Japan's economy shrank a record 7.8 percent in the April-June quarter, the worst contraction in the nation's modern history, data showed Monday, as the coronavirus deepens the country's economic woes.

The contraction from the previous quarter was slightly worse than expectations but is still significantly less severe than declines seen in many other industrial economies.

Still, it is the worst economic contraction for Japan since comparable data became available in 1980, eclipsing the brutal impact of the 2008 global financial crisis.

And some analysts labelled it the worst fall since data began to be compiled in 1955, though a change in calculation methods in 1980 makes the comparison complicated.

It was the third straight quarter of negative growth, confirming a deepening recession for Japan, and raising the prospect that the government will consider pumping further stimulus into the economy.

"The fall of the Japanese economy in April and May under the state of emergency went beyond expectations. Record falls are expected in both internal and external demand," Yoshiki Shinke, chief economist at Daiichi Life Research Institute, wrote in a note before the official release of the data.

Coronavirus deepens recession

The economy contracted an annualised 27.8 percent, with domestic demand falling 4.8 percent and exports of goods and services plunging 18.5 percent.

But imports fell only 0.5 percent, faring better than the 4.2 percent fall seen in the January-March period.

For the past year to March 2020, Japan's real GDP came to 0.0 percent, compared with a 0.3 percent growth seen in fiscal 2018, the Cabinet Office said.

Japan was already struggling with a stagnating economy and the impact of a consumption tax hike implemented last year before the pandemic hit.

It has seen a smaller coronavirus outbreak compared to some of the worst-hit countries, with infections approaching 55,000 and deaths at slightly under 1,100.

A nationwide state of emergency was imposed as cases spiked in April, but the restrictions were significantly looser than in many countries, with no enforcement mechanism to shutter businesses or keep people at home.&nbsp;

The emergency was lifted in June, and the government has been reluctant to reintroduce measures, even as infections rise again.

Some recovery was seen in Japan after the government lifted the state of emergency, but it was not enough to offset the severe falls felt in April and May, Shinke said.

Hope for recovery

The contraction in April-June compared with the market's expectation of a 7.6 percent contraction, the median forecast of major economists surveyed by the Nikkei business daily.

The figure was less severe than quarter-on-quarter falls in some other major economies, including the United States, which logged a 9.5 percent contraction, and Germany with a 10.1 percent decline for the same quarter.

Japan imposed looser restriction against the coronavirus and fared better than its industrial peers, said Naoya Oshikubo, senior economist at SuMi Trust.

"A collapse in personal consumption... will be the largest single factor behind weak domestic demand. Personal consumption was particularly weak in April-May when the national state of emergency was in effect in Japan," he wrote before the data was published.

"Capital investment was also impacted by the COVID-19 pandemic as uncertainty meant companies put their investment plans on hold," Oshikubo said.

Despite the figures, analysts said the economy could now expect a rebound, with Oshikubo projecting 2.6 growth for the July-September quarter.

"The recovery will likely be driven by rising domestic and external demand in addition to normalisation in Western nations as many countries' lockdown measures are lifted," Oshikubo said.&nbsp;

Personal consumption, which fell 8.2 percent in the April-June quarter, should benefit from a government stimulus payment of 100,000 yen ($939) to all residents of Japan, he said.

Japan's economy shrank a record 7.8 percent in the April-June quarter, the worst contraction in the nation's modern history, data showed Monday, as the coronavirus deepens the country's economic woes.

Japan's economy shrank a record 7.8 percent in the April-June quarter, the worst contraction in the nation's modern history, data showed Monday, as the coronavirus deepens the country's economic woes. The contraction from the previous quarter was slightly worse than expectations but is still significantly less severe than declines seen in many other industrial economies. Still, it is the worst economic contraction for Japan since comparable data became available in 1980, eclipsing the brutal impact of the 2008 global financial crisis. And some analysts labelled it the worst fall since data began to be compiled in 1955, though a change in calculation methods in 1980 makes the comparison complicated. It was the third straight quarter of negative growth, confirming a deepening recession for Japan, and raising the prospect that the government will consider pumping further stimulus into the economy. "The fall of the Japanese economy in April and May under the state of emergency went beyond expectations. Record falls are expected in both internal and external demand," Yoshiki Shinke, chief economist at Daiichi Life Research Institute, wrote in a note before the official release of the data. Coronavirus deepens recession The economy contracted an annualised 27.8 percent, with domestic demand falling 4.8 percent and exports of goods and services plunging 18.5 percent. But imports fell only 0.5 percent, faring better than the 4.2 percent fall seen in the January-March period. For the past year to March 2020, Japan's real GDP came to 0.0 percent, compared with a 0.3 percent growth seen in fiscal 2018, the Cabinet Office said. Japan was already struggling with a stagnating economy and the impact of a consumption tax hike implemented last year before the pandemic hit. It has seen a smaller coronavirus outbreak compared to some of the worst-hit countries, with infections approaching 55,000 and deaths at slightly under 1,100. A nationwide state of emergency was imposed as cases spiked in April, but the restrictions were significantly looser than in many countries, with no enforcement mechanism to shutter businesses or keep people at home. The emergency was lifted in June, and the government has been reluctant to reintroduce measures, even as infections rise again. Some recovery was seen in Japan after the government lifted the state of emergency, but it was not enough to offset the severe falls felt in April and May, Shinke said. Hope for recovery The contraction in April-June compared with the market's expectation of a 7.6 percent contraction, the median forecast of major economists surveyed by the Nikkei business daily. The figure was less severe than quarter-on-quarter falls in some other major economies, including the United States, which logged a 9.5 percent contraction, and Germany with a 10.1 percent decline for the same quarter. Japan imposed looser restriction against the coronavirus and fared better than its industrial peers, said Naoya Oshikubo, senior economist at SuMi Trust. "A collapse in personal consumption... will be the largest single factor behind weak domestic demand. Personal consumption was particularly weak in April-May when the national state of emergency was in effect in Japan," he wrote before the data was published. "Capital investment was also impacted by the COVID-19 pandemic as uncertainty meant companies put their investment plans on hold," Oshikubo said. Despite the figures, analysts said the economy could now expect a rebound, with Oshikubo projecting 2.6 growth for the July-September quarter. "The recovery will likely be driven by rising domestic and external demand in addition to normalisation in Western nations as many countries' lockdown measures are lifted," Oshikubo said. Personal consumption, which fell 8.2 percent in the April-June quarter, should benefit from a government stimulus payment of 100,000 yen ($939) to all residents of Japan, he said.

Japan reports its worst GDP on record: Economy shrinks record 7.8% in April-June

The last fully intact ice shelf in the Canadian Arctic has collapsed, losing more than 40% of its area in just two days at the end of July, researchers said.&nbsp;

The Milne Ice Shelf is at the fringe of Ellesmere Island, in the sparsely populated northern Canadian territory of Nunavut.

“Above normal air temperatures, offshore winds and open water in front of the ice shelf are all part of the recipe for ice shelf break up,” the Canadian Ice Service said on Twitter when it announced the loss on Sunday. 
 
<a href="https://www.wionews.com/science-tech/nearly-half-of-worlds-beaches-disappearing-due-to-climate-change-study-283976">Also Read:&nbsp;Nearly half of world's beaches disappearing due to climate change</a>

“Entire cities are that size. These are big pieces of ice,” said Luke Copland, a glaciologist at the University of Ottawa who was part of the research team studying the Milne Ice Shelf.

