Rs 131.80 lakh crore and Rs 122.98 lakh crore, respectively, showing growth of 7.2 per cent during 2017-18 and 8.2 per cent during 2016-17," the CSO said.

<a href="http://www.wionews.com/south-asia/russia-to-taliban-afghan-politicians-opposed-to-president-ghani-sources-194150">Russia to host Taliban, Afghan politicians opposed to President Ghani: Sources</a>

Russia will host the Taliban and Afghan politicians&nbsp;opposed to President Ashraf Ghani&nbsp;on Tuesday, Russian and Taliban sources said, promoting its role of power broker in what a US official called an attempt to "muddle" the US-backed peace process.

India must sign NPT to gain entry into NSG, patient negotiations required: China India must sign the Non-Proliferation Treaty(NPT) to gain entry into the Nuclear Suppliers Group, China said Thursday, asserting that "patient negotiations" were required for New Delhi's admission into the group as there is no precedent for the inclusion of non-NPT countries.

India must sign NPT to gain entry into NSG, patient negotiations required: China India must sign the Non-Proliferation Treaty(NPT) to gain entry into the Nuclear Suppliers Group, China said Thursday, asserting that "patient negotiations" were required for New Delhi's admission into the group as there is no precedent for the inclusion of non-NPT countries. Will participate in all formats of talks that bring peace: India on Afghan peace process India has said it is "closely following the developments related to peace and reconciliation efforts in Afghanistan which have been undertaken by different stakeholders" and it will participate in "all formats of talks" which could "bring peace and security in the region." India expresses displeasure to UK over Pak foreign minister Qureshi's upcoming anti-India conference India has come strongly on Islamabad a day after Pakistan's High Commissioner to India Sohail Mahmood was summoned after Pakistani foreign minister Shah Mahmood Qureshi spoke with separatist leader Mirwaiz Umar Farooq, who heads All Parties Hurriyat Conference in the Valley. GDP growth rate for 2017-18 revised upwards to 7.2% The government Thursday revised the economic growth rate upwards to 7.2 per cent for 2017-18 from the 6.7 per cent estimated earlier. "Real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stand at Rs 131.80 lakh crore and Rs 122.98 lakh crore, respectively, showing growth of 7.2 per cent during 2017-18 and 8.2 per cent during 2016-17," the CSO said. Russia to host Taliban, Afghan politicians opposed to President Ghani: Sources Russia will host the Taliban and Afghan politicians opposed to President Ashraf Ghani on Tuesday, Russian and Taliban sources said, promoting its role of power broker in what a US official called an attempt to "muddle" the US-backed peace process.

News brief: Big stories of the day

The government Thursday revised the economic growth rate upwards to 7.2 per cent for 2017-18 from the 6.7 per cent estimated earlier.

"Real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stand at Rs 131.80 lakh crore and Rs 122.98 lakh crore, respectively, showing growth of 7.2 per cent during 2017-18 and 8.2 per cent during 2016-17," the CSO said.

Earlier, the CSO in its advance estimate had pegged the GDP growth rate for 2018-19 at 7.2 per cent.

"The First Revised Estimates for 2017-18 have been compiled using industry-wise/institution-wise detailed information instead of using the benchmark-indicator method employed at the time of release of Provisional Estimates on 31st May, 2018," said the Central Statistics Office (CSO).

The CSO has also released the Second Revised Estimates of National Income, Consumption Expenditure, Saving and Capital Formation for 2016-17.

During 2017-18, the growth rates of primary (comprising agriculture, forestry, fishing and mining and quarrying), secondary (comprising manufacturing, electricity, gas, water supply and other utility services, and construction) and tertiary (services) sectors have been estimated as 5 per cent, 6 per cent and 8.1 per cent as against a growth of 6.8 per cent, 7.5 per cent and 8.4 per cent, respectively, in the previous year.

The government Thursday revised the economic growth rate upwards to 7.2 per cent for 2017-18 from the 6.7 per cent estimated earlier. "Real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stand at Rs 131.

The government Thursday revised the economic growth rate upwards to 7.2 per cent for 2017-18 from the 6.7 per cent estimated earlier. "Real GDP or GDP at constant (2011-12) prices for 2017-18 and 2016-17 stand at Rs 131.80 lakh crore and Rs 122.98 lakh crore, respectively, showing growth of 7.2 per cent during 2017-18 and 8.2 per cent during 2016-17," the CSO said. Earlier, the CSO in its advance estimate had pegged the GDP growth rate for 2018-19 at 7.2 per cent. "The First Revised Estimates for 2017-18 have been compiled using industry-wise/institution-wise detailed information instead of using the benchmark-indicator method employed at the time of release of Provisional Estimates on 31st May, 2018," said the Central Statistics Office (CSO). The CSO has also released the Second Revised Estimates of National Income, Consumption Expenditure, Saving and Capital Formation for 2016-17. During 2017-18, the growth rates of primary (comprising agriculture, forestry, fishing and mining and quarrying), secondary (comprising manufacturing, electricity, gas, water supply and other utility services, and construction) and tertiary (services) sectors have been estimated as 5 per cent, 6 per cent and 8.1 per cent as against a growth of 6.8 per cent, 7.5 per cent and 8.4 per cent, respectively, in the previous year.

GDP growth rate for 2017-18 revised upwards to 7.2%

The International Monetary Fund said Monday it was "imperative" to resolve the uncertainty surrounding how Britain will leave the European Union, which it said was posing a threat to the British and global economy.

"We have already seen the negative effect of this uncertainty on British investment," IMF chief economist Gita Gopinath told reporters in Davos ahead of the opening of the World Economic Forum.

"It is imperative for leaders to resolve this uncertainty immediately."

The IMF had already calculated that if Britain crashed out of the EU without a deal the result would be "a decline in long-run ... GDP of five to eight per cent", she said.

"So that would be quite significant. It is absolutely essential that this uncertainty is resolved sooner than later," she said.

Gopinath's comments came after the IMF released an update to its global economic forecast, showing that a range of uncertainties, including Brexit, but also US-China trade confrontations, were threatening to drag down global growth even further.

The World Economic Outlook cut the global GDP forecast for this year to 3.5 per cent from the 3.7 per cent projected in October. And for 2020 the estimate was trimmed to 3.6 per cent.

While it cut forecasts for a number of national economies, it forecast 1.5 per cent 2019 growth for Britain, the same as in October.

But it warned the estimate is fraught with uncertainty since "as of mid-January, the shape that Brexit will ultimately take remains highly uncertain".

London and Brussels have spent the best part of two years working on a divorce deal, but members of Britain's lower House of Commons comprehensively rejected Prime Minister Theresa May's proposed deal last week.

She will unveil a "Plan B" on Monday, but fears are growing that Britain will crash out of the EU on March 29 unless MPs can force a delay or come up with an alternative plan that Brussels is also happy with, before the deadline.

The International Monetary Fund said Monday it was "imperative" to resolve the uncertainty surrounding how Britain will leave the European Union, which it said was posing a threat to the British and global economy.

The International Monetary Fund said Monday it was "imperative" to resolve the uncertainty surrounding how Britain will leave the European Union, which it said was posing a threat to the British and global economy. "We have already seen the negative effect of this uncertainty on British investment," IMF chief economist Gita Gopinath told reporters in Davos ahead of the opening of the World Economic Forum. "It is imperative for leaders to resolve this uncertainty immediately." The IMF had already calculated that if Britain crashed out of the EU without a deal the result would be "a decline in long-run ... GDP of five to eight per cent", she said. "So that would be quite significant. It is absolutely essential that this uncertainty is resolved sooner than later," she said. Gopinath's comments came after the IMF released an update to its global economic forecast, showing that a range of uncertainties, including Brexit, but also US-China trade confrontations, were threatening to drag down global growth even further. The World Economic Outlook cut the global GDP forecast for this year to 3.5 per cent from the 3.7 per cent projected in October. And for 2020 the estimate was trimmed to 3.6 per cent. While it cut forecasts for a number of national economies, it forecast 1.5 per cent 2019 growth for Britain, the same as in October. But it warned the estimate is fraught with uncertainty since "as of mid-January, the shape that Brexit will ultimately take remains highly uncertain". London and Brussels have spent the best part of two years working on a divorce deal, but members of Britain's lower House of Commons comprehensively rejected Prime Minister Theresa May's proposed deal last week. She will unveil a "Plan B" on Monday, but fears are growing that Britain will crash out of the EU on March 29 unless MPs can force a delay or come up with an alternative plan that Brussels is also happy with, before the deadline.

Imperative to resolve Brexit uncertainty immediately: IMF

The government wants to focus on the districts as part of a bottom-up approach for boosting growth, industry minister Suresh Prabhu said here Saturday.

The idea is to focus on one district at a time and increase its GDP growth by 3-4 percentage points annually, which will help increase the national GDP, the minister said speaking at an Association of National Exchanges Members of India event here.

Accordingly, the government has identified six districts, mapped its baseline of their economy with help from reputed bodies like IIM and NCAER and then work on specifics to increase their economic output.

"We've been focusing on the macro all these while, and while that continues, now we feel the need to also have the micro or the bottom," said Prabhu, who also heads the commerce and aviation ministries.

He said the chosen districts are in Maharashtra, Andhra Pradesh, Bihar, Himachal Pradesh, and Uttar Pradesh, and these districts will get special attention in ease of doing business.

The minister said it is now a certainty that the $2.6-trillion economy will scale the $5-trillion mount over the next seven-nine years, and touch the $10 trillion mark by the turn of 2035.

The measures being undertaken to push growth at district level are aimed at achieving this higher target earlier, he said, adding there will be a launch event in the financial capital next Tuesday regarding the same.

Prabhu said the country is now targeting to increase the annual FDI inflows to $100 billion.

The government has identified the sectors which can attract investments and has prepared a list of 150 companies sitting with huge cash balance which will be targeted to get investments, he said.

He said a vibrant capital market is essential both for mobilising capital as well as make it work effectively, such that it delivers the maximum returns for the economy.

The minister also assured government help to ensure that the capital markets keep performing better.

Prabhu said it is one of the most challenging times for global trade and we'll have to increase our focus on services and merchandise exports and that government has asked Exim Bank to undertake an analysis both from a product as well a geographical perspective to increase exports.

Addressing the event, a top Anmi functionary flagged taxation issues being faced by investors, terming it as a price for transparency which domestic investors have to play and sought to be heard as the government is currently preparing the direct tax code.

M Damodaran, a former Sebi chairman, said he has reservations on self-regulatory organisations and pointed to the lack of success on this front at the chartered accountants, medicines and the legal profession.

The government wants to focus on the districts as part of a bottom-up approach for boosting growth, industry minister Suresh Prabhu said here Saturday. The idea is to focus on one district at a time and increase its GDP growth by 3-4 percentage points annually, which will help increase the national GDP, the minister said speaking at an Association of National Exchanges Members of India event here.

The government wants to focus on the districts as part of a bottom-up approach for boosting growth, industry minister Suresh Prabhu said here Saturday. The idea is to focus on one district at a time and increase its GDP growth by 3-4 percentage points annually, which will help increase the national GDP, the minister said speaking at an Association of National Exchanges Members of India event here. Accordingly, the government has identified six districts, mapped its baseline of their economy with help from reputed bodies like IIM and NCAER and then work on specifics to increase their economic output. "We've been focusing on the macro all these while, and while that continues, now we feel the need to also have the micro or the bottom," said Prabhu, who also heads the commerce and aviation ministries. He said the chosen districts are in Maharashtra, Andhra Pradesh, Bihar, Himachal Pradesh, and Uttar Pradesh, and these districts will get special attention in ease of doing business. The minister said it is now a certainty that the $2.6-trillion economy will scale the $5-trillion mount over the next seven-nine years, and touch the $10 trillion mark by the turn of 2035. The measures being undertaken to push growth at district level are aimed at achieving this higher target earlier, he said, adding there will be a launch event in the financial capital next Tuesday regarding the same. Prabhu said the country is now targeting to increase the annual FDI inflows to $100 billion. The government has identified the sectors which can attract investments and has prepared a list of 150 companies sitting with huge cash balance which will be targeted to get investments, he said. He said a vibrant capital market is essential both for mobilising capital as well as make it work effectively, such that it delivers the maximum returns for the economy. The minister also assured government help to ensure that the capital markets keep performing better. Prabhu said it is one of the most challenging times for global trade and we'll have to increase our focus on services and merchandise exports and that government has asked Exim Bank to undertake an analysis both from a product as well a geographical perspective to increase exports. Addressing the event, a top Anmi functionary flagged taxation issues being faced by investors, terming it as a price for transparency which domestic investors have to play and sought to be heard as the government is currently preparing the direct tax code. M Damodaran, a former Sebi chairman, said he has reservations on self-regulatory organisations and pointed to the lack of success on this front at the chartered accountants, medicines and the legal profession.

District-focused approach to boost GDP growth faster: Suresh Prabhu

Growth of the world economy is expected to slow as the US-China trade conflict takes its toll and undermines confidence, the World Bank said Tuesday in its semi-annual forecast.

Rising trade tensions are the <a href="http://www.wionews.com/business-economy/china-expected-to-continue-win-win-solutions-for-world-development-world-bank-184302">most high-profile risk to</a> the global economy but the World Bank warned of other lurking dangers on Tuesday in its semi-annual Global Economic Prospects report.

Growth of the world economy is<a href="http://www.wionews.com/business-economy/india-to-retain-top-position-in-remittances-with-us-80-billion-world-bank-182411"> expected to slow to 2.9 per cent this year</a>, and 2.8 per cent in 2020, slightly below the previous forecast, and the estimates for nearly all regions and countries were downgraded.

At the center of the turmoil, US economic growth is expected to slow this year by four tenths of a point, falling to 2.5 per cent down from 2.9 per cent in 2018, and to slow even further next year to 1.7 per cent.

The report highlights a big jump in borrowing by the poorest nations, much of it in foreign currency and debt that increasingly is coming from private lenders that unlike the World Bank do not provide concessional terms.

And, with the US central bank and others raising interest rates, borrowing costs are increasing.

Total debt has risen worldwide to a record $184 trillion in 2017, according to the International Monetary Fund.

And the World Bank said low-income countries had seen public debt jump to above 50 per cent of GDP, up from 30 per cent in 2013.

"Debt levels are concerns especially when you have financial conditions that are tightening," Kose said, noting that emerging market and developing economies "rely on external financing to roll over their debt liabilities."&nbsp;

Corporate debt also has risen but "irrespective of the source of the debt, when you have balance sheet problems in a certain segment of an economy, ultimately it effects real activity," he said.

"Borrowers need to understand the implications of rapid accumulation of debt while you have interest rates increasing at the global level."

The World Bank said about a third of GDP in emerging market and developing economies comes from the informal sector, and in some countries the share is much higher.

"Informality is a major problem many emerging market and developing economies," Kose said.

"Ultimately informality is also a symptom of underdevelopment. So policies that promote growth also help improve the formal sector and provide the types of incentives for these informal firms to shift to the formal sector."

A key factor is government investments that promote growth, whether in infrastructure or in human capital - which is especially critical to prepare workers for technological change.

"All of these things will stimulate the economy in the short-term while improving the economy's long-term potential."

Regulation too must be tailored to foster business activity, rather than impede it and "should not push firms to the informal sector."

Kose cautioned: "This is not a problem you can solve overnight or over a year, this is a problem you need to solve over time."