The shelf’s area shrank by about 80 square kilometers. By comparison, the island of Manhattan in New York covers roughly 60 square kilometers.

“This was the largest remaining intact ice shelf, and it’s disintegrated, basically,” Copland said.&nbsp;

The Arctic has been warming at twice the global rate for the last 30 years, due to a process known as Arctic amplification. But this year, temperatures in the polar region have been intense. The polar sea ice hit its lowest extent for July in 40 years. Record heat and wildfires have scorched Siberian Russia.

Summer in the Canadian Arctic this year in particular has been 5 degrees Celsius above the 30-year average, Copland said.

That has threatened smaller ice caps, which can melt quickly because they do not have the bulk that larger glaciers have to stay cold. As a glacier disappears, more bedrock is exposed, which then heats up and accelerates the melting process.

“The very small ones, we’re losing them dramatically,” he said, citing researchers’ reviews of satellite imagery. “You feel like you’re on a sinking island chasing these features, and these are large features. It’s not as if it’s a little tiny patch of ice you find in your garden.”&nbsp;

The ice shelf collapse on Ellesmere Island also meant the loss of the northern hemisphere’s last known epishelf lake, a geographic feature in which a body of freshwater is dammed by the ice shelf and floats atop ocean water.

A research camp, including instruments for measuring water flow through the ice shelf, was lost when the shelf collapsed. “It is lucky we were not on the ice shelf when this happened,” said researcher Derek Mueller of Carleton University in Ottawa, in an Aug. 2 blog post.

Ellesmere also lost its two St. Patrick Bay ice caps this summer.

“We saw them going, like someone with terminal cancer. It was only a matter of time,” said Mark Serreze, director of the National Snow and Ice Data Center (NSIDC) in Boulder, Colorado.

Serreze and other NSIDC scientists had published a 2017 study predicting the ice caps were likely to disappear within five years. The ice caps were believed to have formed several centuries ago.

The vanishing was confirmed last month, when NASA satellite shots of the region revealed a complete lack of snow and ice, said Serreze, who studied the caps as a graduate student on his first trip to the Arctic years ago. At the time, he said, the caps had seemed like immovable parts of the geography.&nbsp;

“When I was there in the 1980s I knew every square inch of those ice caps,” he said. “You have the memories. It’s like your first girlfriend.”

Meanwhile, another two ice caps on Ellesmere - called Murray and Simmons - are also diminishing and are likely to disappear within 10 years, Serreze said.

The last fully intact ice shelf in the Canadian Arctic has collapsed, losing more than 40% of its area in just two days at the end of July, researchers said. The Milne Ice Shelf is at the fringe of Ellesmere Island, in the sparsely populated northern Canadian territory of Nunavut.

The last fully intact ice shelf in the Canadian Arctic has collapsed, losing more than 40% of its area in just two days at the end of July, researchers said. The Milne Ice Shelf is at the fringe of Ellesmere Island, in the sparsely populated northern Canadian territory of Nunavut. “Above normal air temperatures, offshore winds and open water in front of the ice shelf are all part of the recipe for ice shelf break up,” the Canadian Ice Service said on Twitter when it announced the loss on Sunday. Also Read: Nearly half of world's beaches disappearing due to climate change “Entire cities are that size. These are big pieces of ice,” said Luke Copland, a glaciologist at the University of Ottawa who was part of the research team studying the Milne Ice Shelf. The shelf’s area shrank by about 80 square kilometers. By comparison, the island of Manhattan in New York covers roughly 60 square kilometers. “This was the largest remaining intact ice shelf, and it’s disintegrated, basically,” Copland said. The Arctic has been warming at twice the global rate for the last 30 years, due to a process known as Arctic amplification. But this year, temperatures in the polar region have been intense. The polar sea ice hit its lowest extent for July in 40 years. Record heat and wildfires have scorched Siberian Russia. Summer in the Canadian Arctic this year in particular has been 5 degrees Celsius above the 30-year average, Copland said. That has threatened smaller ice caps, which can melt quickly because they do not have the bulk that larger glaciers have to stay cold. As a glacier disappears, more bedrock is exposed, which then heats up and accelerates the melting process. “The very small ones, we’re losing them dramatically,” he said, citing researchers’ reviews of satellite imagery. “You feel like you’re on a sinking island chasing these features, and these are large features. It’s not as if it’s a little tiny patch of ice you find in your garden.” The ice shelf collapse on Ellesmere Island also meant the loss of the northern hemisphere’s last known epishelf lake, a geographic feature in which a body of freshwater is dammed by the ice shelf and floats atop ocean water. A research camp, including instruments for measuring water flow through the ice shelf, was lost when the shelf collapsed. “It is lucky we were not on the ice shelf when this happened,” said researcher Derek Mueller of Carleton University in Ottawa, in an Aug. 2 blog post. Ellesmere also lost its two St. Patrick Bay ice caps this summer. “We saw them going, like someone with terminal cancer. It was only a matter of time,” said Mark Serreze, director of the National Snow and Ice Data Center (NSIDC) in Boulder, Colorado. Serreze and other NSIDC scientists had published a 2017 study predicting the ice caps were likely to disappear within five years. The ice caps were believed to have formed several centuries ago. The vanishing was confirmed last month, when NASA satellite shots of the region revealed a complete lack of snow and ice, said Serreze, who studied the caps as a graduate student on his first trip to the Arctic years ago. At the time, he said, the caps had seemed like immovable parts of the geography. “When I was there in the 1980s I knew every square inch of those ice caps,” he said. “You have the memories. It’s like your first girlfriend.” Meanwhile, another two ice caps on Ellesmere - called Murray and Simmons - are also diminishing and are likely to disappear within 10 years, Serreze said.

Record Arctic heat continues, Canada’s last intact ice shelf collapses into the sea

Beijing has reported a 3.2 per cent increase in GDP for the second quarter of 2020 that is the April to June period. Analyst had expected 2.5 per cent growth for this quarter but the Chinese economy declined 6.

Beijing has reported a 3.2 per cent increase in GDP for the second quarter of 2020 that is the April to June period. Analyst had expected 2.5 per cent growth for this quarter but the Chinese economy declined 6.8 per cent during the first three months of the year. China exceeded the projections but the trends are worrying. There is some good news though but that is for the global economy. China is the world's factory, the global manufacturer. China's economy is dependant on manufacturing. The number that China is projecting right now 3.2 per cent increase in GDP is an indicator of the rise in global demand. China's export and industrial production are moving ahead, the domestic market, on the other hand, is dead. China's industrial production is up by 4.8 per cent and the global demand for goods has grown not by 4.8 per cent but it has grown. According to experts, China is overproducing for reasons best known to Beijing due to domestic demand. China's retail sales in Q2 has fallen by 1.8 per cent. So back at home, the Chinese are not buying despite all of Beijing's promotional measures. Earlier, WION had reported how the government of China was handing out coupons to its people so that they would buy goods and services. However, the sales campaign has failed. A fall in retail also displays a lack of confidence. The Chinese are not confident to spend right now because for them, it is not yet business as usual. The job losses in China are not to be forgotten therefore it is not surprising that people are not investing. China's fixed-asset investment has fallen by 3.1 per cent. However, China averted a recession. It was the first country to go into lockdown and the first also to come out of it. The virus was not a bolt from the blue for China. China was prepared for the pandemic and it should not go to town blowing its trumpet with the GDP numbers. Instead, here's what it should do. First, companies are diversifying their manufacturing. In other words, they are avoiding over-reliance on China and are preparing to move out. According to one survey, 2/3rd of large US corporates want to move their manufacturing from China to Mexico in the next two years. Second, the US-China trade war is far from over, also, China's GDP may be rising but it is only a matter of time before it either stagnates or plummets. It is because China is sitting on mounting of debt. Beijing's total debt is 317 per cent of its Q1 GDP which means, its banks are on the brink of collapse. According to a report, the run to banks has already begun. It started with Hebei over the weekend, several customers rushed to banks to withdraw their money as Heibei announced a program to limit large transactions. The pilot project will soon include banks in Zhejiang and Shenzhen too. The people are losing confidence in the Chinese banking system. It is worth $43 trillion dollars, 317 per cent of its GDP. China's GDP is around $14 trillion dollars. River banks too are collapsing in China. There is mass flooding in several parts of the country. China has not released any data on the people affected or the lives lost.

Despite witnessing growth in GDP, China's debt continues to mount

India's economy grew&nbsp;3.1 per cent in the January-March quarter of 2019-20 as against 5.7 per cent in the corresponding quarter of 2018-19, according to data released by the National Statistical Office (NSO).

In 2019-20, the Indian economy had grown&nbsp;by 4.2 per cent against 6.1 per cent in 2018-19, the government statistical body said.

The government had imposed a lockdown on March 25, however, slow business growth in the January-March quarter had impacted the Indian economy.

India's annual growth hit an 11-year low at 4.2 per cent as a fallout of the coronavirus epidemic.&nbsp;

China's economy had shrunk by 6.8 per cent in January-March 2020 due to the impact of coronavirus pandemic.

India's economy grew 3.1 per cent in the January-March quarter of 2019-20 as against 5.7 per cent in the corresponding quarter of 2018-19, according to data released by the National Statistical Office (NSO).

India's economy grew 3.1 per cent in the January-March quarter of 2019-20 as against 5.7 per cent in the corresponding quarter of 2018-19, according to data released by the National Statistical Office (NSO). In 2019-20, the Indian economy had grown by 4.2 per cent against 6.1 per cent in 2018-19, the government statistical body said. The government had imposed a lockdown on March 25, however, slow business growth in the January-March quarter had impacted the Indian economy. India's annual growth hit an 11-year low at 4.2 per cent as a fallout of the coronavirus epidemic. China's economy had shrunk by 6.8 per cent in January-March 2020 due to the impact of coronavirus pandemic.

India's GDP growth slips to 3.1% in January-March quarter

IMF has predicted the global GDP to contract by 3% in 2020. Economic indicators of several countries are showing that any recovery will be tough to achieve. WION's Palki gets you a report on the economic scars of the pandemic.

Coronavirus: IMF projects deeper global downturn | Gravitas

In this segment of Straight Talk, WION in an exclusive conversation spoke to IMF Chief Economist Gita Gopinath on India's GDP growth in 2020.

WION exclusive Straight Talk with IMF Chief Economist  Gita Gopinath on Indian Economy

Reserve Bank of India Governor Shaktikanta Das today in a press meet said that India among a handful of countries that are projecting positive growth.

"For 2020-21, International Monetary Fund projects sizable reshaped recoveries, close to 9 percentage points for the global GDP. India is expected to post a sharp turnaround &amp; resume its pre-COVID, pre-slowdown trajectory by growing at 7.4% in 2020-21," &nbsp;he said in his address to media.

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Shaktikanta Das unveiled measures to ease liquidity and bank credit; and to support the economy and enable normal functioning of markets, as part of the economic relief to mitigate the fallout of coronavirus lockdown.

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<a href="https://twitter.com/hashtag/LIVE?src=hash&amp;ref_src=twsrc%5Etfw">#LIVE</a> | TLTRO auction of Rs 25,000 crore to be conducted today, announces <a href="https://twitter.com/RBI?ref_src=twsrc%5Etfw">@RBI</a> Governor <a href="https://twitter.com/DasShaktikanta?ref_src=twsrc%5Etfw">@DasShaktikanta</a> <a href="https://t.co/QOycHHSea3">pic.twitter.com/QOycHHSea3</a>
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"Targeted Long-Term Repo Operation (TLTRO) auction of Rs 25,000 crore to be conducted today."

"RBI has targetted sectors that have face difficulty in accessing the market or don't have adequate liquidity." 
 
Reverse repo rate cut by 25 basis points from 4 per cent to 3.75 per cent. The cut in reverse repo rate is to encourage banks to lend more, said RBI Governor Shaktikanta Das.

Das announced that Rs 6.9 lakh crore absorbed by RBI on April 15 using reverse repo rate.

"Non-banking finance companies can also avail relaxed non-performing assets (NPA) classification to their borrowers," said RBI governor Shaktikanta Das.

"To maintain the bank's health, RBI said that the lenders will have to maintain 10% higher provisions on accounts. Non-performing classification will exclude moratorium period sais RBI Governor.RBI increases WMA limits by 60 per cent, to plan their market borrowings better. The facility will be available until September 30," said RBI governor Shaktikanta Das. 
 
Mentioning the economical difficulties generated by coronavirus crisis RBI Governor Shaktikanta Das said that today humanity is facing the trial of its time, as COVID-19 grips the world with its deadly embrace. In this kind of environment Reserve Bank of India (RBI) has been very proactive &amp; monitoring the situation closely.

Reserve Bank of India Governor Shaktikanta Das today in a press meet said that India among a handful of countries that are projecting positive growth. "For 2020-21, International Monetary Fund projects sizable reshaped recoveries, close to 9 percentage points for the global GDP.

Reserve Bank of India Governor Shaktikanta Das today in a press meet said that India among a handful of countries that are projecting positive growth. "For 2020-21, International Monetary Fund projects sizable reshaped recoveries, close to 9 percentage points for the global GDP. India is expected to post a sharp turnaround & resume its pre-COVID, pre-slowdown trajectory by growing at 7.4% in 2020-21," he said in his address to media. RBI Governor Shaktikanta Das addresses media https://t.co/CmP3VMD9Rl — WION (@WIONews) April 17, 2020 × Shaktikanta Das unveiled measures to ease liquidity and bank credit; and to support the economy and enable normal functioning of markets, as part of the economic relief to mitigate the fallout of coronavirus lockdown. #LIVE | TLTRO auction of Rs 25,000 crore to be conducted today, announces @RBI Governor @DasShaktikanta pic.twitter.com/QOycHHSea3 — WION (@WIONews) April 17, 2020 × "Targeted Long-Term Repo Operation (TLTRO) auction of Rs 25,000 crore to be conducted today." "RBI has targetted sectors that have face difficulty in accessing the market or don't have adequate liquidity." Reverse repo rate cut by 25 basis points from 4 per cent to 3.75 per cent. The cut in reverse repo rate is to encourage banks to lend more, said RBI Governor Shaktikanta Das. Das announced that Rs 6.9 lakh crore absorbed by RBI on April 15 using reverse repo rate. "Non-banking finance companies can also avail relaxed non-performing assets (NPA) classification to their borrowers," said RBI governor Shaktikanta Das. "To maintain the bank's health, RBI said that the lenders will have to maintain 10% higher provisions on accounts. Non-performing classification will exclude moratorium period sais RBI Governor.RBI increases WMA limits by 60 per cent, to plan their market borrowings better. The facility will be available until September 30," said RBI governor Shaktikanta Das. Mentioning the economical difficulties generated by coronavirus crisis RBI Governor Shaktikanta Das said that today humanity is facing the trial of its time, as COVID-19 grips the world with its deadly embrace. In this kind of environment Reserve Bank of India (RBI) has been very proactive & monitoring the situation closely.