Another concern is the decline in per capita GDP growth in sub-Saharan Africa, which the World Bank says will average less than one per cent in the next three years.

That makes it "very difficult if not impossible to have a meaningful reduction in poverty," Kose said.

Given the existing poverty challenge in the region, "policymakers need to find ways to increase growth prospects of the region to address this issue."

"As much as we think these problems are localized problems...at the end of the day they have implications for other countries, for other regions, and the problems require immediate attention."

The share of the world's poor residing in the region could grow to 87 per cent by 2030 unless growth accelerates, the report warned.

Growth of the world economy is expected to slow as the US-China trade conflict takes its toll and undermines confidence, the World Bank said Tuesday in its semi-annual forecast.

Growth of the world economy is expected to slow as the US-China trade conflict takes its toll and undermines confidence, the World Bank said Tuesday in its semi-annual forecast. Rising trade tensions are the most high-profile risk to the global economy but the World Bank warned of other lurking dangers on Tuesday in its semi-annual Global Economic Prospects report. Growth of the world economy is expected to slow to 2.9 per cent this year, and 2.8 per cent in 2020, slightly below the previous forecast, and the estimates for nearly all regions and countries were downgraded. At the center of the turmoil, US economic growth is expected to slow this year by four tenths of a point, falling to 2.5 per cent down from 2.9 per cent in 2018, and to slow even further next year to 1.7 per cent. The report highlights a big jump in borrowing by the poorest nations, much of it in foreign currency and debt that increasingly is coming from private lenders that unlike the World Bank do not provide concessional terms. And, with the US central bank and others raising interest rates, borrowing costs are increasing. Total debt has risen worldwide to a record $184 trillion in 2017, according to the International Monetary Fund. And the World Bank said low-income countries had seen public debt jump to above 50 per cent of GDP, up from 30 per cent in 2013. "Debt levels are concerns especially when you have financial conditions that are tightening," Kose said, noting that emerging market and developing economies "rely on external financing to roll over their debt liabilities." Corporate debt also has risen but "irrespective of the source of the debt, when you have balance sheet problems in a certain segment of an economy, ultimately it effects real activity," he said. "Borrowers need to understand the implications of rapid accumulation of debt while you have interest rates increasing at the global level." The World Bank said about a third of GDP in emerging market and developing economies comes from the informal sector, and in some countries the share is much higher. "Informality is a major problem many emerging market and developing economies," Kose said. "Ultimately informality is also a symptom of underdevelopment. So policies that promote growth also help improve the formal sector and provide the types of incentives for these informal firms to shift to the formal sector." A key factor is government investments that promote growth, whether in infrastructure or in human capital - which is especially critical to prepare workers for technological change. "All of these things will stimulate the economy in the short-term while improving the economy's long-term potential." Regulation too must be tailored to foster business activity, rather than impede it and "should not push firms to the informal sector." Kose cautioned: "This is not a problem you can solve overnight or over a year, this is a problem you need to solve over time." Another concern is the decline in per capita GDP growth in sub-Saharan Africa, which the World Bank says will average less than one per cent in the next three years. That makes it "very difficult if not impossible to have a meaningful reduction in poverty," Kose said. Given the existing poverty challenge in the region, "policymakers need to find ways to increase growth prospects of the region to address this issue." "As much as we think these problems are localized problems...at the end of the day they have implications for other countries, for other regions, and the problems require immediate attention." The share of the world's poor residing in the region could grow to 87 per cent by 2030 unless growth accelerates, the report warned.

World economy to slow this year due to US-China trade conflict: World Bank

India's GDP (gross domestic product) is estimated to grow at 7.2 per cent in 2018-19 compared to 6.7 per cent attained during the previous fiscal, official data showed here on Monday.

The annual economic growth had fallen to a worse-than-expected 7.1 per cent in the July-September quarter, from 8.2 per cent in the previous quarter, dragged down by a slower consumer spending and farm growth, posing a risk to Modi who plans a populist budget to win back voters.

With the fall in global crude oil prices and strengthening of the rupee in recent weeks, the Modi administration plans to prop up rural demand through higher state spending and a financial package for farmers in the annual budget to be presented on February 1.

Gross domestic product is estimated to grow 7.2 per cent in 2018/19, faster than a provisional 6.7 per cent growth in 2017/18, Ministry of Statistics said in a statement.

Manufacturing is now forecast to grow 8.3 per cent this fiscal year compared with 5.7 per cent in the previous year. Farm output may grow by 3.8 per cent, up from 3.4 per cent.

Most private economists have already lowered India`s growth forecast to around 7 per cent for the 2018/19 fiscal year, compared with the Reserve Bank of India`s earlier estimate of 7.4 per cent, citing weakening consumption and a slowdown in credit offtake.

"Sequential growth has slowed down across the board. The slowdown in manufacturing, construction and select services are the main reasons for slowdown seen in 2018/19," said Rupa Rege-Nitsure, chief economist at L&amp;T Financial Holdings Ltd.

She said the government could prop up rural demand ahead of the elections and the first half of 2019 could remain volatile due to political uncertainty and global headwinds.

Having swept to power in 2014 promising to galvanise the economy, Modi has been criticised for failing to create enough jobs for the more than 12 million young Indians entering the labour force each year.

India needs growth of 8 per cent-plus to generate enough jobs for those workers.

The unemployment rate shot to a 27-month high of 7.38 per cent in December and numbers of those employed fell by about 11 million over the last 12 months, data released by the Centre for Monitoring Indian Economy, a Mumbai-based think tank, showed.

The statistics office will release economic growth data for the October-December quarter on Feb. 28, along with revised full-year growth estimates.

India's GDP (gross domestic product) is estimated to grow at 7.2 per cent in 2018-19 compared to 6.7 per cent attained during the previous fiscal, official data showed here on Monday.

India's GDP (gross domestic product) is estimated to grow at 7.2 per cent in 2018-19 compared to 6.7 per cent attained during the previous fiscal, official data showed here on Monday. The annual economic growth had fallen to a worse-than-expected 7.1 per cent in the July-September quarter, from 8.2 per cent in the previous quarter, dragged down by a slower consumer spending and farm growth, posing a risk to Modi who plans a populist budget to win back voters. With the fall in global crude oil prices and strengthening of the rupee in recent weeks, the Modi administration plans to prop up rural demand through higher state spending and a financial package for farmers in the annual budget to be presented on February 1. Gross domestic product is estimated to grow 7.2 per cent in 2018/19, faster than a provisional 6.7 per cent growth in 2017/18, Ministry of Statistics said in a statement. Manufacturing is now forecast to grow 8.3 per cent this fiscal year compared with 5.7 per cent in the previous year. Farm output may grow by 3.8 per cent, up from 3.4 per cent. Most private economists have already lowered India`s growth forecast to around 7 per cent for the 2018/19 fiscal year, compared with the Reserve Bank of India`s earlier estimate of 7.4 per cent, citing weakening consumption and a slowdown in credit offtake. "Sequential growth has slowed down across the board. The slowdown in manufacturing, construction and select services are the main reasons for slowdown seen in 2018/19," said Rupa Rege-Nitsure, chief economist at L&T Financial Holdings Ltd. She said the government could prop up rural demand ahead of the elections and the first half of 2019 could remain volatile due to political uncertainty and global headwinds. Having swept to power in 2014 promising to galvanise the economy, Modi has been criticised for failing to create enough jobs for the more than 12 million young Indians entering the labour force each year. India needs growth of 8 per cent-plus to generate enough jobs for those workers. The unemployment rate shot to a 27-month high of 7.38 per cent in December and numbers of those employed fell by about 11 million over the last 12 months, data released by the Centre for Monitoring Indian Economy, a Mumbai-based think tank, showed. The statistics office will release economic growth data for the October-December quarter on Feb. 28, along with revised full-year growth estimates.

Government estimates GDP growth at 7.2% for 2018-19

British Prime Minister Rishi Sunak, who is currently dealing with an economic crisis before the general elections, is in the news for a private jet he took last year that was apparently funded by an entrepreneur named Akhil Tripath who is also a minor Tory donor.

British Prime Minister Rishi Sunak, who is currently dealing with an economic crisis before the general elections, is in the news for a private jet he took last year that was apparently funded by an entrepreneur named Akhil Tripath who is also a minor Tory donor. British media was awash with headlines Thursday (Feb 29) about how Sunak attended two Conservative conferences in Wales and Scotland last year and took a private jet to travel there. The private jet was funded by Tripathi, a report by the Financial Times on Thursday said. Tripathi is the co-founder of Signifier Medical Technologies, a start-up that deals in anti-snoring devices and is facing losses. Questions are now being raised about how Tripathi gained access to Prime Minister Sunak and the due diligence done by the Conservative Party before accepting his money. Following Sunak's trip in April 2023, he sent a thank-you note to Tripathi for arranging the flight. However, the private jet did not belong to Tripathi and was rented. So who is Akhil Tripathi? Entrepreneur, minor Tony donor Tripathi's startup Signifier Medical Technologies focuses on the development and commercialisation of innovative and non-invasive solutions for patients with snoring and sleep disorder-related breathing conditions. The company is hoping to sell its anti-snoring device to the National Health Service (NHS). Also read | Rishi Sunak calls out threats to MPs, warns of 'toxic' culture in UK politics The Financial Times report said that Tripathi is a minor Tory donor. Months after he arranged the private jet for Prime Minister Sunak, Tripathi was embroiled in a civil fraud case involving his start-up. He rented the Embraer Legacy 500 to Sunak, which the PM recorded as a $48,619 (around £38,500) gift. Sunak's trips led to questions about the due diligence that he and the Conservative party did on Tripathi, the report added. Tripathi made his first donation worth $63,142 to the Conservatives in July 2021. In total, he has given nearly $194,000 to the party. Since developing a relationship with Sunak, Tripathi has been pursued in the courts by investors in his startup. As per the report, one investor said that Tripathi committed a “fraud” in relation to the company. Also watch | Rishi Sunak's asylum laws trapping 55,000 people in perma-backlog: Report × Meanwhile, the entrepreneur has held meetings with several politicians, including former health secretary Sajid Javid and Chancellor of the Exchequer Jeremy Hunt. Not much is known about Tripathi's early background. As per Companies House, he is an Indian national born in 1985. He has been the co-founder of many other startups apart from Signifier. At the time Tripathi arranged for the flight for Sunak, Signifier reported losses of $42.3 million on revenue of just $3.1 million for the year to March 31, 2022, the report said. But despite the losses, Tripathi lived a glamorous lifestyle. 'How did Sunak end up on that plane?' The Labour Party demanded that Sunak and the Conservative Party should give an account of how the prime minister ended up on that private jet. “They must explain on what basis Mr Tripathi gained access to the highest levels of government, and what checks were made on his background before he did so,” Emily Thornberry, Labour’s shadow attorney-general, told the publication. Tripathi is currently facing two civil actions in the High Court of Justice in London. A Conservative party official said that on reflection, PM Sunak should have “maybe thought twice” before getting on the private jet arranged by the entrepreneur. (With inputs from agencies)

RBI likely to give government bumper interim dividend: Sources

<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 government is looking at bringing untaxed sectors in the tax net as well as improving compliance to raise the tax-to-GDP ratio, Revenue Secretary Ajay Bhushan Pandey said.

He also said <a href="http://www.wionews.com/india-news/opposition-ruled-states-oppose-rate-cuts-in-gst-citing-revenue-consideration-185889">GST officials </a>would ensure that taxpayers who are paying taxes honestly are not disturbed, but those who are defaulting in payment or not filing returns should be brought within the tax fold.

In an interview to PTI, Pandey, who took charge as the Revenue Secretary earlier this month, said the Income Tax Department will implement faceless assessment for all scrutiny cases over the next one year as it seeks to make the process objective without any scope for bias.

Asked how the government would go about increasing the tax-to-GDP ratio, Pandey said: "There are two issues to this. One involves the policy of the government as to which are the areas which are not taxed and should be brought into the tax net. The other involves wherever some steps are required to improve compliance, their compliance should be ensured.

"So in the areas where is there of scope taxation, and where it can be done without any adverse impact, such areas will have to be identified and accordingly we will have to work on this."

In the last four years, the country's tax-to-GDP ratio has improved from 10 per cent to 11.5 per cent.

<a href="http://www.wionews.com/india-news/future-roadmap-will-be-to-work-towards-a-single-standard-rate-instead-of-two-arun-jaitley-186136">Finance Minister Arun Jaitley</a> had earlier said that while the salaried class pays its due share of taxes, "most other sections" have to improve their tax payment record, which is keeping India "far from being a tax-compliant society".

Pandey said the number of income tax return filers has jumped 50 per cent to over 6 crores in the assessment year 2018-19 compared to the year-ago period.

He said in order to improve the tax compliance and also to facilitate honest taxpayers, various initiatives are being planned by the Central Board of Direct Taxes.

"Our endeavour is that over a period of next one year or so, we should move towards a system where the scrutiny will happen in a faceless manner where a person can be given a questionnaire of the points which have been raised in the scrutiny and then the person can reply on the portal or through the emails to the officer who can be located anywhere in the country so that the case of scrutiny is decided in a very, very objective manner without any scope for any bias or harassment," he said.

With regard to the Goods and Services Tax (GST), Pandey said tackling evasion would be one of the priority areas as it not only affects the revenue of the government but also makes those businesses which are honestly paying tax less competitive.

"Our effort is to bring in systems so that the tendency to evade is brought down so that those who are paying taxes honestly are not put at disadvantage.

"What we are trying to ensure is a large number of taxpayers who are paying taxes honestly, they are not to be disturbed. And those who are defaulting in payment or filing returns, or not filing correct returns, and not paying due taxes should be brought within the tax fold," he said.

Over 1.16 crore businesses are registered under GST, which was rolled out on July 1, 2017, after subsuming 17 local taxes, including excise duty, service tax and VAT.

Stating that only a "fraction of a per cent" of registered taxpayers would be asked for clarification in case of mismatch in returns, Pandey said in cases where clarification is not sufficient, further action would be taken.

"Whole purpose is no honest taxpayer should be disturbed and at the same time we have to discourage people who evade taxes so that government revenue is not impacted and competitiveness of honest businesses also does not suffer," he said.

The monthly GST revenues have averaged Rs 97,100 crore in the April-November period of the current fiscal, up from Rs 89,100 crore in the previous financial year.

The government is looking at bringing untaxed sectors in the tax net as well as improving compliance to raise the tax-to-GDP ratio, Revenue Secretary Ajay Bhushan Pandey said.