India's growth among best in G20 nations; GDP to grow at 7.4% in 2021-22, says RBI chief

The Reserve Bank Of India has announced liquidity measures for banks and NPFC's and now the central bank has forecast a 7.4% GDP growth. Watch report.

RBI governor on revival of economy | India's GDP to grow at 7.4% in 2021-22

India's economic growth may drop amid the coronavirus pandemic. The world bank expects that India's economic growth will be ranging between 1.5% to 2.8%. Watch report.

| COVID-19 impact on GDP: India GDP growth may drop to 1.5% to 2.8%

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

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

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

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

Things might not look up for the Indian economy at the moment but according to a study, India is likely to bounce back in the long run.&nbsp;

According to a Japan-based think tank, India's bolstered GDP, together with neighbouring China's, is expected to account for 35 per cent of the global Gross Domestic Product in the year 2060.&nbsp;

Japan Center for Economic Research (JCER) has found that India and China's combined share in the world's GDP will near America's and European countries' combined share.&nbsp;

Also read: <a href="https://www.wionews.com/business-economy/nominal-gdp-growth-for-2020-21-estimated-at-10-per-cent-says-fm-sitharaman-277995">Nominal GDP growth for 2020-21 estimated at 10 per cent, says FM Sitharaman</a> &nbsp;

In the next four decades, the JCER found that India's share of the world economy will be over 15 per cent while China's is expected to be around 20 per cent.&nbsp;

China is predicted to surpass the United States as the world's largest economy around 2030, adding that Washington will be quick to retain its spot in the following decades.

Also read: <a href="https://www.wionews.com/business-economy/gdp-growth-rate-for-2018-19-revised-downwards-to-61-from-68-277825">GDP growth rate for 2018-19 revised downwards to 6.1% from 6.8%</a>&nbsp;

The research also points to the falling share of US and Economies economies on the global platform in the years to come.&nbsp; 
&nbsp;

Things might not look up for the Indian economy at the moment but according to a study, India is likely to bounce back in the long run. According to a Japan-based think tank, India's bolstered GDP, together with neighbouring China's, is expected to account for 35 per cent of the global Gross Domestic Product in the year 2060.

Things might not look up for the Indian economy at the moment but according to a study, India is likely to bounce back in the long run. According to a Japan-based think tank, India's bolstered GDP, together with neighbouring China's, is expected to account for 35 per cent of the global Gross Domestic Product in the year 2060. Japan Center for Economic Research (JCER) has found that India and China's combined share in the world's GDP will near America's and European countries' combined share. Also read: Nominal GDP growth for 2020-21 estimated at 10 per cent, says FM Sitharaman In the next four decades, the JCER found that India's share of the world economy will be over 15 per cent while China's is expected to be around 20 per cent. China is predicted to surpass the United States as the world's largest economy around 2030, adding that Washington will be quick to retain its spot in the following decades. Also read: GDP growth rate for 2018-19 revised downwards to 6.1% from 6.8% The research also points to the falling share of US and Economies economies on the global platform in the years to come.

India, China to account for nearly 35% of global GDP in 2060: Study

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

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

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

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

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

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

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

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

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

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

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

WION Edit: Summarising the state of Indian economy

China will maintain its <a href="https://www.wionews.com/world/us-senate-confirms-trumps-pick-for-environmental-protection-agency-12512">environmental protection</a> goals and will not ease off on trying to achieve them even as the economy slows, an environment ministry official said on Thursday.

The cabinet last year issued a guide for some important anti-pollution targets up to the end of 2020 and there will be no adjustments of them, said Xu Bijiu, director-general of the general office at the Ministry of Ecology and Environment.

"It's like&nbsp;rowing a boat against the current," Xu told a media briefing in Beijing.

"We have no other choice but to go forward."

China's gross domestic product (<a href="https://www.wionews.com/business-economy/indias-q2-gdp-falls-to-45-lowest-in-6-years-265259">GDP</a>) growth slowed to 6.0 per cent&nbsp;year-on-year in the third quarter, the weakest in at least 27-1/2 years amid a bruising trade war with the United States, and business owners in industrial areas like Henan province say they are being hit hard by the environmental crackdown.

"The environment and the economy are not opposites" but can move in the same direction, Xu said, pointing out that <a href="https://www.wionews.com/opinions/dont-underestimate-global-economic-impact-on-indias-gdp-233164">GDP</a> had grown from 59 trillion yuan ($8.43 trillion) in 2013 to 90 trillion yuan in 2018, while air pollution had been reduced over that time.

There we still some places seeing fluctuating air quality this year, ministry spokesman Liu Youbin told the same briefing, with the amount of hazardous particulate matter of 2.5 microns or less, known as PM2.5, rising in areas such as Hunan in south-central <a href="https://www.wionews.com/photos/china-celebrates-70th-anniversary-of-communist-rule-252939">China</a>.

The ministry would maintain its pollution controls precisely and scientifically, implementing special audits in areas with obviously worsening <a href="https://www.wionews.com/india-news/air-quality-dips-in-four-major-indian-cities-during-diwali-environment-startup-259055">air quality</a> and strengthening assistance for non-key areas, he said.

Xu said the ministry would promote preferential environmental protection tax policies for private firms that face financing difficulties, adding that a national green development fund would be launched in 2020.

China is heading into the sixth year of its "war on pollution" to try to reverse damage from over three decades of untrammelled economic growth and allay public disquiet about the state of the country's air, soil, and water.

China will maintain its environmental protection goals and will not ease off on trying to achieve them even as the economy slows, an environment ministry official said on Thursday.

China will maintain its environmental protection goals and will not ease off on trying to achieve them even as the economy slows, an environment ministry official said on Thursday. The cabinet last year issued a guide for some important anti-pollution targets up to the end of 2020 and there will be no adjustments of them, said Xu Bijiu, director-general of the general office at the Ministry of Ecology and Environment. "It's like rowing a boat against the current," Xu told a media briefing in Beijing. "We have no other choice but to go forward." China's gross domestic product (GDP) growth slowed to 6.0 per cent year-on-year in the third quarter, the weakest in at least 27-1/2 years amid a bruising trade war with the United States, and business owners in industrial areas like Henan province say they are being hit hard by the environmental crackdown. "The environment and the economy are not opposites" but can move in the same direction, Xu said, pointing out that GDP had grown from 59 trillion yuan ($8.43 trillion) in 2013 to 90 trillion yuan in 2018, while air pollution had been reduced over that time. There we still some places seeing fluctuating air quality this year, ministry spokesman Liu Youbin told the same briefing, with the amount of hazardous particulate matter of 2.5 microns or less, known as PM2.5, rising in areas such as Hunan in south-central China. The ministry would maintain its pollution controls precisely and scientifically, implementing special audits in areas with obviously worsening air quality and strengthening assistance for non-key areas, he said. Xu said the ministry would promote preferential environmental protection tax policies for private firms that face financing difficulties, adding that a national green development fund would be launched in 2020. China is heading into the sixth year of its "war on pollution" to try to reverse damage from over three decades of untrammelled economic growth and allay public disquiet about the state of the country's air, soil, and water.

Economic slowdown will not change China environment policies: Report

At a time when India's economy is suffering from an acute slowdown, the International Monetary Fund (IMF) has issued a warning and said the current downturn can only be reversed through "urgent" policy actions. IMF in its annual review said declining consumption and investment accompanied by falling tax revenue have arrested India's GDP growth, which was one of the fastest in the world just a year ago. #IndiaGDP #IMF #India #IndiaGDPGrowth

IMF: India now in midst of major economic slowdown, needs urgent action

Former President <a href="https://www.wionews.com/india-news/india-uae-have-transformed-and-matured-into-strategic-partnership-pranab-mukherjee-248953">Pranab Mukherjee</a> on Wednesday said that he is not worried over the slow growth of the <a href="https://www.wionews.com/opinions/economy-debate-narendra-modis-nda-versus-manmohan-singhs-upa-267271">Gross Domestic Product</a> (GDP) as 'certain things' that happened had its impact.

"I am not very much worried over the slow <a href="https://www.wionews.com/business-economy/wall-street-week-ahead-tariff-deadline-keeps-focus-on-trade-as-2019-draws-to-close-266795">GDP growth</a> because certain things happened, which had its impact," said Mukherjee at a felicitation programme at the Indian Statistical Institute in Kolkata on Wednesday.

The former finance minister in the UPA government further stated that "the sanctity of data as fact has to be kept intact, it cannot be manipulated or designed in any particular way. That will be disastrous."

"Sometimes I read in newspapers that data is questioned, I feel sad. I used to take pride in the authenticity of the Economic Survey, which was brought out every year before the presentation of the budget," he added.

Former President Pranab Mukherjee on Wednesday said that he is not worried over the slow growth of the Gross Domestic Product (GDP) as 'certain things' that happened had its impact.

Former President Pranab Mukherjee on Wednesday said that he is not worried over the slow growth of the Gross Domestic Product (GDP) as 'certain things' that happened had its impact. "I am not very much worried over the slow GDP growth because certain things happened, which had its impact," said Mukherjee at a felicitation programme at the Indian Statistical Institute in Kolkata on Wednesday. The former finance minister in the UPA government further stated that "the sanctity of data as fact has to be kept intact, it cannot be manipulated or designed in any particular way. That will be disastrous." "Sometimes I read in newspapers that data is questioned, I feel sad. I used to take pride in the authenticity of the Economic Survey, which was brought out every year before the presentation of the budget," he added.

Not worried over slow GDP growth: Pranab Mukherjee

When Comrade Sitaram Yechury rails against GDP being a true measure of progress, he is not supporting the Modi government in its hour of need.

Quarterly GDP is presently at 4.5 per cent, and the fiscal is not expected to return much better than 5 per cent. This is a low-ebb measured by some new markers, as according to the old ones, the prognosis is much worse. But of course, the worm is already beginning to turn, in a cyclic sense. Green shoots of recovery are beginning to show, and the economy in 2020 is expected to do much better.

The reason why Comrade Yechury is not impressed by robust GDP growth, even if it was to return, is because our per capita income is about $2,000 per annum. This is approximately Rs. 140,000/- in round figures. But this is only a division of the income of the country by 1.3 billion people. It is askew. And it might be seen as rather good if one imagines the most destitute Indian making Rs. 11,666.66 per month. Of course, this is not true, because the rich own the universe, and the poor don’t have anything. A simple sum of division can’t change that.

At the same time, in recent years, since the mid-eighties, we have lifted over 400 million people out of abject poverty. Another 400 million of the population is, and has become, broadly middle class –more, as it happens, than the entire population of the US. Some 50 million of us are rather rich by any yardstick. The rest, unfortunately, are very, very, poor.

We add some 15 million people to our number every year, most of them are, ironically, children of the poor.

But, even if we power on at 8 to 10&nbsp;&nbsp;per cent of GDP per annum in the coming years, and take our economy, first to $ 5 trillion, and then to $ 10 trillion, at the present rate of population growth, our per capita will not rise very much at all.

This, even as most demographics show that we are producing more or less “replacement” quantities of babies now, except for some fecund pockets in certain states, and more properly, districts within them.

Most people in the middle class and above have many aspirations. They are not satisfied with just providing a full belly to their children. This has brought down the number of children people are having amongst this section, irrespective of caste and creed. But the per capita is another matter.

To understand this better, we must recall that our population in 1947 was at under 400 million. If we were still holding the line at that number, even with the vastly better life expectancy of these days, our per capita would have risen dramatically with the present size of the economy at some $2.8 trillion.

But, the thing is, could we have grown as much as we have since?

What would happen if we had a much higher per capita than we have at present? Remember, in 1958, when we first started reckoning it, it was just $70. We had a tiny economy, despite a much smaller population then, attended by miniscule growth.

For growth to compute, you need low wages, and reasonable efficiency to deliver high returns on investment. We are not much good at productivity per worker either. A high per capita, on a low-efficiency base, would make for a picky, entitled, but not very good workforce. Rather like the many in Europe or America, as opposed to those in China.

Combined with many Indian infrastructure bottlenecks and expensive land/ utility costs, we would not be competitive, even with generous government subsidies for the domestic market, let alone the export ones.

The growth in the Indian economy truly began around 1985, when the licence-permit raj started to be dismantled. These were multiple chokes and fetters that saw capitalism as something to be kept on a leash.

Initially, and even nearly 35 years on, we are still reaping the harvest of first stage economic reforms, with approaches to labour and land yet to be

revamped. A socialist, unionized, anti-technology labour force can’t expect much of a rise.

Most industrialists are afraid to expand, and certainly, don’t want permanent staff with onerous commitments and near unsackability.&nbsp;

And a contract universe is not, inherently, particularly well-trained. Developing their skills is expensive, and there is little stability in a contract worker’s outlook.

But still, The Indian economy, powered as it is by substantial domestic demand, in one of the biggest market places in the world, trundles on. Others in the developed world with small populations and high per capita income, see even our 5 per cent growth rate as enviable.

We can, and will, become the 3rd biggest economy in the world in due course depending on how fast we grow. But, the growth here, as in China, is because we have a large population and immense amounts of people joining the labour force at the bottom. This, even as huge numbers move on up to the middle class.

It is true that GDP is not everything, but neither is per capita. The Victorian Industrial Revolution could have never happened without an ill-paid labour force with next to no benefits. In colonial times, it was the use of slaves and indentured labour than fuelled the success of many enterprises. It wasn’t fair or equitable. It was capitalism.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) &nbsp;

When Comrade Sitaram Yechury rails against GDP being a true measure of progress, he is not supporting the Modi government in its hour of need. Quarterly GDP is presently at 4.