The government is looking at bringing untaxed sectors in the tax net as well as improving compliance to raise the tax-to-GDP ratio, Revenue Secretary Ajay Bhushan Pandey said. He also said GST officials would ensure that taxpayers who are paying taxes honestly are not disturbed, but those who are defaulting in payment or not filing returns should be brought within the tax fold. In an interview to PTI, Pandey, who took charge as the Revenue Secretary earlier this month, said the Income Tax Department will implement faceless assessment for all scrutiny cases over the next one year as it seeks to make the process objective without any scope for bias. Asked how the government would go about increasing the tax-to-GDP ratio, Pandey said: "There are two issues to this. One involves the policy of the government as to which are the areas which are not taxed and should be brought into the tax net. The other involves wherever some steps are required to improve compliance, their compliance should be ensured. "So in the areas where is there of scope taxation, and where it can be done without any adverse impact, such areas will have to be identified and accordingly we will have to work on this." In the last four years, the country's tax-to-GDP ratio has improved from 10 per cent to 11.5 per cent. Finance Minister Arun Jaitley had earlier said that while the salaried class pays its due share of taxes, "most other sections" have to improve their tax payment record, which is keeping India "far from being a tax-compliant society". Pandey said the number of income tax return filers has jumped 50 per cent to over 6 crores in the assessment year 2018-19 compared to the year-ago period. He said in order to improve the tax compliance and also to facilitate honest taxpayers, various initiatives are being planned by the Central Board of Direct Taxes. "Our endeavour is that over a period of next one year or so, we should move towards a system where the scrutiny will happen in a faceless manner where a person can be given a questionnaire of the points which have been raised in the scrutiny and then the person can reply on the portal or through the emails to the officer who can be located anywhere in the country so that the case of scrutiny is decided in a very, very objective manner without any scope for any bias or harassment," he said. With regard to the Goods and Services Tax (GST), Pandey said tackling evasion would be one of the priority areas as it not only affects the revenue of the government but also makes those businesses which are honestly paying tax less competitive. "Our effort is to bring in systems so that the tendency to evade is brought down so that those who are paying taxes honestly are not put at disadvantage. "What we are trying to ensure is a large number of taxpayers who are paying taxes honestly, they are not to be disturbed. And those who are defaulting in payment or filing returns, or not filing correct returns, and not paying due taxes should be brought within the tax fold," he said. Over 1.16 crore businesses are registered under GST, which was rolled out on July 1, 2017, after subsuming 17 local taxes, including excise duty, service tax and VAT. Stating that only a "fraction of a per cent" of registered taxpayers would be asked for clarification in case of mismatch in returns, Pandey said in cases where clarification is not sufficient, further action would be taken. "Whole purpose is no honest taxpayer should be disturbed and at the same time we have to discourage people who evade taxes so that government revenue is not impacted and competitiveness of honest businesses also does not suffer," he said. The monthly GST revenues have averaged Rs 97,100 crore in the April-November period of the current fiscal, up from Rs 89,100 crore in the previous financial year.

Focussing on improving compliance, identifying areas which escaped tax net: Revenue Secretary AB Pandey

The US central bank sent a strong signal on Friday that it would be willing to reconsider expected <a href="http://www.wionews.com/business-economy/us-federal-reserve-hikes-interest-rates-wall-street-stocks-tumble-185385">interest rate hikes </a>amid new data showing President Donald Trump's multi-front trade wars are dragging on the economy and shaking up investors.

The message, from the senior Federal Reserve official with the closest links to US financial markets, sent the Dow Jones Industrial Average surging 300 points. But the index later turned negative once again, and closed with yet another steep decline, its worst week in 10 years.

"I think we are hearing something important for markets and that is a concern around risks to the economy and potential slowdown," New York Federal Reserve Bank President John Williams said Friday on CNBC.

He stressed that the Fed is listening to the fears about the risks and will "be ready to reassess and re-evaluate our views and our policy stance."

It was a remarkable comment coming just two days after the Fed raised the key borrowing rate on Wednesday and signalled it will continue to hike next year, albeit at a slower pace, with only two increases projected.

Economist Chris Low lambasted the Fed's "epic post-meeting communications bungle," and cited the "glaring omission" of the Fed failing to recognize a global manufacturing slowdown, and continuing to believe the labour market is the main factor behind inflation.

The Fed has continued to forecast strong growth, which would support their case for tightening monetary policy, but the expected inflation spurt and rise in wages have not materialized.&nbsp;

New data Friday showed the Fed's preferred inflation index slowed to 1.8 per cent in November, below the central bank's target.

"It's hard to imagine anyone would think it's acceptable to signal three rate hikes when inflation is below target," Low said, noting the Fed forecast see two hikes in 2019 and one in 2020.

Trump effect?&nbsp;

Williams tried to correct the market impression that two interest rate increases are set in stone for next year, highlighting a slight change of language in the policy statement issued Wednesday.&nbsp;

The Fed's November statement said rate increases were expected, while now it "judges that some further gradual" hikes are in store, which Williams said, "is not a commitment or promise in any way."

"Clearly the Fed is changing its tone and it's getting a little more dovish following the market reaction this week," said Adam Sarhan of 50 Park Investments.

"The Fed is blinking"

Of course, there were many who criticized the Fed for not raising interest rates fast enough in the past two years.

While the Fed continues to forecast solid growth, new government data released Friday revealed that falling exports and slower consumer spending and business investment are putting the brakes on economic growth in the second half of the year, while inflation is again falling.

US growth in the July-September quarter was slightly slower than previously reported, at 3.4 per cent, dragged down by the large drop in exports, the Commerce Department reported.

With hundreds of billions of dollars in goods hit by retaliatory tariffs, US exports fell by the largest amount since early 2009 at the height of the global financial crisis, according to the report, the third and final reading on third-quarter GDP.

Trump's aggressive trade policies, and especially the tariff retaliation from China, has impeded exports, with soybean sales nearly grinding to a halt.&nbsp;

The strong US dollar also has made American goods more expensive.

The dispute with China, even with a ceasefire declared until March 1 for negotiations, has created fears of slowing US and global growth, and caused stock markets to retreat, with Wall Street wiping out all of the 2018 gains.

Sluggish Q4&nbsp;

White House trade advisor Peter Navarro helped fuel the Wall Street downturn Friday with more hardline comments about China in an interview with Nikkei, saying Beijing is "trying to steal the future."

He also said two rate hikes by the Fed would be "two too many." &nbsp;

"We don't understand why the Fed is acting so contractionary, at a time when there's no inflation to worry about."

Gregory Daco of Oxford Economics said the data added to "evidence that business investment momentum continues to gradually cool."

Other data show fourth-quarter growth is shaping up to be even more sluggish.

Purchases of durable goods — big-ticket items like appliances, vehicles and machinery — rose in November compared to October, but much less than expected. That follows a big drop in October and will drag on GDP in the final quarter of 2018.

The US central bank sent a strong signal on Friday that it would be willing to reconsider expected interest rate hikes amid new data showing President Donald Trump's multi-front trade wars are dragging on the economy and shaking up investors.

The US central bank sent a strong signal on Friday that it would be willing to reconsider expected interest rate hikes amid new data showing President Donald Trump's multi-front trade wars are dragging on the economy and shaking up investors. The message, from the senior Federal Reserve official with the closest links to US financial markets, sent the Dow Jones Industrial Average surging 300 points. But the index later turned negative once again, and closed with yet another steep decline, its worst week in 10 years. "I think we are hearing something important for markets and that is a concern around risks to the economy and potential slowdown," New York Federal Reserve Bank President John Williams said Friday on CNBC. He stressed that the Fed is listening to the fears about the risks and will "be ready to reassess and re-evaluate our views and our policy stance." It was a remarkable comment coming just two days after the Fed raised the key borrowing rate on Wednesday and signalled it will continue to hike next year, albeit at a slower pace, with only two increases projected. Economist Chris Low lambasted the Fed's "epic post-meeting communications bungle," and cited the "glaring omission" of the Fed failing to recognize a global manufacturing slowdown, and continuing to believe the labour market is the main factor behind inflation. The Fed has continued to forecast strong growth, which would support their case for tightening monetary policy, but the expected inflation spurt and rise in wages have not materialized. New data Friday showed the Fed's preferred inflation index slowed to 1.8 per cent in November, below the central bank's target. "It's hard to imagine anyone would think it's acceptable to signal three rate hikes when inflation is below target," Low said, noting the Fed forecast see two hikes in 2019 and one in 2020. Trump effect? Williams tried to correct the market impression that two interest rate increases are set in stone for next year, highlighting a slight change of language in the policy statement issued Wednesday. The Fed's November statement said rate increases were expected, while now it "judges that some further gradual" hikes are in store, which Williams said, "is not a commitment or promise in any way." "Clearly the Fed is changing its tone and it's getting a little more dovish following the market reaction this week," said Adam Sarhan of 50 Park Investments. "The Fed is blinking" Of course, there were many who criticized the Fed for not raising interest rates fast enough in the past two years. While the Fed continues to forecast solid growth, new government data released Friday revealed that falling exports and slower consumer spending and business investment are putting the brakes on economic growth in the second half of the year, while inflation is again falling. US growth in the July-September quarter was slightly slower than previously reported, at 3.4 per cent, dragged down by the large drop in exports, the Commerce Department reported. With hundreds of billions of dollars in goods hit by retaliatory tariffs, US exports fell by the largest amount since early 2009 at the height of the global financial crisis, according to the report, the third and final reading on third-quarter GDP. Trump's aggressive trade policies, and especially the tariff retaliation from China, has impeded exports, with soybean sales nearly grinding to a halt. The strong US dollar also has made American goods more expensive. The dispute with China, even with a ceasefire declared until March 1 for negotiations, has created fears of slowing US and global growth, and caused stock markets to retreat, with Wall Street wiping out all of the 2018 gains. Sluggish Q4 White House trade advisor Peter Navarro helped fuel the Wall Street downturn Friday with more hardline comments about China in an interview with Nikkei, saying Beijing is "trying to steal the future." He also said two rate hikes by the Fed would be "two too many." "We don't understand why the Fed is acting so contractionary, at a time when there's no inflation to worry about." Gregory Daco of Oxford Economics said the data added to "evidence that business investment momentum continues to gradually cool." Other data show fourth-quarter growth is shaping up to be even more sluggish. Purchases of durable goods — big-ticket items like appliances, vehicles and machinery — rose in November compared to October, but much less than expected. That follows a big drop in October and will drag on GDP in the final quarter of 2018.

US Federal could rethink rate hikes as Trump trade wars drag on economy

India is set to increase its public health spending to 2.5 per cent of its gross domestic product (GDP) by 2025, Prime Minister Narendra Modi said Wednesday. He also said India is one of the first countries to advocate focused attention on adolescence and to implement a full-fledged health promotion and prevention programme for adolescents.

Addressing the 2018 Partners’ Forum here, he said the central government is set to increase its spending on public health to 2.5 per cent of the GDP. As of now, the country spends 1.15 per cent of the GDP on health.

The Partners’ Forum meets this year will focus on improving multi-sectoral action for results, sharing country solutions and capturing the best practices and knowledge within the health sector and among related sectors.

Modi said that under Mission Indradhaush, a massive immunisation programme, India reached 32.8 million children and 8.4 million pregnant women over the last three years.

“We have made a lot of progress in the last few years and yet a lot remains to be done. From bigger budgets to better outcomes and from mindset change to monitoring, there are a lot of interventions required,” he told the gathering which comprised experts from several countries.

India is set to increase its public health spending to 2.5 per cent of its gross domestic product (GDP) by 2025, Prime Minister Narendra Modi said Wednesday. He also said India is one of the first countries to advocate focused attention on adolescence and to implement a full-fledged health promotion and prevention programme for adolescents.

India is set to increase its public health spending to 2.5 per cent of its gross domestic product (GDP) by 2025, Prime Minister Narendra Modi said Wednesday. He also said India is one of the first countries to advocate focused attention on adolescence and to implement a full-fledged health promotion and prevention programme for adolescents. Addressing the 2018 Partners’ Forum here, he said the central government is set to increase its spending on public health to 2.5 per cent of the GDP. As of now, the country spends 1.15 per cent of the GDP on health. The Partners’ Forum meets this year will focus on improving multi-sectoral action for results, sharing country solutions and capturing the best practices and knowledge within the health sector and among related sectors. Modi said that under Mission Indradhaush, a massive immunisation programme, India reached 32.8 million children and 8.4 million pregnant women over the last three years. “We have made a lot of progress in the last few years and yet a lot remains to be done. From bigger budgets to better outcomes and from mindset change to monitoring, there are a lot of interventions required,” he told the gathering which comprised experts from several countries.

India to increase public health spending to 2.5 per cent of GDP, says PM Narendra Modi

India's current account deficit (CAD) widened to 2.9 per cent of the GDP in the second quarter of the fiscal compared to 1.1 per cent in the year-ago period, mainly due to a large trade deficit, the RBI said Friday.

The CAD, or the difference between outflow and inflow of foreign exchange in the country's current account, was $19.1 billion during the quarter ended September 30, 2018.

It increased from $6.9 billion or 1.1 per cent of GDP in the second quarter of 2017-18. The CAD stood at $15.9 billion (2.4 per cent of GDP) in the April-June quarter.

"India's current account deficit (CAD) at US$ 19.1 billion (2.9 per cent of GDP) in Q2 of 2018-19 increased from US$ 6.9 billion (1.1 per cent of GDP) in Q2 of 2017-18 and US$ 15.9 billion (2.4 per cent of GDP) in the preceding quarter," the RBI said.

The CAD has increased to 2.7 per cent of GDP in first half of 2018-19 from 1.8 per cent in the corresponding period of 2017-18 on the back of widening of the trade deficit.

As per the central bank, the widening of the CAD on a year-on-year basis was primarily on account of a higher trade deficit at $50 billion as compared to $32.5 billion a year ago.

RBI's preliminary data on India's balance of payments (BoP) for July-September 2018-19 further revealed that net services receipts increased by 10.2 per cent on a year-on-year basis, mainly on the back of a rise in net earnings from software and financial services.

Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $20.9 billion during the quarter, increasing by 19.8 per cent from their level a year ago.

In the financial account, net foreign direct investment at $7.9 billion in the second quarter of 2018-19 moderated from $12.4 billion in the similar period of last fiscal.

RBI said portfolio investment recorded net outflow of $1.6 billion as compared to an inflow of $2.1 billion in the second quarter last year on account of net sales in both the debt and equity markets.

Further, net receipts on account of non-resident deposits increased to $3.3 billion in the second quarter of 2018-19 from $0.7 billion a year ago.

In July-September this fiscal, there was a depletion of $1.9 billion of the foreign exchange reserves (on BoP basis) as against an accretion of $9.5 billion in the year-ago period.&nbsp;

India's current account deficit (CAD) widened to 2.9 per cent of the GDP in the second quarter of the fiscal compared to 1.1 per cent in the year-ago period, mainly due to a large trade deficit, the RBI said Friday.

India's current account deficit (CAD) widened to 2.9 per cent of the GDP in the second quarter of the fiscal compared to 1.1 per cent in the year-ago period, mainly due to a large trade deficit, the RBI said Friday. The CAD, or the difference between outflow and inflow of foreign exchange in the country's current account, was $19.1 billion during the quarter ended September 30, 2018. It increased from $6.9 billion or 1.1 per cent of GDP in the second quarter of 2017-18. The CAD stood at $15.9 billion (2.4 per cent of GDP) in the April-June quarter. "India's current account deficit (CAD) at US$ 19.1 billion (2.9 per cent of GDP) in Q2 of 2018-19 increased from US$ 6.9 billion (1.1 per cent of GDP) in Q2 of 2017-18 and US$ 15.9 billion (2.4 per cent of GDP) in the preceding quarter," the RBI said. The CAD has increased to 2.7 per cent of GDP in first half of 2018-19 from 1.8 per cent in the corresponding period of 2017-18 on the back of widening of the trade deficit. As per the central bank, the widening of the CAD on a year-on-year basis was primarily on account of a higher trade deficit at $50 billion as compared to $32.5 billion a year ago. RBI's preliminary data on India's balance of payments (BoP) for July-September 2018-19 further revealed that net services receipts increased by 10.2 per cent on a year-on-year basis, mainly on the back of a rise in net earnings from software and financial services. Private transfer receipts, mainly representing remittances by Indians employed overseas, amounted to $20.9 billion during the quarter, increasing by 19.8 per cent from their level a year ago. In the financial account, net foreign direct investment at $7.9 billion in the second quarter of 2018-19 moderated from $12.4 billion in the similar period of last fiscal. RBI said portfolio investment recorded net outflow of $1.6 billion as compared to an inflow of $2.1 billion in the second quarter last year on account of net sales in both the debt and equity markets. Further, net receipts on account of non-resident deposits increased to $3.3 billion in the second quarter of 2018-19 from $0.7 billion a year ago. In July-September this fiscal, there was a depletion of $1.9 billion of the foreign exchange reserves (on BoP basis) as against an accretion of $9.5 billion in the year-ago period.