When Comrade Sitaram Yechury rails against GDP being a true measure of progress, he is not supporting the Modi government in its hour of need. Quarterly GDP is presently at 4.5 per cent, and the fiscal is not expected to return much better than 5 per cent. This is a low-ebb measured by some new markers, as according to the old ones, the prognosis is much worse. But of course, the worm is already beginning to turn, in a cyclic sense. Green shoots of recovery are beginning to show, and the economy in 2020 is expected to do much better. The reason why Comrade Yechury is not impressed by robust GDP growth, even if it was to return, is because our per capita income is about $2,000 per annum. This is approximately Rs. 140,000/- in round figures. But this is only a division of the income of the country by 1.3 billion people. It is askew. And it might be seen as rather good if one imagines the most destitute Indian making Rs. 11,666.66 per month. Of course, this is not true, because the rich own the universe, and the poor don’t have anything. A simple sum of division can’t change that. At the same time, in recent years, since the mid-eighties, we have lifted over 400 million people out of abject poverty. Another 400 million of the population is, and has become, broadly middle class –more, as it happens, than the entire population of the US. Some 50 million of us are rather rich by any yardstick. The rest, unfortunately, are very, very, poor. We add some 15 million people to our number every year, most of them are, ironically, children of the poor. But, even if we power on at 8 to 10 per cent of GDP per annum in the coming years, and take our economy, first to $ 5 trillion, and then to $ 10 trillion, at the present rate of population growth, our per capita will not rise very much at all. This, even as most demographics show that we are producing more or less “replacement” quantities of babies now, except for some fecund pockets in certain states, and more properly, districts within them. Most people in the middle class and above have many aspirations. They are not satisfied with just providing a full belly to their children. This has brought down the number of children people are having amongst this section, irrespective of caste and creed. But the per capita is another matter. To understand this better, we must recall that our population in 1947 was at under 400 million. If we were still holding the line at that number, even with the vastly better life expectancy of these days, our per capita would have risen dramatically with the present size of the economy at some $2.8 trillion. But, the thing is, could we have grown as much as we have since? What would happen if we had a much higher per capita than we have at present? Remember, in 1958, when we first started reckoning it, it was just $70. We had a tiny economy, despite a much smaller population then, attended by miniscule growth. For growth to compute, you need low wages, and reasonable efficiency to deliver high returns on investment. We are not much good at productivity per worker either. A high per capita, on a low-efficiency base, would make for a picky, entitled, but not very good workforce. Rather like the many in Europe or America, as opposed to those in China. Combined with many Indian infrastructure bottlenecks and expensive land/ utility costs, we would not be competitive, even with generous government subsidies for the domestic market, let alone the export ones. The growth in the Indian economy truly began around 1985, when the licence-permit raj started to be dismantled. These were multiple chokes and fetters that saw capitalism as something to be kept on a leash. Initially, and even nearly 35 years on, we are still reaping the harvest of first stage economic reforms, with approaches to labour and land yet to be revamped. A socialist, unionized, anti-technology labour force can’t expect much of a rise. Most industrialists are afraid to expand, and certainly, don’t want permanent staff with onerous commitments and near unsackability. And a contract universe is not, inherently, particularly well-trained. Developing their skills is expensive, and there is little stability in a contract worker’s outlook. But still, The Indian economy, powered as it is by substantial domestic demand, in one of the biggest market places in the world, trundles on. Others in the developed world with small populations and high per capita income, see even our 5 per cent growth rate as enviable. We can, and will, become the 3rd biggest economy in the world in due course depending on how fast we grow. But, the growth here, as in China, is because we have a large population and immense amounts of people joining the labour force at the bottom. This, even as huge numbers move on up to the middle class. It is true that GDP is not everything, but neither is per capita. The Victorian Industrial Revolution could have never happened without an ill-paid labour force with next to no benefits. In colonial times, it was the use of slaves and indentured labour than fuelled the success of many enterprises. It wasn’t fair or equitable. It was capitalism. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Capitalism only works on low per capita income

The <a href="https://www.wionews.com/.../india-seen-making-sixth-interest-rate-cut-but-no -cure-for-economys-ills-265905">Reserve Bank of India</a> (RBI) kept its key lending rate on hold in a surprise decision on Thursday, despite a worrying slowdown in the country that prompted the central bank to sharply reduce its economic growth forecast to 5 per cent&nbsp;for the year through March.

The six-member monetary policy committee (MPC) unanimously voted to hold the key repo rate at 5.15 per cent&nbsp;while the reverse repo rate was also held at 4.90 per cent.

The RBI reiterated that it would maintain an accommodative stance as long as it is necessary to revive economic growth which slowed to 4.5 per cent&nbsp;in the September quarter from 7 per cent&nbsp;a year ago, to stand at its lowest in more than six years.

"The MPC recognises that there is monetary policy space for future action. However, given the evolving growth-inflation dynamics, the MPC felt it appropriate to take a pause at this juncture," the committee said in a statement.

A Reuters poll of 70 economists had predicted the RBI would cut its repo rate by 25 bps and then by another 15 bps in the second quarter of 2020, where it will stay at least until 2021.

The Reserve Bank of India (RBI) kept its key lending rate on hold in a surprise decision on Thursday, despite a worrying slowdown in the country that prompted the central bank to sharply reduce its economic growth forecast to 5 per cent for the year through March.

The Reserve Bank of India (RBI) kept its key lending rate on hold in a surprise decision on Thursday, despite a worrying slowdown in the country that prompted the central bank to sharply reduce its economic growth forecast to 5 per cent for the year through March. The six-member monetary policy committee (MPC) unanimously voted to hold the key repo rate at 5.15 per cent while the reverse repo rate was also held at 4.90 per cent. The RBI reiterated that it would maintain an accommodative stance as long as it is necessary to revive economic growth which slowed to 4.5 per cent in the September quarter from 7 per cent a year ago, to stand at its lowest in more than six years. "The MPC recognises that there is monetary policy space for future action. However, given the evolving growth-inflation dynamics, the MPC felt it appropriate to take a pause at this juncture," the committee said in a statement. A Reuters poll of 70 economists had predicted the RBI would cut its repo rate by 25 bps and then by another 15 bps in the second quarter of 2020, where it will stay at least until 2021.

RBI keeps rates on hold despite economy fears

Five interest rate cuts since the start of the year hasn't stopped India's economy from slowing to its weakest growth rate since 2013, but the&nbsp;Reserve Bank of India&nbsp;is expected to make its sixth cut on Thursday to give what little relief it can.

<a href="https://www.wionews.com/business-economy/indias-q2-gdp-falls-to-45-lowest-in-6-years-265259">Growing by 4.5&nbsp;per cent</a>&nbsp;annually in the June-September quarter, down from 7 per cent&nbsp;a year earlier, the economy is expanding well below the rate needed to generate enough jobs for the millions of younth&nbsp;entering the labour market each month.

The gross domestic product numbers released on Friday showed government spending helping to prop up weak demand, but private investment growth had virtually collapsed, with a crisis in the shadow banking sector causing illiquidity in the economy.

A Reuters poll of 70 economists predicted the RBI would cut its repo rate by 25 basis points (bps) to 4.90 per cent&nbsp;when the monetary policy committee's decision is announced on Thursday, and then by another 15 bps in the second quarter of 2020, where it will stay at least until 2021.

A 25 bps cut would take the cumulative rate cuts by Asia's most aggressive central bank to 160 bps since February and will be the most in a calendar year since 2009.

Madhavi Arora, economist forex and rates at Edelweiss Securities, said the RBI faced "a tough policy dilemma", as economic growth was underperforming, inflation was overshooting, and the government lacked fiscal room to manoeuvre.

She said the latest GDP numbers supported the view in Edelweiss that the RBI will ease "by at least another 50 bps in this cycle, despite an uptick in inflation beyond the 4 per cent&nbsp;comfort zone in the coming months."

Annual retail inflation rose to 4.62 per cent&nbsp;last month, climbing above 4 per cent&nbsp;for the first time in 15 months and up from 3.99 per cent&nbsp;in September.

Analysts believe transient factors were to blame, so the central bank still had room to continue cutting rates.

The September industrial output too contracted 4.3 per cent, following a decline of 1.4 per cent&nbsp;in August.

At its policy review in October, the RBI sharply lowered its growth projection for 2019/20 (April-March) by 80 bps to 6.1 per cent, but most economists expect another downward revision on Thursday.

Rate cuts alone are however expected to do little to revive growth and calls for more direct fiscal stimulus have grown in recent weeks.

A significant minority of economists - 24 of 56 - who answered an additional question in the poll said rate cuts would marginally boost the economy, while nearly a third said they would have little or no impact.

Anagha Deodhar, an economist at ICICI Securities in Mumbai said there was a strong case for an interest rate on Thursday, though monetary policy has limited benefits in the current circumstances.

"Hence, fiscal policy will have to do the heavy-lifting to boost growth. Sector-specific measures and increased government spending could be the quickest way to boost growth in the near term," Deodhar said.

Five interest rate cuts since the start of the year hasn't stopped India's economy from slowing to its weakest growth rate since 2013, but the Reserve Bank of India is expected to make its sixth cut on Thursday to give what little relief it can.

Five interest rate cuts since the start of the year hasn't stopped India's economy from slowing to its weakest growth rate since 2013, but the Reserve Bank of India is expected to make its sixth cut on Thursday to give what little relief it can. Growing by 4.5 per cent annually in the June-September quarter, down from 7 per cent a year earlier, the economy is expanding well below the rate needed to generate enough jobs for the millions of younth entering the labour market each month. The gross domestic product numbers released on Friday showed government spending helping to prop up weak demand, but private investment growth had virtually collapsed, with a crisis in the shadow banking sector causing illiquidity in the economy. A Reuters poll of 70 economists predicted the RBI would cut its repo rate by 25 basis points (bps) to 4.90 per cent when the monetary policy committee's decision is announced on Thursday, and then by another 15 bps in the second quarter of 2020, where it will stay at least until 2021. A 25 bps cut would take the cumulative rate cuts by Asia's most aggressive central bank to 160 bps since February and will be the most in a calendar year since 2009. Madhavi Arora, economist forex and rates at Edelweiss Securities, said the RBI faced "a tough policy dilemma", as economic growth was underperforming, inflation was overshooting, and the government lacked fiscal room to manoeuvre. She said the latest GDP numbers supported the view in Edelweiss that the RBI will ease "by at least another 50 bps in this cycle, despite an uptick in inflation beyond the 4 per cent comfort zone in the coming months." Annual retail inflation rose to 4.62 per cent last month, climbing above 4 per cent for the first time in 15 months and up from 3.99 per cent in September. Analysts believe transient factors were to blame, so the central bank still had room to continue cutting rates. The September industrial output too contracted 4.3 per cent, following a decline of 1.4 per cent in August. At its policy review in October, the RBI sharply lowered its growth projection for 2019/20 (April-March) by 80 bps to 6.1 per cent, but most economists expect another downward revision on Thursday. Rate cuts alone are however expected to do little to revive growth and calls for more direct fiscal stimulus have grown in recent weeks. A significant minority of economists - 24 of 56 - who answered an additional question in the poll said rate cuts would marginally boost the economy, while nearly a third said they would have little or no impact. Anagha Deodhar, an economist at ICICI Securities in Mumbai said there was a strong case for an interest rate on Thursday, though monetary policy has limited benefits in the current circumstances. "Hence, fiscal policy will have to do the heavy-lifting to boost growth. Sector-specific measures and increased government spending could be the quickest way to boost growth in the near term," Deodhar said.

RBI likely to slash interest rates for 6th time on December 5 to support growth

<a href="https://www.wionews.com/world/japan-ex-pm-nakasone-who-boosted-ties-with-us-dies-at-101-265192">Japan</a>&nbsp;is&nbsp;preparing&nbsp;an economic&nbsp;stimulus&nbsp;package&nbsp;worth $120&nbsp;billion&nbsp;to support fragile economic&nbsp;growth, two government officials with direct knowledge of the matter said on Tuesday, complicating government efforts to fix public finances.

The spending would be earmarked in a supplementary budget for this fiscal year to next March and an annual budget for the coming fiscal year from April. Both budgets will be compiled later this month, the sources told Reuters, declining to be identified because the&nbsp;package&nbsp;has not been finalised.

While the&nbsp;package&nbsp;would come to around 13 trillion yen (93.5&nbsp;billion&nbsp;pounds), that would rise to 25 trillion yen ($230&nbsp;billion) when private-sector and other spending are included.

However, the spending could strain the industrial world's heaviest public debt burden, which tops more than twice the size of&nbsp;Japan's $5 trillion economy.

And despite the headline size of the&nbsp;stimulus, actual spending would be smaller in the current fiscal year, and economists are not expecting much of a boost.

"We expect this fiscal year's extra budget to total around 3-4 trillion yen. We should not expect it to substantially push up the GDP&nbsp;growth rate," said Takuya Hoshino, senior economist at Dai-ichi Life Research Institute.

The 13 trillion yen includes more than 3 trillion yen from fiscal investment and loan programmes, as the heavily indebted government seeks to take advantage of low borrowing costs under the Bank of&nbsp;Japan's negative interest rate policy.

Direct government spending is expected to reach around 7-8 trillion yen, they said.

Sources of funding the big-spending remain unclear. A final decision on the&nbsp;package&nbsp;could be made as early as Thursday.

Japan is preparing an economic stimulus package worth $120 billion to support fragile economic growth, two government officials with direct knowledge of the matter said on Tuesday, complicating government efforts to fix public finances.

Japan is preparing an economic stimulus package worth $120 billion to support fragile economic growth, two government officials with direct knowledge of the matter said on Tuesday, complicating government efforts to fix public finances. The spending would be earmarked in a supplementary budget for this fiscal year to next March and an annual budget for the coming fiscal year from April. Both budgets will be compiled later this month, the sources told Reuters, declining to be identified because the package has not been finalised. While the package would come to around 13 trillion yen (93.5 billion pounds), that would rise to 25 trillion yen ($230 billion) when private-sector and other spending are included. However, the spending could strain the industrial world's heaviest public debt burden, which tops more than twice the size of Japan's $5 trillion economy. And despite the headline size of the stimulus, actual spending would be smaller in the current fiscal year, and economists are not expecting much of a boost. "We expect this fiscal year's extra budget to total around 3-4 trillion yen. We should not expect it to substantially push up the GDP growth rate," said Takuya Hoshino, senior economist at Dai-ichi Life Research Institute. The 13 trillion yen includes more than 3 trillion yen from fiscal investment and loan programmes, as the heavily indebted government seeks to take advantage of low borrowing costs under the Bank of Japan's negative interest rate policy. Direct government spending is expected to reach around 7-8 trillion yen, they said. Sources of funding the big-spending remain unclear. A final decision on the package could be made as early as Thursday.

Japan preparing $120 billion stimulus package as recession risks grow

<a href="https://www.wionews.com/world/at-least-21-dead-after-bus-flips-in-chile-265797">Chile</a> launched a massive $5.5 billion stimulus package after data showed its economy contracted 3.4 per cent in October&nbsp;the largest year-on-year drop in a decade as widespread social unrest continues.