Current account deficit widens to 2.9% of GDP in Q2

The Reserve Bank of India Wednesday left the repo rate unchanged while maintaining the stance of 'calibrated tightening' of policy.

The key rate remains unchanged at 6.5 per cent. This is for the second time in a row that the central bank did not tinker with the interest rate.

"The decision of the Monetary Policy Committee is consistent with the stance of calibrated tightening of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/-2 per cent, while supporting growth," RBI said.

The central bank also retained the GDP growth projection for FY19 at 7.4 per cent.&nbsp;

For the first half of 2019-20, the GDP growth has been projected at 7.5 per cent.

RBI said inflation in the second half of the current fiscal is projected at 2.7-3.2 per cent.

While the decision on keeping the policy rate unchanged was unanimous, Ravindra H Dholakia voted to change the stance to neutral.&nbsp;

The Reserve Bank of India Wednesday left the repo rate unchanged while maintaining the stance of 'calibrated tightening' of policy. The key rate remains unchanged at 6.

The Reserve Bank of India Wednesday left the repo rate unchanged while maintaining the stance of 'calibrated tightening' of policy. The key rate remains unchanged at 6.5 per cent. This is for the second time in a row that the central bank did not tinker with the interest rate. "The decision of the Monetary Policy Committee is consistent with the stance of calibrated tightening of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/-2 per cent, while supporting growth," RBI said. The central bank also retained the GDP growth projection for FY19 at 7.4 per cent. For the first half of 2019-20, the GDP growth has been projected at 7.5 per cent. RBI said inflation in the second half of the current fiscal is projected at 2.7-3.2 per cent. While the decision on keeping the policy rate unchanged was unanimous, Ravindra H Dholakia voted to change the stance to neutral.

RBI keeps repo rate unchanged at 6.5%, retains GDP growth projection at 7.4%

India recorded its<a href="http://www.wionews.com/india-news/indias-gdp-reaches-two-year-high-at-an-impressive-82-162739"> second quarter(Q2) GDP at</a> 7.1 per cent which was slower than the last quarter.

The latest figures show it was up from 6.3 per cent a year ago, however it was slower than the first quarter which recorded 8.2 per cent growth.

The growth rate of eight infrastructure sectors slowed down to 4.8 per cent in October due to contraction in the production of crude oil, natural gas and fertiliser. 
&nbsp; 
Eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity had grown by 5 per cent in October 2017.

Fertiliser production dropped sharply by 11.5 per cent, crude oil by 5 per cent and natural gas by 0.9 per cent in October over the year-ago month, according to the data released by the commerce and industry ministry on Friday.&nbsp;

The production of coal, cement and electricity, on the other hand, expanded in the month under review. 
&nbsp; 
During April-October 2018-19, the eight sectors recorded a growth rate of 5.4 per cent against 3.5 per cent in the same period last year.&nbsp;

The combined index of eight core industries stood at 134.8 in October 2018, which was 4.8 per cent higher as compared to the index of October 2017. The cumulative growth during April to October 2018-19 was 5.4 per cent.

India's $2.6 trillion economy, Asia's third largest, grew 6.3 per cent in the July-September quarter of 2017, the data released by the statistics ministry showed.

India had recored 7.9 per cent mark in the fourth quarter FY16, this time, however, it was lower than expected.

India recorded its second quarter(Q2) GDP at 7.1 per cent which was slower than the last quarter. The latest figures show it was up from 6.3 per cent a year ago, however it was slower than the first quarter which recorded 8.

India recorded its second quarter(Q2) GDP at 7.1 per cent which was slower than the last quarter. The latest figures show it was up from 6.3 per cent a year ago, however it was slower than the first quarter which recorded 8.2 per cent growth. The growth rate of eight infrastructure sectors slowed down to 4.8 per cent in October due to contraction in the production of crude oil, natural gas and fertiliser. Eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity had grown by 5 per cent in October 2017. Fertiliser production dropped sharply by 11.5 per cent, crude oil by 5 per cent and natural gas by 0.9 per cent in October over the year-ago month, according to the data released by the commerce and industry ministry on Friday. The production of coal, cement and electricity, on the other hand, expanded in the month under review. During April-October 2018-19, the eight sectors recorded a growth rate of 5.4 per cent against 3.5 per cent in the same period last year. The combined index of eight core industries stood at 134.8 in October 2018, which was 4.8 per cent higher as compared to the index of October 2017. The cumulative growth during April to October 2018-19 was 5.4 per cent. India's $2.6 trillion economy, Asia's third largest, grew 6.3 per cent in the July-September quarter of 2017, the data released by the statistics ministry showed. India had recored 7.9 per cent mark in the fourth quarter FY16, this time, however, it was lower than expected.

India's second quarter GDP slips to 7.1 per cent

The Congress Wednesday accused the Modi government of "manipulating" GDP data of previous years and said it reflects a desperate attempt to undermine India's growth story over the last 15 years.

Congress chief spokesperson Randeep Surjewala termed the step a "classic" case where "the operation is successful but the patient is dead".

"The entire GDP back series data released today reflects the desperate attempt of a defeatist Modi Government to undermine India's growth story over last 15 years. Modi Government and its puppet Niti Aayog want the people to believe that 2+2=8. Such is the gimmickry, jugglery, trickery and chicanery being sold as 'back series data'," he said in a statement.&nbsp;

There was no immediate reaction from the BJP on the Congress's claims and allegations.

The Congress leader said the economic mismanagement under the Modi government has led to economic anarchy and jugglery of GDP figures.

"Manipulated" back series data' will not change Modi government's "exit date'. (Prime Minister Narendra) Modiji's new definition of GDP is 'Gimmickry Data Product'," he said.

Surjewala alleged a failed "Modinomics plus a Pakoda economic vision" has put India's economy in complete turmoil, and the prime minister and his finance minister have caused economic "mayhem" by the "ill-conceived" decisions of demonetisation, a "flawed" GST coupled with "tax terrorism".

"Faced with utter and complete rejection of the 'voodoo economics' of the Modi-Jaitley duo, they are resorting to malicious and fraudulent jugglery of GDP figures to hide the enormous body blow caused by them to India's economy," he said.&nbsp;

Surjewala alleged that since the advent of the NDA government in May 2014, there has been a determined effort to run down the record of the two UPA governments under Manmohan Singh during 2004-2009 and 2009-2014.&nbsp;

A lot of confusion was sown and the Modi government added to the confusion by changing the base year from 2004-05 to 2011-12, he said.&nbsp;

The Congress leader said his party has repeatedly pointed out that when the base year was changed, the government should follow the healthy international practice and revise the numbers for the previous years.&nbsp;

"We had demanded that the back series data of GVA and GDP should be calculated and released so that meaningful comparisons can be made," he said, adding that the back series data as released by National Statistical Commission (NSC) in August 2018 is available in public domain and numbers prove that the truth cannot be suppressed.&nbsp;

The opposition leader claimed that UPA-1 and UPA-2 delivered the highest decadal growth of 8.13 per cent at factor cost since Independence and during this period 140 million people were lifted out of poverty.&nbsp;

When the UPA demitted office, economic growth had recovered to 6.39 per cent at market prices in 2013-14. Besides, the fiscal deficit had been reduced to 4.48 per cent and the current account deficit contained at 1.7 per cent, he claimed.

"The revised New Series' computed today by the Ministry of Statistics and Niti Aayog has completely undermined the NSC (National Statistical Commission), the autonomous body for deciding data transparently and in accordance with global standards of calculating GDP as per Market Price Linked Methodology.&nbsp;

"Today, the Modi government deceived the country by surreptitiously changing the methodology in order to manipulate GDP data. This is called 'Excel Sheet Management' in deciding the result first and filling the marks later. The new methodology is GVA based, which does not take into account tax+ subsidies and consequently is extremely flawed to subserve the myopic interests of the Modi government," he said.&nbsp;

Surjewala alleged that under this government, there has been complete stagnation in investment and the Gross Fixed Capital Formation in the last three years has remained constant at 28.5 per cent. "At that level of investment (GFCF), it is not possible to achieve higher growth rates," he said.

The government Wednesday lowered the country's economic growth rate during the previous Congress-led UPA regime, shaving off over one percentage point from the only year when India posted double-digit GDP growth post liberalisation and from each of the three years with 9-plus per cent expansion.

Recalibrating data of past years using 2011-12 as the base year instead of 2004-05, the Central Statistics Office (CSO) estimated that India's GDP grew by 8.5 per cent in the financial year 2010-11 (April 2010 to March 2011) and not at 10.3 per cent as previously estimated.

Similarly, 9.3 per cent growth rate each in 2005-06 and 2006-07 was lowered to 7.9 per cent and 8.1 per cent respectively, while 7.7 per cent rate was now estimated for 2007-08 instead of 9.8 per cent.

The revised growth numbers have been released ahead of the 2019 general elections.

The Congress Wednesday accused the Modi government of "manipulating" GDP data of previous years and said it reflects a desperate attempt to undermine India's growth story over the last 15 years.

The Congress Wednesday accused the Modi government of "manipulating" GDP data of previous years and said it reflects a desperate attempt to undermine India's growth story over the last 15 years. Congress chief spokesperson Randeep Surjewala termed the step a "classic" case where "the operation is successful but the patient is dead". "The entire GDP back series data released today reflects the desperate attempt of a defeatist Modi Government to undermine India's growth story over last 15 years. Modi Government and its puppet Niti Aayog want the people to believe that 2+2=8. Such is the gimmickry, jugglery, trickery and chicanery being sold as 'back series data'," he said in a statement. There was no immediate reaction from the BJP on the Congress's claims and allegations. The Congress leader said the economic mismanagement under the Modi government has led to economic anarchy and jugglery of GDP figures. "Manipulated" back series data' will not change Modi government's "exit date'. (Prime Minister Narendra) Modiji's new definition of GDP is 'Gimmickry Data Product'," he said. Surjewala alleged a failed "Modinomics plus a Pakoda economic vision" has put India's economy in complete turmoil, and the prime minister and his finance minister have caused economic "mayhem" by the "ill-conceived" decisions of demonetisation, a "flawed" GST coupled with "tax terrorism". "Faced with utter and complete rejection of the 'voodoo economics' of the Modi-Jaitley duo, they are resorting to malicious and fraudulent jugglery of GDP figures to hide the enormous body blow caused by them to India's economy," he said. Surjewala alleged that since the advent of the NDA government in May 2014, there has been a determined effort to run down the record of the two UPA governments under Manmohan Singh during 2004-2009 and 2009-2014. A lot of confusion was sown and the Modi government added to the confusion by changing the base year from 2004-05 to 2011-12, he said. The Congress leader said his party has repeatedly pointed out that when the base year was changed, the government should follow the healthy international practice and revise the numbers for the previous years. "We had demanded that the back series data of GVA and GDP should be calculated and released so that meaningful comparisons can be made," he said, adding that the back series data as released by National Statistical Commission (NSC) in August 2018 is available in public domain and numbers prove that the truth cannot be suppressed. The opposition leader claimed that UPA-1 and UPA-2 delivered the highest decadal growth of 8.13 per cent at factor cost since Independence and during this period 140 million people were lifted out of poverty. When the UPA demitted office, economic growth had recovered to 6.39 per cent at market prices in 2013-14. Besides, the fiscal deficit had been reduced to 4.48 per cent and the current account deficit contained at 1.7 per cent, he claimed. "The revised New Series' computed today by the Ministry of Statistics and Niti Aayog has completely undermined the NSC (National Statistical Commission), the autonomous body for deciding data transparently and in accordance with global standards of calculating GDP as per Market Price Linked Methodology. "Today, the Modi government deceived the country by surreptitiously changing the methodology in order to manipulate GDP data. This is called 'Excel Sheet Management' in deciding the result first and filling the marks later. The new methodology is GVA based, which does not take into account tax+ subsidies and consequently is extremely flawed to subserve the myopic interests of the Modi government," he said. Surjewala alleged that under this government, there has been complete stagnation in investment and the Gross Fixed Capital Formation in the last three years has remained constant at 28.5 per cent. "At that level of investment (GFCF), it is not possible to achieve higher growth rates," he said. The government Wednesday lowered the country's economic growth rate during the previous Congress-led UPA regime, shaving off over one percentage point from the only year when India posted double-digit GDP growth post liberalisation and from each of the three years with 9-plus per cent expansion. Recalibrating data of past years using 2011-12 as the base year instead of 2004-05, the Central Statistics Office (CSO) estimated that India's GDP grew by 8.5 per cent in the financial year 2010-11 (April 2010 to March 2011) and not at 10.3 per cent as previously estimated. Similarly, 9.3 per cent growth rate each in 2005-06 and 2006-07 was lowered to 7.9 per cent and 8.1 per cent respectively, while 7.7 per cent rate was now estimated for 2007-08 instead of 9.8 per cent. The revised growth numbers have been released ahead of the 2019 general elections.

Modi government manipulating GDP data of previous years: Congress

Finance Minister Arun Jaitley Thursday jumped to defend the <a href="http://www.wionews.com/india-news/ahead-of-2019-polls-govt-slashes-gdp-growth-rates-during-upa-era-180147">revision in India's GDP growth rate</a> during the previous UPA era, saying the Central Statistics Office (CSO), which came out with the revised numbers, was a credible organisation and maintains arm's length distance from the finance ministry.

A day after Chief Statistician Pravin Srivastava, in an unusual move, announced the revised numbers based on back series data alongside Niti Aayog vice chairman Rajiv Kumar, Jaitley said, "I don't think any service is being rendered by those who discredit the highly credible organisation, CSO."

Former Finance Minister P Chidambaram had Wednesday called the revision a "bad joke."

"Niti Aayog's revised GDP numbers are a joke. They are a bad joke," he had tweeted. "Actually they are worse than a bad joke. The numbers are the result of a hatchet job."

Jaitley said when the CSO had revised upward the growth rate of 2012-13 and 2013-14, the then government had welcomed the decision.

The same yardstick has been applied by the CSO while revising the growth downwards, he said.

Just months before the general elections, the country's economic growth rate during the previous<a href="http://www.wionews.com/india-news/modi-government-manipulating-gdp-data-of-previous-years-congress-180145"> Congress-led UPA</a> regime was lowered Wednesday, shaving off over 1 percentage point from the only year when India posted double-digit GDP growth post liberalisation and from each of the three years with 9-plus per cent expansion.

Recalibrating data of past years using 2011-12 as the base year instead of 2004-05, the CSO estimated that India's GDP grew by 8.5 per cent in the financial year 2010-11 (April 2010 to March 2011) and not at 10.3 per cent as previously estimated.

Similarly, 9.3 per cent growth rate each in 2005-06 and 2006-07 was lowered to 7.9 per cent and 8.1 per cent, respectively, while 7.7 per cent rate was now estimated for 2007-08 instead of 9.8 per cent.

Chidambaram had called the revision a "hatchet job" by Niti Aayog.

"Now that Niti Aayog has done the hatchet job, it is time to wind up the utterly worthless body," he had tweeted. "The earlier numbers were calculated by the National Statistical Commission. Has the commission been disbanded?"

"Former Chief Statistician Pranab Sen is absolutely correct. Niti Aayog has nothing to do with tabulation of data," he had said. "I wonder if Niti Aayog Vice Chairman Rajiv Kumar will agree to a debate the data than telling journalists that their questions are "undeserving of an answer", he said.

Finance Minister Arun Jaitley Thursday jumped to defend the revision in India's GDP growth rate during the previous UPA era, saying the Central Statistics Office (CSO), which came out with the revised numbers, was a credible organisation and maintains arm's length distance from the finance ministry.

Finance Minister Arun Jaitley Thursday jumped to defend the revision in India's GDP growth rate during the previous UPA era, saying the Central Statistics Office (CSO), which came out with the revised numbers, was a credible organisation and maintains arm's length distance from the finance ministry. A day after Chief Statistician Pravin Srivastava, in an unusual move, announced the revised numbers based on back series data alongside Niti Aayog vice chairman Rajiv Kumar, Jaitley said, "I don't think any service is being rendered by those who discredit the highly credible organisation, CSO." Former Finance Minister P Chidambaram had Wednesday called the revision a "bad joke." "Niti Aayog's revised GDP numbers are a joke. They are a bad joke," he had tweeted. "Actually they are worse than a bad joke. The numbers are the result of a hatchet job." Jaitley said when the CSO had revised upward the growth rate of 2012-13 and 2013-14, the then government had welcomed the decision. The same yardstick has been applied by the CSO while revising the growth downwards, he said. Just months before the general elections, the country's economic growth rate during the previous Congress-led UPA regime was lowered Wednesday, shaving off over 1 percentage point from the only year when India posted double-digit GDP growth post liberalisation and from each of the three years with 9-plus per cent expansion. Recalibrating data of past years using 2011-12 as the base year instead of 2004-05, the CSO estimated that India's GDP grew by 8.5 per cent in the financial year 2010-11 (April 2010 to March 2011) and not at 10.3 per cent as previously estimated. Similarly, 9.3 per cent growth rate each in 2005-06 and 2006-07 was lowered to 7.9 per cent and 8.1 per cent, respectively, while 7.7 per cent rate was now estimated for 2007-08 instead of 9.8 per cent. Chidambaram had called the revision a "hatchet job" by Niti Aayog. "Now that Niti Aayog has done the hatchet job, it is time to wind up the utterly worthless body," he had tweeted. "The earlier numbers were calculated by the National Statistical Commission. Has the commission been disbanded?" "Former Chief Statistician Pranab Sen is absolutely correct. Niti Aayog has nothing to do with tabulation of data," he had said. "I wonder if Niti Aayog Vice Chairman Rajiv Kumar will agree to a debate the data than telling journalists that their questions are "undeserving of an answer", he said.

Arun Jaitley defends revised GDP numbers for UPA era, says CSO credible organistaion

At a time when policymakers are grappling on how to reduce inequalities, a wealth report Tuesday said there has been a 34 per cent increase in the number of Indians having a net worth of Rs 1,000 crore or more.

Significantly, these individuals who number 831, collectively own a quarter of the nation's GDP with a net worth of $719 billion, says the report, which quotes the IMF April 2018 data pegs GDP at $2.85 trillion.

Led by Reliance Industries chairman Mukesh Ambani with a net worth of Rs 3.71 trillion, there were 831 Indians having a net worth of Rs 1,000 crore or more in 2018, which is 214 individuals more than the 2017 list, according to a Barclays- Hurun India rich list.

In a January 2018 report presented by Oxfam at the World Economic Forum, had expressed concern on the rising inequalities, stating that 1 per cent of the country's population holds 73 per cent of the wealth.

The financial capital, which presents stark contrasts like housing the largest slums in the continent as also costliest mansions like Ambani's Antilla, has the highest number of contributors to the rich list, with 233 rich, followed by 163 in the national Capital and 70 in Bengaluru.

Anas Rahman Junaid, managing director and chief researcher at Hurun India says the country is the fastest growing when it comes to people entering the rich list.

"The number of Rs 1,000 crore-plus wealthy Indians have nearly doubled in the past two years-from 339 in 2016 to 831 in 2018," he said.

From a demographic perspective, the average age on the list is 60, the 24-year-old Ritesh Agarwal of Oravel Stays which runs Oyo Rooms, being the youngest and 95-year-old Dharam Pal Gulati of the masala brand MDH being the eldest.

There was a massive, 157 per cent spike in the number of women on the list, which grew to 136.

Pharma sector promoters/executives dominate the list with a 13.7 per cent occupancy, followed by software and services at 7.9 per cent and fast moving consumer goods at 6.4 per cent.

Nine individuals on the list saw a doubling of wealth in 2018, with Krishna Kumar Bangur of Graphite India being the biggest gainer with a 430 per cent jump in his personal fortunes.

At a time when policymakers are grappling on how to reduce inequalities, a wealth report Tuesday said there has been a 34 per cent increase in the number of Indians having a net worth of Rs 1,000 crore or more.

At a time when policymakers are grappling on how to reduce inequalities, a wealth report Tuesday said there has been a 34 per cent increase in the number of Indians having a net worth of Rs 1,000 crore or more. Significantly, these individuals who number 831, collectively own a quarter of the nation's GDP with a net worth of $719 billion, says the report, which quotes the IMF April 2018 data pegs GDP at $2.85 trillion. Led by Reliance Industries chairman Mukesh Ambani with a net worth of Rs 3.71 trillion, there were 831 Indians having a net worth of Rs 1,000 crore or more in 2018, which is 214 individuals more than the 2017 list, according to a Barclays- Hurun India rich list. In a January 2018 report presented by Oxfam at the World Economic Forum, had expressed concern on the rising inequalities, stating that 1 per cent of the country's population holds 73 per cent of the wealth. The financial capital, which presents stark contrasts like housing the largest slums in the continent as also costliest mansions like Ambani's Antilla, has the highest number of contributors to the rich list, with 233 rich, followed by 163 in the national Capital and 70 in Bengaluru. Anas Rahman Junaid, managing director and chief researcher at Hurun India says the country is the fastest growing when it comes to people entering the rich list. "The number of Rs 1,000 crore-plus wealthy Indians have nearly doubled in the past two years-from 339 in 2016 to 831 in 2018," he said. From a demographic perspective, the average age on the list is 60, the 24-year-old Ritesh Agarwal of Oravel Stays which runs Oyo Rooms, being the youngest and 95-year-old Dharam Pal Gulati of the masala brand MDH being the eldest. There was a massive, 157 per cent spike in the number of women on the list, which grew to 136. Pharma sector promoters/executives dominate the list with a 13.7 per cent occupancy, followed by software and services at 7.9 per cent and fast moving consumer goods at 6.4 per cent. Nine individuals on the list saw a doubling of wealth in 2018, with Krishna Kumar Bangur of Graphite India being the biggest gainer with a 430 per cent jump in his personal fortunes.

Led by Mukesh Ambani, richest 831 collectively own a quarter of India's GDP

Moody's Investors Service today cut India's 2018 growth forecast to 7.3 per cent from the previous estimate of 7.5 per cent, saying the economy is in cyclical recovery but higher oil prices and tighter financial conditions will weigh on the pace of acceleration.

Moody's, however, maintained its 2019 growth forecast at 7.5 per cent.

"The Indian economy is in cyclical recovery led by both investment and consumption. However, higher oil prices and tighter financial conditions will weigh on the pace of acceleration.

"We expect GDP growth of about 7.3 per cent in 2018, down from our previous forecast of 7.5 per cent. Our growth expectation for 2019 remains unchanged at 7.5 per cent," it said in an update of its 'Global Macro Outlook: 2018-19'.

Moody's said growth should benefit from an acceleration in rural consumption, supported by higher minimum support prices and a normal monsoon.

"The private investment cycle will continue to make a gradual recovery, as twin balance-sheet issues - impaired assets at banks and corporates - slowly get addressed through deleveraging and the application of the Insolvency and Bankruptcy Code," it said.

Also, the ongoing transition to the new Goods and Service Tax regime could weigh on growth somewhat over the next few quarters, which poses some downside risk to the forecast, it said. "However, we expect these issues to moderate over the course of the year."

For the world economy, Moody's expected 2018 to be a year of robust global growth, similar to 2017.

"However, global growth will likely moderate by the end of 2018 and in 2019 as a result of a number of advanced economies reaching full employment, and because of rising borrowing costs and tighter credit conditions in both advanced and emerging market countries that will hamper further acceleration," it said.

The G-20 countries, it said, will grow 3.3 per cent in 2018 and 3.2 per cent in 2019. The advanced economies will grow at a moderate 2.3 per cent in 2018 and 2.0 per cent in 2019, while G-20 emerging markets will remain the growth drivers, at 5.2 per cent in both 2018 and 2019, down from 5.3 per cent in 2017.

Moody's said downside risks to growth stem from emerging markets turmoil, oil price increases and trade disputes.

"The ongoing financial market turbulence in emerging market countries poses risks of a broader negative spillover effect on growth for a range of countries beyond Argentina and Turkey, while there is a risk that high oil prices will be detrimental to consumption demand. A re-escalation of trade tensions between the US and China is another risk factor to growth. Political concerns add to downside risks in Brazil, Mexico and Italy," it said.

"Overall, we expect 2018 to be a year of robust global growth, similar to 2017," according to Moody's VP Senior Credit Officer Madhavi Bokil.&nbsp;

"The ongoing financial market turbulence in emerging market countries poses risks of a broader negative spillover effect on growth for a range of countries beyond Argentina and Turkey, while there is a risk that high oil prices will weigh on purchasing power and present an upside risk to inflation. A re-escalation of trade tensions between the US and China is another risk factor to growth."

The outlook for global monetary policy is broadly unchanged with the US Federal Reserve on a predictable and gradual tightening monetary policy path. Three additional increases in the US federal funds rate this year is expected to be followed by three more hikes in 2019.

The European Central Bank will likely stop additional asset purchases by year-end and start increasing the deposit facility rate in the first half of 2019. The Bank of Japan will maintain its current monetary policy over the next two years.

"Rising interest rates and currency depreciation reinforces Moody's view central banks in emerging market countries will not be able to provide monetary policy accommodation for much longer," Bokil says.

Moody's said growth should benefit from an acceleration in rural consumption, supported by higher minimum support prices and a normal monsoon

Moody's Investors Service today cut India's 2018 growth forecast to 7.3 per cent from the previous estimate of 7.5 per cent, saying the economy is in cyclical recovery but higher oil prices and tighter financial conditions will weigh on the pace of acceleration. Moody's, however, maintained its 2019 growth forecast at 7.5 per cent. "The Indian economy is in cyclical recovery led by both investment and consumption. However, higher oil prices and tighter financial conditions will weigh on the pace of acceleration. "We expect GDP growth of about 7.3 per cent in 2018, down from our previous forecast of 7.5 per cent. Our growth expectation for 2019 remains unchanged at 7.5 per cent," it said in an update of its 'Global Macro Outlook: 2018-19'. Moody's said growth should benefit from an acceleration in rural consumption, supported by higher minimum support prices and a normal monsoon. "The private investment cycle will continue to make a gradual recovery, as twin balance-sheet issues - impaired assets at banks and corporates - slowly get addressed through deleveraging and the application of the Insolvency and Bankruptcy Code," it said. Also, the ongoing transition to the new Goods and Service Tax regime could weigh on growth somewhat over the next few quarters, which poses some downside risk to the forecast, it said. "However, we expect these issues to moderate over the course of the year." For the world economy, Moody's expected 2018 to be a year of robust global growth, similar to 2017. "However, global growth will likely moderate by the end of 2018 and in 2019 as a result of a number of advanced economies reaching full employment, and because of rising borrowing costs and tighter credit conditions in both advanced and emerging market countries that will hamper further acceleration," it said. The G-20 countries, it said, will grow 3.3 per cent in 2018 and 3.2 per cent in 2019. The advanced economies will grow at a moderate 2.3 per cent in 2018 and 2.0 per cent in 2019, while G-20 emerging markets will remain the growth drivers, at 5.2 per cent in both 2018 and 2019, down from 5.3 per cent in 2017. Moody's said downside risks to growth stem from emerging markets turmoil, oil price increases and trade disputes. "The ongoing financial market turbulence in emerging market countries poses risks of a broader negative spillover effect on growth for a range of countries beyond Argentina and Turkey, while there is a risk that high oil prices will be detrimental to consumption demand. A re-escalation of trade tensions between the US and China is another risk factor to growth. Political concerns add to downside risks in Brazil, Mexico and Italy," it said. "Overall, we expect 2018 to be a year of robust global growth, similar to 2017," according to Moody's VP Senior Credit Officer Madhavi Bokil. "The ongoing financial market turbulence in emerging market countries poses risks of a broader negative spillover effect on growth for a range of countries beyond Argentina and Turkey, while there is a risk that high oil prices will weigh on purchasing power and present an upside risk to inflation. A re-escalation of trade tensions between the US and China is another risk factor to growth." The outlook for global monetary policy is broadly unchanged with the US Federal Reserve on a predictable and gradual tightening monetary policy path. Three additional increases in the US federal funds rate this year is expected to be followed by three more hikes in 2019. The European Central Bank will likely stop additional asset purchases by year-end and start increasing the deposit facility rate in the first half of 2019. The Bank of Japan will maintain its current monetary policy over the next two years. "Rising interest rates and currency depreciation reinforces Moody's view central banks in emerging market countries will not be able to provide monetary policy accommodation for much longer," Bokil says.

Moody's cuts India's 2018 growth forecast to 7.3% from 7.5%

Global credit rating agency Fitch today affirmed India's sovereign rating at 'BBB-' with 'stable' outlook, saying that the country's medium-term growth potential is strong.

'BBB-' rating indicates lowest investment grade.

'India's rating balances a strong medium-term growth outlook and favourable external balances with weak fiscal finances and some lagging structural factors, including governance standards and a still-difficult, but improving, business environment," Fitch said.

It projected India's growth at 7.3 per cent in current the fiscal and further to 7.5 per cent in 2019-20. Growth is projected to be 6.7 per cent in the last fiscal, ended March 31.

"The Stable Outlook reflects Fitch's assessment that upside and downside risks to the ratings are broadly balanced," Fitch said.

The Fitch review for annual sovereign rating follows India's rating upgrade by Moody's after a gap of 14 years. S&P had retained the earlier rating.

Fitch said India's fiscal finances are weak but current account deficit position is favourable.

Per capita GDP is the lowest among 'BBB' range peers and continued structural reform implementation should enhance productivity.

"India has the highest medium-term growth potential among the largest emerging markets," according to Fitch analysis.

Fitch has kept rating unchanged at 'BBB-', the lowest investment grade, with stable outlook. The rating was assigned to the country 11 years ago.

Fitch had last upgraded the rating from 'BB+' to 'BBB-' with stable outlook on August 1, 2006. Later, it changed the outlook to negative in 2012 and then again to stable in the following year, though it kept the rating unchanged at the lowest investment grade.

'BBB-' rating indicates lowest investment grade.

Global credit rating agency Fitch today affirmed India's sovereign rating at 'BBB-' with 'stable' outlook, saying that the country's medium-term growth potential is strong. 'BBB-' rating indicates lowest investment grade. 'India's rating balances a strong medium-term growth outlook and favourable external balances with weak fiscal finances and some lagging structural factors, including governance standards and a still-difficult, but improving, business environment," Fitch said. It projected India's growth at 7.3 per cent in current the fiscal and further to 7.5 per cent in 2019-20. Growth is projected to be 6.7 per cent in the last fiscal, ended March 31. "The Stable Outlook reflects Fitch's assessment that upside and downside risks to the ratings are broadly balanced," Fitch said. The Fitch review for annual sovereign rating follows India's rating upgrade by Moody's after a gap of 14 years. S&P had retained the earlier rating. Fitch said India's fiscal finances are weak but current account deficit position is favourable. Per capita GDP is the lowest among 'BBB' range peers and continued structural reform implementation should enhance productivity. "India has the highest medium-term growth potential among the largest emerging markets," according to Fitch analysis. Fitch has kept rating unchanged at 'BBB-', the lowest investment grade, with stable outlook. The rating was assigned to the country 11 years ago. Fitch had last upgraded the rating from 'BB+' to 'BBB-' with stable outlook on August 1, 2006. Later, it changed the outlook to negative in 2012 and then again to stable in the following year, though it kept the rating unchanged at the lowest investment grade.

India's medium-term growth potential is strong: Fitch

India is poised to remain the fastest growing large economy in the world and its GDP is expected to reach US $5 trillion by 2025 as the economic reforms adopted in the last few years have started to bear fruit, a top Indian official has told the World Bank.

Giving an overview of the South Asian countries - Bhutan, Nepal, Bangladesh and Sri Lanka - Economic Affairs Secretary Subhash Chandra Garg said India continued to be a beacon of growth in the region.

"India is poised to remain as the fastest growing large economy in the world. In 2018, we expect India to grow at over 7.4 per cent," Mr Garg told the 97th meeting of the Development Committee of the World Bank in Washington yesterday.

Transformational reforms such as Goods and Services Tax (GST) and initiatives such as Insolvency and Bankruptcy code, recapitalisation of banks, and unclogging of infrastructure investments will support such elevated growth, he told the World Bank.

"In the last few years, India has undertaken massive structural reforms toward formalisation of the economy and fostering digital financial inclusion," he said, adding that the country had grown at an average of 7.2 per cent per annum in the last four years and was continuing on the trajectory of sustained growth.

"India's GDP is expected to reach a volume of US $5 trillion by FY2025 by leveraging on digitisation, globalisation, favourable demographics and structural reforms," Mr Garg added.

In the absence of Union Finance Minister Arun Jaitley, Mr Garg is leading the Indian delegation for the annual Spring Meeting of the International Monetary Fund and the World Bank.

India, he said, has accorded top priority to addressing its infrastructure deficit to sustain economic growth. Steps have been taken to mobilise funds from various sources for development of infrastructure which includes, inter alia, launching of innovative financial vehicles, he added.

India has begun undertaking a major programme of monetising brown field assets of Central Public Sector Undertakings (CPSUs) as a separate asset class for infrastructure investments, Mr Garg said.&nbsp;

"In the field of digitisation, India has completed the ambitious task of connecting 100,000 gram panchayats through high speed optical fibre network under phase-I of the Bharat Net project," he said, adding that it has enabled broadband access to over 200 million Indians living in about 250,000 villages.

The government also proposes to setup 500,000 wi-fi hotspots which will provide broadband access to 50 million rural citizens, Mr Garg said.

Around 470 Agricultural Produce Market Committees (APMCs) have been connected to the electronic National Agriculture Market (e-NAM) network providing a unified national market for agricultural commodities, he added.

Mr Garg told the World Bank that one of the key features of India's economic performance in recent years has been the speed and scale of implementation of reforms.

"Recent upgrade of the sovereign rating reflects India's strength, speed and scale of these ongoing reforms," he said.

Noting that India rolled out the GST in July 2017, Mr Garg said within a short span of eight months, monthly earnings from GST have crossed US $12.7 billion.&nbsp;

The number of dealers registered in the GST database increased by about four million in the fiscal year of the roll-out which is about 60 per cent higher than unique assesses registered earlier in the VAT network in the country.

India's massive leap in the Ease of Doing Business rankings from 142 in 2014 to 100 in 2017 is testimony to India's commitment to long-term reforms for an open and vibrant economy. This is also reflected in strong FDI inflows which have grown from US $34.3 billion in 2012-13 to US $60.1 billion in 2016-17, he added.&nbsp;

In the arena of financial inclusion, the Jan-Dhan Yojana, launched in August, 2014, has rapidly expanded banking services for the hitherto deprived sections, he said. Till date, over 313 million bank accounts have been opened and savings of about US $11.510 billion has been mobilised under the scheme, Garg said.

For providing access to financial facilities by small businesses, India rolled out the Mudra Yojana in April 2015 and had supported over 115 million small businesses by sanctioning loans of US $77.66 billion so far, he claimed.

Noting that India is pursuing a path of clean and climate responsible growth, Mr Garg said the country aimed to achieve about 40 per cent cumulative installed power capacity from non-fossil fuel based energy resources by 2030 with the help of transfer of technology and low cost international finance. 
&nbsp;

Giving an overview of the South Asian countries - Bhutan, Nepal, Bangladesh and Sri Lanka - Economic Affairs Secretary Subhash Chandra Garg said India continued to be a beacon of growth in the region

India is poised to remain the fastest growing large economy in the world and its GDP is expected to reach US $5 trillion by 2025 as the economic reforms adopted in the last few years have started to bear fruit, a top Indian official has told the World Bank. Giving an overview of the South Asian countries - Bhutan, Nepal, Bangladesh and Sri Lanka - Economic Affairs Secretary Subhash Chandra Garg said India continued to be a beacon of growth in the region. "India is poised to remain as the fastest growing large economy in the world. In 2018, we expect India to grow at over 7.4 per cent," Mr Garg told the 97th meeting of the Development Committee of the World Bank in Washington yesterday. Transformational reforms such as Goods and Services Tax (GST) and initiatives such as Insolvency and Bankruptcy code, recapitalisation of banks, and unclogging of infrastructure investments will support such elevated growth, he told the World Bank. "In the last few years, India has undertaken massive structural reforms toward formalisation of the economy and fostering digital financial inclusion," he said, adding that the country had grown at an average of 7.2 per cent per annum in the last four years and was continuing on the trajectory of sustained growth. "India's GDP is expected to reach a volume of US $5 trillion by FY2025 by leveraging on digitisation, globalisation, favourable demographics and structural reforms," Mr Garg added. In the absence of Union Finance Minister Arun Jaitley, Mr Garg is leading the Indian delegation for the annual Spring Meeting of the International Monetary Fund and the World Bank. India, he said, has accorded top priority to addressing its infrastructure deficit to sustain economic growth. Steps have been taken to mobilise funds from various sources for development of infrastructure which includes, inter alia, launching of innovative financial vehicles, he added. India has begun undertaking a major programme of monetising brown field assets of Central Public Sector Undertakings (CPSUs) as a separate asset class for infrastructure investments, Mr Garg said. "In the field of digitisation, India has completed the ambitious task of connecting 100,000 gram panchayats through high speed optical fibre network under phase-I of the Bharat Net project," he said, adding that it has enabled broadband access to over 200 million Indians living in about 250,000 villages. The government also proposes to setup 500,000 wi-fi hotspots which will provide broadband access to 50 million rural citizens, Mr Garg said. Around 470 Agricultural Produce Market Committees (APMCs) have been connected to the electronic National Agriculture Market (e-NAM) network providing a unified national market for agricultural commodities, he added. Mr Garg told the World Bank that one of the key features of India's economic performance in recent years has been the speed and scale of implementation of reforms. "Recent upgrade of the sovereign rating reflects India's strength, speed and scale of these ongoing reforms," he said. Noting that India rolled out the GST in July 2017, Mr Garg said within a short span of eight months, monthly earnings from GST have crossed US $12.7 billion. The number of dealers registered in the GST database increased by about four million in the fiscal year of the roll-out which is about 60 per cent higher than unique assesses registered earlier in the VAT network in the country. India's massive leap in the Ease of Doing Business rankings from 142 in 2014 to 100 in 2017 is testimony to India's commitment to long-term reforms for an open and vibrant economy. This is also reflected in strong FDI inflows which have grown from US $34.3 billion in 2012-13 to US $60.1 billion in 2016-17, he added. In the arena of financial inclusion, the Jan-Dhan Yojana, launched in August, 2014, has rapidly expanded banking services for the hitherto deprived sections, he said. Till date, over 313 million bank accounts have been opened and savings of about US $11.510 billion has been mobilised under the scheme, Garg said. For providing access to financial facilities by small businesses, India rolled out the Mudra Yojana in April 2015 and had supported over 115 million small businesses by sanctioning loans of US $77.66 billion so far, he claimed. Noting that India is pursuing a path of clean and climate responsible growth, Mr Garg said the country aimed to achieve about 40 per cent cumulative installed power capacity from non-fossil fuel based energy resources by 2030 with the help of transfer of technology and low cost international finance.

India's GDP expected to reach US $5 trillion by 2025

Proper implementation of the Goods and Services Tax (GST) in India can be worked upon and is not an "unfixable problem", former RBI governor Raghuram Rajan has said, reiterating that demonetisation was "not a well-planned, well thought-out" move.

With the Modi government bringing in ambitious reforms like GST and demonetisation, Rajan said it would be good if such measures were better implemented.

"On the Goods and Services Tax, we will figure it out eventually. It will be nice if we could implement much better than we do. But it's (GST) not an unfixable problem. We can work on it. I wouldn't give up hope at this point on that," Rajan told an audience at the Harvard Kennedy School in Cambridge yesterday.

Rajan, who is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at The University of Chicago's Booth School of Business, gave the 2018 Albert H Gordon Lecture on the topic 'Leverage, Financial Crises, and Policies to Raise Economic Growth'. He was asked about the "shoddy implementation" of big-ticket reforms like GST and demonetisation in India.

On demonetisation, Rajan rejected the claim that the Reserve Bank of India had not been consulted by the government before it went on to declare 1,000 and 500-rupee currency notes as illegal tender in November 2016. He however reiterated that the move to cancel 87.5 per cent of the currency value was "not a good idea".

"I didn't ever say that I wasn't consulted (on demonetisation). In fact, I have made it quite clear that we were consulted and we didn't think it was a good idea," Rajan said.

He said demonetisation "was not a well-planned, well thought-out, useful exercise and I told the government that when the idea was first mooted," he said adding that any macro-economist would say that if 87.5 per cent of the currency is being demonetised, then it better be made sure that a similar amount of currency is printed and ready to be put back in circulation.

"India went into it without having done that. It had a negative economic impact but also the idea was that somehow people who had money stored in their basements without having paid taxes on it would overnight see religion and come to the government and say 'sorry we were hiding this stuff, let me pay taxes on it'," Rajan said, calling it a "naive view".

"Anybody who knows India, knows that very quickly we find ways around the system," he said adding that with "essentially" all the money that was demonetised coming back into the system, the exercise did not have the direct effect that was sought.

While the longer term impact of demonetisation is yet to be seen, its negative economic impact included people not having currency, not being able to pay and economic activity plummeting especially in the informal sector. 
 
"There may be some longer term impact that people think that if this sort of thing happens then the government is serious about collecting taxes. There may be greater tax payments but we still have to see strong evidence that that is true," he said.

Rajan also expressed concern that a lot of people probably lost their jobs due to demonetisation but that has not been counted well as it would be mostly in the informal sector.

"The positive impacts (of demonetisation) are out there in the future. We have no idea whether they will be important. To my mind it was not a policy that was useful at that time," he said.

To a suggestion that demonetisation could have positively impacted growth, Rajan said "you would have to find a new economic theory to explain how it helped the economy".

He said most estimates of the cost of demonetisation vary between 1.5-2 per cent of the GDP.

"It would be a really die-hard government advocate who would say that the growth benefits of demonetisation were immediate," he said.

"Most of the supporters of the move would say that the benefits of the move are coming by changing the incentive to pay taxes. I would say yes, we will have to wait and see whether that in fact is true," he said.

On the problem of non-performing assets and making a reference to the Nirav Modi-PNB scandal, Rajan said it is worrisome that some Indian banks have antiquated systems.

A part of the Punjab National Bank scam was cyber-related and there is a need to go into the details of how the fraud came to be, he said.

"It turns out that we don't need to be really clever in the Indian system to make away with a billion dollars. Some of these banks have antiquated systems also....Your worry is that the systems are not adequate to prevent rogue dealers, rogue employees colluding and making off with stuff. That is the fraud part," he said.

He added that bad loans do not necessarily come from fraud, they come from "irrational exuberance".

 
&nbsp

Proper implementation of the Goods and Services Tax (GST) in India can be worked upon and is not an 'unfixable problem', former RBI governor Raghuram Rajan has said, reiterating that demonetisation was 'not a well-planned, well thought-out' move

Proper implementation of the Goods and Services Tax (GST) in India can be worked upon and is not an "unfixable problem", former RBI governor Raghuram Rajan has said, reiterating that demonetisation was "not a well-planned, well thought-out" move. With the Modi government bringing in ambitious reforms like GST and demonetisation, Rajan said it would be good if such measures were better implemented. "On the Goods and Services Tax, we will figure it out eventually. It will be nice if we could implement much better than we do. But it's (GST) not an unfixable problem. We can work on it. I wouldn't give up hope at this point on that," Rajan told an audience at the Harvard Kennedy School in Cambridge yesterday. Rajan, who is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at The University of Chicago's Booth School of Business, gave the 2018 Albert H Gordon Lecture on the topic 'Leverage, Financial Crises, and Policies to Raise Economic Growth'. He was asked about the "shoddy implementation" of big-ticket reforms like GST and demonetisation in India. On demonetisation, Rajan rejected the claim that the Reserve Bank of India had not been consulted by the government before it went on to declare 1,000 and 500-rupee currency notes as illegal tender in November 2016. He however reiterated that the move to cancel 87.5 per cent of the currency value was "not a good idea". "I didn't ever say that I wasn't consulted (on demonetisation). In fact, I have made it quite clear that we were consulted and we didn't think it was a good idea," Rajan said. He said demonetisation "was not a well-planned, well thought-out, useful exercise and I told the government that when the idea was first mooted," he said adding that any macro-economist would say that if 87.5 per cent of the currency is being demonetised, then it better be made sure that a similar amount of currency is printed and ready to be put back in circulation. "India went into it without having done that. It had a negative economic impact but also the idea was that somehow people who had money stored in their basements without having paid taxes on it would overnight see religion and come to the government and say 'sorry we were hiding this stuff, let me pay taxes on it'," Rajan said, calling it a "naive view". "Anybody who knows India, knows that very quickly we find ways around the system," he said adding that with "essentially" all the money that was demonetised coming back into the system, the exercise did not have the direct effect that was sought. While the longer term impact of demonetisation is yet to be seen, its negative economic impact included people not having currency, not being able to pay and economic activity plummeting especially in the informal sector. "There may be some longer term impact that people think that if this sort of thing happens then the government is serious about collecting taxes. There may be greater tax payments but we still have to see strong evidence that that is true," he said. Rajan also expressed concern that a lot of people probably lost their jobs due to demonetisation but that has not been counted well as it would be mostly in the informal sector. "The positive impacts (of demonetisation) are out there in the future. We have no idea whether they will be important. To my mind it was not a policy that was useful at that time," he said. To a suggestion that demonetisation could have positively impacted growth, Rajan said "you would have to find a new economic theory to explain how it helped the economy". He said most estimates of the cost of demonetisation vary between 1.5-2 per cent of the GDP. "It would be a really die-hard government advocate who would say that the growth benefits of demonetisation were immediate," he said. "Most of the supporters of the move would say that the benefits of the move are coming by changing the incentive to pay taxes. I would say yes, we will have to wait and see whether that in fact is true," he said. On the problem of non-performing assets and making a reference to the Nirav Modi-PNB scandal, Rajan said it is worrisome that some Indian banks have antiquated systems. A part of the Punjab National Bank scam was cyber-related and there is a need to go into the details of how the fraud came to be, he said. "It turns out that we don't need to be really clever in the Indian system to make away with a billion dollars. Some of these banks have antiquated systems also....Your worry is that the systems are not adequate to prevent rogue dealers, rogue employees colluding and making off with stuff. That is the fraud part," he said. He added that bad loans do not necessarily come from fraud, they come from "irrational exuberance".

Implementation of GST not 'unfixable' problem: Ex RBI governor Raghuram Rajan

Manila-based <a href="http://www.wionews.com/business-economy/indias-growth-set-to-be-higher-than-china-in-2018-asian-development-bank-26598">Asian Development Bank(ADB)</a> today projected India's economic growth to pick up to 7.3 per cent this fiscal.

The Bank forecasted India to grow at &nbsp7.6 per cent in 2019-20.&nbsp

Reserve Bank of India had projected the country to grow at 7.4 per cent in 2017 fiscal. The Indian economy grew 6.6 per cent in the last fiscal.

ADB said the growth will pick up as the new tax regime improves productivity and as banking reform and corporate deleveraging take hold to reverse a downtrend in investment.

"In sum, growth is forecast to pick up to 7.3 per cent in FY2018 on improved rural consumption, a modest uptick in private investment, and less drag from net exports. Urban consumption growth will remain stable, and impetus from public investment modest," ADB said.

In December, the ADB had made a similar prediction asserting that South Asia will remain the fastest growing region in Asia Pacific with India projected to grow at 7.3 per cent.

"Also set to catalyse growth are benefits from the GST as it mitigates geographic fragmentation and adds revenue to the exchequer, as well as further progress on fiscal consolidation and reform to promote FDI," the Bank added.

ADB had said India's growth would be at a lower rate of 6.7 per cent in 2017 from the previous estimate of 7.0 per cent, however, as far as China was concerned the bank had said it would grow at 6.8 per cent &nbspbut in 2018 the country could see a dip with the economy growing at 6.4 per cent. 
&nbsp

ADB said the growth will pick up as the new tax regime improves productivity and as banking reform and corporate deleveraging take hold to reverse a downtrend in investment.

Manila-based Asian Development Bank(ADB) today projected India's economic growth to pick up to 7.3 per cent this fiscal. The Bank forecasted India to grow at &nbsp7.6 per cent in 2019-20. Reserve Bank of India had projected the country to grow at 7.4 per cent in 2017 fiscal. The Indian economy grew 6.6 per cent in the last fiscal. ADB said the growth will pick up as the new tax regime improves productivity and as banking reform and corporate deleveraging take hold to reverse a downtrend in investment. "In sum, growth is forecast to pick up to 7.3 per cent in FY2018 on improved rural consumption, a modest uptick in private investment, and less drag from net exports. Urban consumption growth will remain stable, and impetus from public investment modest," ADB said. In December, the ADB had made a similar prediction asserting that South Asia will remain the fastest growing region in Asia Pacific with India projected to grow at 7.3 per cent. "Also set to catalyse growth are benefits from the GST as it mitigates geographic fragmentation and adds revenue to the exchequer, as well as further progress on fiscal consolidation and reform to promote FDI," the Bank added. ADB had said India's growth would be at a lower rate of 6.7 per cent in 2017 from the previous estimate of 7.0 per cent, however, as far as China was concerned the bank had said it would grow at 6.8 per cent &nbspbut in 2018 the country could see a dip with the economy growing at 6.4 per cent.

Indian economy to grow at 7.3 per cent this fiscal, 7.6 per cent in 2019-20: Asian Development Bank

<a href="http://www.wionews.com/world/oscars-2018-live-updates-three-billboards-outside-ebbing-missouri-34656">Oscars 2018, Live updates: Allison Janney wins Best Supporting Actress award for &#39;I, Tonya&#39;</a> 
&#39;Coco&#39; wins Best Animated Feature Film Oscar. Allison Janney wins Best Supporting Actress Oscar for &#39;I, Tonya&#39;. &#39;A Fantastic Woman&#39; wins the Best Foreign Language Film award. The Oscar for Best Documentary Feature goes to &#39;Icarus&#39;.&nbsp;

<a href="http://www.wionews.com/world/entertainment-jimmy-kimmel-hosts-oscars-night-mentions-harvey-weinstein-scandal-34664">Jimmy Kimmel hosts Oscars night, mentions Harvey Weinstein scandal</a> 
As the stars made way to the main event, Kimmel spoke about Harvey Weinstein scandal along with other things in his opening monologue. He said, Weinstein&#39;s downfall following dozens of allegations of sexual misconduct &quot;was long overdue,&quot; along with the demise of numerous other celebrities caught up in the scandal.&nbsp;

<a href="http://www.wionews.com/world/china-to-hike-defence-budget-by-81-in-2018-34657">China to hike defence budget by 8.1% in 2018</a> 
The outlay was presented to the National People&#39;s Congress with a seven percent increase last year and 7.6 percent in 2016 which marked the first time in six years that spending growth had not risen into double figures.

<a href="http://www.wionews.com/world/earthquake-of-magnitude-42-strikes-oklahoma-enid-34662">Earthquake</a><a href="http://www.wionews.com/world/earthquake-of-magnitude-42-strikes-oklahoma-enid-34662"> of magnitude 4.2 strikes ‪Oklahoma‬, ‪Enid</a> 
So far, there are no reports of damage or injuries. However, Enid residents throughout the city reported shaking, creaking houses, media reports said.

<a href="http://www.wionews.com/world/italys-ruling-centre-left-party-admits-election-defeat-34670">Italy&#39;s ruling centre-left party admits election defeat</a> 
Italy&#39;s ruling centre-left Democratic Party on Monday admitted it had suffered a &quot;clear defeat&quot; in a general election after coming in third according to projections.

Oscars 2018, Live updates: Allison Janney wins Best Supporting Actress award for 'I, Tonya' 'Coco' wins Best Animated Feature Film Oscar. Allison Janney wins Best Supporting Actress Oscar for 'I, Tonya'. 'A Fantastic Woman' wins the Best Foreign Language Film award. The Oscar for Best Documentary Feature goes to 'Icarus'. Jimmy Kimmel hosts Oscars night, mentions Harvey Weinstein scandal As the stars made way to the main event, Kimmel spoke about Harvey Weinstein scandal along with other things in his opening monologue. He said, Weinstein's downfall following dozens of allegations of sexual misconduct "was long overdue," along with the demise of numerous other celebrities caught up in the scandal. China to hike defence budget by 8.1% in 2018 The outlay was presented to the National People's Congress with a seven percent increase last year and 7.6 percent in 2016 which marked the first time in six years that spending growth had not risen into double figures. Earthquake of magnitude 4.2 strikes ‪Oklahoma‬, ‪Enid So far, there are no reports of damage or injuries. However, Enid residents throughout the city reported shaking, creaking houses, media reports said. Italy's ruling centre-left party admits election defeat Italy's ruling centre-left Democratic Party on Monday admitted it had suffered a "clear defeat" in a general election after coming in third according to projections.

WION Morning News Brief, March 5, 2018

The BSE Sensex dropped by over 137 points or 0.40 per cent to close at 34,046.94 today to extend losses for the third day in a row as fiscal deficit worries and global sell-off triggered by US Fed rate hike fears continued to unsettle investors despite positive macro data.

Banking stocks, particularly state-run lenders were among the biggest laggards on unabated nervous off-loading by participants amid growing concerns over a spate of fraud cases.

Select auto stocks, however, were in some demand on the back of encouraging February sales numbers.

The 30-share benchmark opened higher and scaled a high of 34,278.63 in early deals after positive GDP data for the third quarter. According to the official data released after market hours yesterday, the GDP growth rate rose to a five-quarter high growth of 7.2 per cent in the October-December quarter on good showing by key sectors like manufacturing.

The core sector growth rate also picked up momentum to touch 6.2 per cent in January.

Stocks however slipped into the negative zone with the BSE Sensex touching a low of 34,015.79 due to continued selling in global markets.

The 30-share barometer settled at 34,046.94, down 137.10 points, or 0.40 per cent as its 20 constituents led by ICICI Bank and SBI ended in the red.

The 50-issue NSE Nifty too lost 34.50 points, or 0.33 at 10,458.35 after shuttling between 10,525.50 and 10,447.15.

For the week, the flagship Sensex recorded a fall of 95.21 points, or 0.27 per cent, while the NSE Nifty lost 32.70 points, or 0.31 per cent.

&quot;Markets traded dull and ended lower amid mixed local cues. Initially, participants took note of encouraging GDP figure and uptick in core sector data, which helped index to open higher despite weak global markets. However, further widening of fiscal deficit also dampened the sentiment to some extent and capped upside,&quot; said Jayant Manglik, President, Religare Broking Ltd.

Official data showed that fiscal deficit touched Rs 6.77 lakh crore at the end of January, 113.7 per cent of the target for the entire fiscal, on account of higher expenditure.

Analyst said the market was in &quot;sell on rise&quot; phase as investors preferred to book profits amid global uncertainty.

Asian markets broadly closed with losses, extending a global sell-off on US interest rate hike fears. US Fed chief Jerome Powell who painted a rosy picture about the US economy and hinted at future rate hikes before the Congress was set to speak on Capitol Hill again today.

In the sectoral terms, the BSE metal index fell by 0.95 per cent, bankex (0.85 per cent), realty (0.77 per cent), consumer durables (0.71 per cent), teck (0.65 per cent), healthcare (0.58 per cent), IT (0.53 per cent), power (0.48 per cent) and PSU (0.43 per cent).

In the Sensex pack, ICICI Bank suffered the most by 2.63 per cent, followed by country&#39;s largest state-run SBI 2.31 per cent.

Other laggards include Infosys, Power Grid, HDFC Bank, ITC Ltd, Axis Bank, RIL, Hero MotoCorp, Yes Bank, L&amp;T, Dr Reddy&#39;s, Adani Ports, Sun Pharma, NTPC, TCS an HDFC Ltd, falling up to 1.19 per cent.

In contrast, Coal India, IndusInd Bank, Hindustan Unilever, M&amp;M, Kotak Bank, ONGC, Tata Steel, Tata Motors and Maruti Suzui managed to end in the positive terrain and cushioned the fall.

The broader markets too were under selling pressure from investors with the BSE mid-cap index falling by 0.61 per cent, while small-cap index lost 0.24 per cent.

Globally, Japan&#39;s Nikkei fell 1.56 per cent, while Singapore shed 0.24 per cent. Shanghai Composite Index, however, was up 0.44 per cent and Hong Kong&#39;s Hang Seng rose 0.65 per cent.

In Europe, Frankfurt&#39;s DAX 30 fell 0.50 per cent, while Paris CAC 40 down 0.25 per cent in their early deals. London&#39;s FTSE too fell 0.18 per cent.&nbsp;

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The benchmark Sensex closed down 0.40 per cent at 34,046.94

The BSE Sensex dropped by over 137 points or 0.40 per cent to close at 34,046.94 today to extend losses for the third day in a row as fiscal deficit worries and global sell-off triggered by US Fed rate hike fears continued to unsettle investors despite positive macro data. Banking stocks, particularly state-run lenders were among the biggest laggards on unabated nervous off-loading by participants amid growing concerns over a spate of fraud cases. Select auto stocks, however, were in some demand on the back of encouraging February sales numbers. The 30-share benchmark opened higher and scaled a high of 34,278.63 in early deals after positive GDP data for the third quarter. According to the official data released after market hours yesterday, the GDP growth rate rose to a five-quarter high growth of 7.2 per cent in the October-December quarter on good showing by key sectors like manufacturing. The core sector growth rate also picked up momentum to touch 6.2 per cent in January. Stocks however slipped into the negative zone with the BSE Sensex touching a low of 34,015.79 due to continued selling in global markets. The 30-share barometer settled at 34,046.94, down 137.10 points, or 0.40 per cent as its 20 constituents led by ICICI Bank and SBI ended in the red. The 50-issue NSE Nifty too lost 34.50 points, or 0.33 at 10,458.35 after shuttling between 10,525.50 and 10,447.15. For the week, the flagship Sensex recorded a fall of 95.21 points, or 0.27 per cent, while the NSE Nifty lost 32.70 points, or 0.31 per cent. "Markets traded dull and ended lower amid mixed local cues. Initially, participants took note of encouraging GDP figure and uptick in core sector data, which helped index to open higher despite weak global markets. However, further widening of fiscal deficit also dampened the sentiment to some extent and capped upside," said Jayant Manglik, President, Religare Broking Ltd. Official data showed that fiscal deficit touched Rs 6.77 lakh crore at the end of January, 113.7 per cent of the target for the entire fiscal, on account of higher expenditure. Analyst said the market was in "sell on rise" phase as investors preferred to book profits amid global uncertainty. Asian markets broadly closed with losses, extending a global sell-off on US interest rate hike fears. US Fed chief Jerome Powell who painted a rosy picture about the US economy and hinted at future rate hikes before the Congress was set to speak on Capitol Hill again today. In the sectoral terms, the BSE metal index fell by 0.95 per cent, bankex (0.85 per cent), realty (0.77 per cent), consumer durables (0.71 per cent), teck (0.65 per cent), healthcare (0.58 per cent), IT (0.53 per cent), power (0.48 per cent) and PSU (0.43 per cent). In the Sensex pack, ICICI Bank suffered the most by 2.63 per cent, followed by country's largest state-run SBI 2.31 per cent. Other laggards include Infosys, Power Grid, HDFC Bank, ITC Ltd, Axis Bank, RIL, Hero MotoCorp, Yes Bank, L&T, Dr Reddy's, Adani Ports, Sun Pharma, NTPC, TCS an HDFC Ltd, falling up to 1.19 per cent. In contrast, Coal India, IndusInd Bank, Hindustan Unilever, M&M, Kotak Bank, ONGC, Tata Steel, Tata Motors and Maruti Suzui managed to end in the positive terrain and cushioned the fall. The broader markets too were under selling pressure from investors with the BSE mid-cap index falling by 0.61 per cent, while small-cap index lost 0.24 per cent. Globally, Japan's Nikkei fell 1.56 per cent, while Singapore shed 0.24 per cent. Shanghai Composite Index, however, was up 0.44 per cent and Hong Kong's Hang Seng rose 0.65 per cent. In Europe, Frankfurt's DAX 30 fell 0.50 per cent, while Paris CAC 40 down 0.25 per cent in their early deals. London's FTSE too fell 0.18 per cent.

Sensex, Nifty fall despite GDP upswing

Moody&#39;s Investors Service today estimated that India will grow 7.6 per cent in calendar year 2018 and 7.5 per cent in 2019, amid signs of economic recovery from impact of demonetisation and GST.

&quot;There are some signs that the Indian economy is starting to recover from the soft growth patch attributed to the negative impact of the demonetisation undertaken in 2016 and disruption related to last year?s rollout of the Goods and Service Tax,&quot; it said.

The Budget for 2018-19 includes some measures that could stabilise the rural economy that was disproportionately hit by the demonetization policy and is yet to recover, it said.

&quot;As we have said before, the bank recapitalisation plan should also help credit growth over time, thereby supporting growth,&quot; Moody&#39;s said.&nbsp;

'There are some signs that the Indian economy is starting to recover from the soft growth patch attributed to the negative impact of the demonetisation undertaken in 2016 and disruption related to last year?s rollout of the Goods and Service Tax,' said Moody's

Moody's Investors Service today estimated that India will grow 7.6 per cent in calendar year 2018 and 7.5 per cent in 2019, amid signs of economic recovery from impact of demonetisation and GST. "There are some signs that the Indian economy is starting to recover from the soft growth patch attributed to the negative impact of the demonetisation undertaken in 2016 and disruption related to last year?s rollout of the Goods and Service Tax," it said. The Budget for 2018-19 includes some measures that could stabilise the rural economy that was disproportionately hit by the demonetization policy and is yet to recover, it said. "As we have said before, the bank recapitalisation plan should also help credit growth over time, thereby supporting growth," Moody's said.

India to grow at 7.6% in 2018: Moody's

Benchmark Sensex zoomed 233 points to end at yet another record high today after the Economic Survey said India will re-establish itself as the world&#39;s fastest growing major economy with GDP expanding by 7-7.5 per cent in 2018-19.

The beginning of February derivatives contracts and unabated foreign fund inflows amid a higher opening of European markets added to the optimism, brokers said.

The 30-share barometer, after opening on a strong footing on optimistic buying by participants, gathered momentum to touch an all-time high of 36,443.98.

However, it shed some ground on profit-booking, before finally finishing at 36,283.25, up by 232.81 points, or 0.65 per cent -- surpassing its previous record closing of 36,161.64 hit on January 24.

The 50-share NSE Nifty too closed at a fresh life high of 11,130.40 points, up 60.75 points, or 0.55 per cent. 
It broke its previous closing record of 11,086 reached on January 24.

The Economic Survey for 2017-18 said the GDP will grow on the back of major reforms which would be strengthened further in the next financial year.

The pre-budget survey pointed out that India can be rated as among the best performing economies in the world as the average growth during last three years is around 4 percentage points higher than global growth and nearly 3 percentage points higher than that of emerging markets and developing economies.

Benchmark Sensex zoomed 233 points on Monday

Benchmark Sensex zoomed 233 points to end at yet another record high today after the Economic Survey said India will re-establish itself as the world's fastest growing major economy with GDP expanding by 7-7.5 per cent in 2018-19. The beginning of February derivatives contracts and unabated foreign fund inflows amid a higher opening of European markets added to the optimism, brokers said. The 30-share barometer, after opening on a strong footing on optimistic buying by participants, gathered momentum to touch an all-time high of 36,443.98. However, it shed some ground on profit-booking, before finally finishing at 36,283.25, up by 232.81 points, or 0.65 per cent -- surpassing its previous record closing of 36,161.64 hit on January 24. The 50-share NSE Nifty too closed at a fresh life high of 11,130.40 points, up 60.75 points, or 0.55 per cent. It broke its previous closing record of 11,086 reached on January 24. The Economic Survey for 2017-18 said the GDP will grow on the back of major reforms which would be strengthened further in the next financial year. The pre-budget survey pointed out that India can be rated as among the best performing economies in the world as the average growth during last three years is around 4 percentage points higher than global growth and nearly 3 percentage points higher than that of emerging markets and developing economies.

Sensex closes at new high over Economic Survey

Private investment seems poised to rebound with efforts being made for expeditious resolution of bad loans and adequate recapitalisation of public sector banks (PSBs), the Economic Survey said.

The government announced a large recapitalisation package of about 1.2 per cent of GDP to strengthen the balance sheets of the PSBs, the Economic Survey 2017-18 tabled in Parliament said today.

Last week, the government announced a slew of reforms for the banking sector and said it will infuse an unprecedented Rs 88,139 crore capital in 20 PSBs before March 31 to boost lending and revive growth.

&quot;As these twin reforms take hold, firms should finally be able to resume spending and banks to lend especially to the critical, but currently-stressed sectors of infrastructure and manufacturing,&quot; the pre-Budget survey said.

It noted that the private investment seems poised to rebound, as many of the factors exerting a drag on growth over the past year finally ease off.

&quot;Translating this potential into an actual investment rebound will depend on the resolution and recapitalisation process. If this process moves ahead expeditiously, stressed firms will be put in the hands of stronger ownership, allowing them to resume spending.

&quot;But if resolution is delayed, so too will the return of the private capex cycle. And if this occurs, public investment will not be able to step into the breach, since it will be constrained by the need to maintain a modicum of fiscal consolidation to head off market anxieties,&quot; it said.

Observing that another key determinant of growth will be the implementation of the Insolvency and Bankruptcy Code (IBC) process, it said timeliness in resolution and acceptance of the IBC solutions must be a priority to kick-start private investment.

The greater the delays in the early cases, the greater the risk that uncertainty will soon shroud the entire IBC process, it said.

&quot;It is also possible that expeditious resolution may require the government to provide more resources to PSBs, especially if the haircuts required are greater than previously expected, the ongoing process of asset quality recognition uncovers more stressed assets, and if new accounting standards are implemented,&quot; it said.

The government announced a large recapitalisation package of about 1.2 per cent of GDP to strengthen the balance sheets of the PSBs, the Economic Survey 2017-18 tabled in Parliament said today

Private investment seems poised to rebound with efforts being made for expeditious resolution of bad loans and adequate recapitalisation of public sector banks (PSBs), the Economic Survey said. The government announced a large recapitalisation package of about 1.2 per cent of GDP to strengthen the balance sheets of the PSBs, the Economic Survey 2017-18 tabled in Parliament said today. Last week, the government announced a slew of reforms for the banking sector and said it will infuse an unprecedented Rs 88,139 crore capital in 20 PSBs before March 31 to boost lending and revive growth. "As these twin reforms take hold, firms should finally be able to resume spending and banks to lend especially to the critical, but currently-stressed sectors of infrastructure and manufacturing," the pre-Budget survey said. It noted that the private investment seems poised to rebound, as many of the factors exerting a drag on growth over the past year finally ease off. "Translating this potential into an actual investment rebound will depend on the resolution and recapitalisation process. If this process moves ahead expeditiously, stressed firms will be put in the hands of stronger ownership, allowing them to resume spending. "But if resolution is delayed, so too will the return of the private capex cycle. And if this occurs, public investment will not be able to step into the breach, since it will be constrained by the need to maintain a modicum of fiscal consolidation to head off market anxieties," it said. Observing that another key determinant of growth will be the implementation of the Insolvency and Bankruptcy Code (IBC) process, it said timeliness in resolution and acceptance of the IBC solutions must be a priority to kick-start private investment. The greater the delays in the early cases, the greater the risk that uncertainty will soon shroud the entire IBC process, it said. "It is also possible that expeditious resolution may require the government to provide more resources to PSBs, especially if the haircuts required are greater than previously expected, the ongoing process of asset quality recognition uncovers more stressed assets, and if new accounting standards are implemented," it said.

Private investment to rise with NPA resolution, PSBs recap

The World Bank said<a href="http://www.wionews.com/india-news/pm-modi-slams-opposition-for-downplaying-world-bank-report-23490"> today that India is expected to grow </a>over 6.7 per cent in 2017 and likely to register higher growth rate than other major emerging market economies in the next decade.

The World Bank <a href="http://www.wionews.com/business-economy/ease-of-doing-business-indias-rankings-zooms-to-100-in-world-bank-report-up-30-places-23243">said as far as the &quot;big picture&quot; </a>was concerned India has &quot;enormous growth potential&quot;.

&quot;In fact, we expect India to do better than its potential in 2018 and move forward,&quot; he said. India&#39;s growth potential, he said, would be around 7 per cent for the next 10 years,&quot; Ayhan Kose, Director, Development Prospects Group, World Bank, told PTI

Kose said in comparison to India, China&#39;s growth was slowing down with India expected to gradually accelerate despite setbacks in demonetization and Goods and Services Tax (GST).

India needs to step up investment in order to leap ahead of China, Klose said, adding that &quot;improved labor market reforms, education and health reforms as well as relaxing investment bottleneck will help improve India&#39;s prospects&quot;.

&quot;In that context, improving female labour force participation rate is going to be important. Female labour force participation still remains low relative to other emerging market economies. Bringing force right now idle outside of the productive activities will make a huge difference,&quot; Klose told PTI.

India needs to step up investment in order to leap ahead of China, Director, Development Prospects Group, World Bank Klose said.

The World Bank said today that India is expected to grow over 6.7 per cent in 2017 and likely to register higher growth rate than other major emerging market economies in the next decade. The World Bank said as far as the "big picture" was concerned India has "enormous growth potential". "In fact, we expect India to do better than its potential in 2018 and move forward," he said. India's growth potential, he said, would be around 7 per cent for the next 10 years," Ayhan Kose, Director, Development Prospects Group, World Bank, told PTI Kose said in comparison to India, China's growth was slowing down with India expected to gradually accelerate despite setbacks in demonetization and Goods and Services Tax (GST). India needs to step up investment in order to leap ahead of China, Klose said, adding that "improved labor market reforms, education and health reforms as well as relaxing investment bottleneck will help improve India's prospects". "In that context, improving female labour force participation rate is going to be important. Female labour force participation still remains low relative to other emerging market economies. Bringing force right now idle outside of the productive activities will make a huge difference," Klose told PTI.

India's 'growth potential' around 7 per cent for next 10 years: World Bank

Congress president Rahul Gandhi has again found new grounds to attack BJP - this time over India Gross Domestic Product (GDP) or as Gandhi has coined Gross Divisive Politics.&nbsp;

&quot;The GDP is at a 4-year-old low now. Will Prime Minister Modi and Finance Minister Arun Jaitley stop boasting that India is the fastest growing economy?&quot; asked Congress leader Anand Sharma while addressing the media.

Gandhi took to Twitter on Saturday, giving out facts about the current growth projections in the country, while also taking a jibe at finance minister Arun Jaitley and calling him a &quot;genius.&quot;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-cards="hidden" data-lang="en">
FM Jaitley&rsquo;s genius combines with Mr Modi&rsquo;s Gross Divisive Politics (GDP) to give India: 
 
New Investments: 13 year ? 
Bank credit Growth: 63 year ? 
Job creation: 8 year ? 
Agriculture GVA growth: 1.7%? 
Fiscal Deficit: 8 year?? 
Stalled Projects ??<a href="https://t.co/bZdPnREYiE">https://t.co/bZdPnREYiE</a>
&mdash; Office of RG (@OfficeOfRG) <a href="https://twitter.com/OfficeOfRG/status/949479733850337280?ref_src=twsrc%5Etfw">January 6, 2018</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

&nbsp;The Congress leader further said the national investment rate has also fallen.

&quot;The state of the economy is a matter of great concern. All the parameters are going down. The national investment rate has also fallen. Manufacturing has come down. The situation is grim and the government has no roadmap for recovery&quot;, he added.

India&rsquo;s economic growth is estimated to slow down to 4-year low of 6.5 per cent this fiscal, the lowest under the NDA regime, mainly due to GST impact on manufacturing and subdued farm output, according to the advance estimates of national accounts.&nbsp;

As per data released by the Central Statistics Office (CSO), Real GDP at constant (2011-12) prices in the year 2017-18 is likely to attain a level of Rs 129.85 lakh crore, as against the Provisional Estimate of GDP for the year 2016-17 of Rs 121.90 lakh crore, released on May 31, 2017.

The sectors, which registered a growth rate of over 7.0 per cent, include public administration, defence and other services, trade, hotels, transport, communication and services related to broadcasting, electricity, gas, water supply and other utility services and financial, real estate and professional services.

Gandhi has continuously attacked Modi&#39;s implementation of demonetisation and Goods and Services Tax, dubbing it as Gabbar Singh Tax.&nbsp;

The war is set to continue a few more states will go o polls in 2018, ahead of the 2019 Lok Sabha poll

The growth in GDP during 2017-18 is estimated at 6.5 per cent, as compared to the growth rate of 7.1 per cent in 2016-17, the Ministry of Statistics and Programme Implementation had noted on Friday

Congress president Rahul Gandhi has again found new grounds to attack BJP - this time over India Gross Domestic Product (GDP) or as Gandhi has coined Gross Divisive Politics. "The GDP is at a 4-year-old low now. Will Prime Minister Modi and Finance Minister Arun Jaitley stop boasting that India is the fastest growing economy?" asked Congress leader Anand Sharma while addressing the media. Gandhi took to Twitter on Saturday, giving out facts about the current growth projections in the country, while also taking a jibe at finance minister Arun Jaitley and calling him a "genius." FM Jaitley’s genius combines with Mr Modi’s Gross Divisive Politics (GDP) to give India: New Investments: 13 year ? Bank credit Growth: 63 year ? Job creation: 8 year ? Agriculture GVA growth: 1.7%? Fiscal Deficit: 8 year?? Stalled Projects ??https://t.co/bZdPnREYiE — Office of RG (@OfficeOfRG) January 6, 2018 × The Congress leader further said the national investment rate has also fallen. "The state of the economy is a matter of great concern. All the parameters are going down. The national investment rate has also fallen. Manufacturing has come down. The situation is grim and the government has no roadmap for recovery", he added. India’s economic growth is estimated to slow down to 4-year low of 6.5 per cent this fiscal, the lowest under the NDA regime, mainly due to GST impact on manufacturing and subdued farm output, according to the advance estimates of national accounts. As per data released by the Central Statistics Office (CSO), Real GDP at constant (2011-12) prices in the year 2017-18 is likely to attain a level of Rs 129.85 lakh crore, as against the Provisional Estimate of GDP for the year 2016-17 of Rs 121.90 lakh crore, released on May 31, 2017. The sectors, which registered a growth rate of over 7.0 per cent, include public administration, defence and other services, trade, hotels, transport, communication and services related to broadcasting, electricity, gas, water supply and other utility services and financial, real estate and professional services. Gandhi has continuously attacked Modi's implementation of demonetisation and Goods and Services Tax, dubbing it as Gabbar Singh Tax. The war is set to continue a few more states will go o polls in 2018, ahead of the 2019 Lok Sabha poll

Rahul Gandhi takes a jibe at Modi, Arun Jaitley over GDP projections

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