The package unveiled by Finance Minister Ignacio Briones on Monday includes boosting 2020 public spending by $3.03 billion, to support small, medium and large businesses.

Another $525 million are earmarked for other initiatives like the renovation of the metro system in Santiago, which has sustained serious damage since protests erupted on October 18.

"Estimates show that this agenda will generate 100,000 new jobs next year," Briones said.

But the measures will mean a real increase in public spending next year of 9.8 per cent as compared to 2019, pushing the fiscal deficit up to 4.4 per cent of gross domestic product.

"Like any Chilean household that faces unforeseen trouble, we will turn to our savings and our borrowing capacity, while remaining aware that both have limits that cannot be exceeded," Briones said.

The government announced the stimulus measures after the central bank reported the worrisome GDP figures for October.

The 3.4 per cent drop was far greater than the one percent decrease anticipated in official estimates and represented the economy's worst performance since 2009 at the height of the global economic crisis.

"Economic activity during the month was affected by the drop-in services, commerce, and manufacturing," the central bank said.

Mining activity Chile accounts for nearly a third of the world's copper production grew by two percent, but non-mining sectors contracted by four percent, the bank said.

The government's plan "loses meaning if we do not manage to isolate the vandals, looters, narcos and all those who threaten our democracy," said interior min

Chile launched a massive $5.5 billion stimulus package after data showed its economy contracted 3.4 per cent in October the largest year-on-year drop in a decade as widespread social unrest continues.

Chile launched a massive $5.5 billion stimulus package after data showed its economy contracted 3.4 per cent in October the largest year-on-year drop in a decade as widespread social unrest continues. The package unveiled by Finance Minister Ignacio Briones on Monday includes boosting 2020 public spending by $3.03 billion, to support small, medium and large businesses. Another $525 million are earmarked for other initiatives like the renovation of the metro system in Santiago, which has sustained serious damage since protests erupted on October 18. "Estimates show that this agenda will generate 100,000 new jobs next year," Briones said. But the measures will mean a real increase in public spending next year of 9.8 per cent as compared to 2019, pushing the fiscal deficit up to 4.4 per cent of gross domestic product. "Like any Chilean household that faces unforeseen trouble, we will turn to our savings and our borrowing capacity, while remaining aware that both have limits that cannot be exceeded," Briones said. The government announced the stimulus measures after the central bank reported the worrisome GDP figures for October. The 3.4 per cent drop was far greater than the one percent decrease anticipated in official estimates and represented the economy's worst performance since 2009 at the height of the global economic crisis. "Economic activity during the month was affected by the drop-in services, commerce, and manufacturing," the central bank said. Mining activity Chile accounts for nearly a third of the world's copper production grew by two percent, but non-mining sectors contracted by four percent, the bank said. The government's plan "loses meaning if we do not manage to isolate the vandals, looters, narcos and all those who threaten our democracy," said interior min

Chile unveils $5.5 billion stimulus plan as economy shrinks

India's Gross Domestic Product (GDP) growth for quarter 2 (Q2) slipped to a six-year low, government data showed on Friday. At 4.5 per cent, India's Q2 GDP for the June-September quarter slipped from 5 per cent in the previous quarter of the current fiscal year. India's economic growth was measured at 7 per cent for the July-September quarter a year earlier.

WION Dispatch: India's economic growth at 6-year low

India's <a href="https://www.wionews.com/india-news/gdp-growth-rate-slump-is-temporary-prakash-javadekar-248490">Gross Domestic Product (GDP</a>) growth for quarter 2 (Q2) slipped to a six-year low, government data showed on Friday.&nbsp;

At 4.5 per cent, India's Q2 GDP for the June-September quarter slipped from 5 per cent in the previous quarter of the current fiscal year.&nbsp;

India's economic growth was measured at 7 per cent for the July-September quarter a year earlier.&nbsp;

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Government of India: Quarter 2 Gross Domestic Product (GDP) showing a growth rate of 4.5% <a href="https://t.co/ysSTQ3rZAH">https://t.co/ysSTQ3rZAH</a>
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Meanwhile, the country's infrastructure output also contracted for the second consecutive month to 5.8 per cent in October from a year earlier, lowest since at least April 2012, news agency Reuters reported.&nbsp;

During April-October, output grew 0.2 per cent from the year-ago period, according to the data.

Infrastructure output comprises eight sectors such as coal, crude oil and electricity and accounts for nearly 40 per cent of the country's industrial output.

India's Gross Domestic Product (GDP) growth for quarter 2 (Q2) slipped to a six-year low, government data showed on Friday. At 4.5 per cent, India's Q2 GDP for the June-September quarter slipped from 5 per cent in the previous quarter of the current fiscal year.

India's Gross Domestic Product (GDP) growth for quarter 2 (Q2) slipped to a six-year low, government data showed on Friday. At 4.5 per cent, India's Q2 GDP for the June-September quarter slipped from 5 per cent in the previous quarter of the current fiscal year. India's economic growth was measured at 7 per cent for the July-September quarter a year earlier. Government of India: Quarter 2 Gross Domestic Product (GDP) showing a growth rate of 4.5% https://t.co/ysSTQ3rZAH — ANI (@ANI) November 29, 2019 × Meanwhile, the country's infrastructure output also contracted for the second consecutive month to 5.8 per cent in October from a year earlier, lowest since at least April 2012, news agency Reuters reported. During April-October, output grew 0.2 per cent from the year-ago period, according to the data. Infrastructure output comprises eight sectors such as coal, crude oil and electricity and accounts for nearly 40 per cent of the country's industrial output.

India's GDP for June-September quarter falls to 4.5%, lowest in 6 years  

Indian shares inched higher in early trade on Thursday ahead of the expiry of November futures and options, while investors awaited gross domestic product (GDP) data due on Friday for clues about the health of Asia's third-largest economy.

The NSE Nifty 50 index was up 0.1 per cent&nbsp;at 12,111.90 by 0406 GMT, while the S&amp;P BSE Sensex index was higher 0.1 per cent&nbsp;at 41,062.

"We are at a crucial juncture at this point of time. Today's move will decide the future course of action," said Rusmik Oza, head of fundamental research, Kotak Securities.

"If the market closes above 12,100 levels on expiry, then investors are ready to digest the GDP numbers. If they retrace today, then there are chances they might go down tomorrow or after the data."

Indian stocks are set to rise further over the coming year, according to a Reuters poll of equity strategists, but those gains will be limited as fiscal stimulus and easy monetary policy fail to reverse an economic slowdown.

Public sector banks led gains in the Nifty index, with the main sub-index rising 1.15 per cent. Shares of Indian Bank rose 4.52 per cent, while Oriental Bank of Commerce gained 4.1per cent.

Bharti Infratel was the top gainer in the Nifty 50 index, rising 4.7 per cent.

Indian shares inched higher in early trade on Thursday ahead of the expiry of November futures and options, while investors awaited gross domestic product (GDP) data due on Friday for clues about the health of Asia's third-largest economy.

Indian shares inched higher in early trade on Thursday ahead of the expiry of November futures and options, while investors awaited gross domestic product (GDP) data due on Friday for clues about the health of Asia's third-largest economy. The NSE Nifty 50 index was up 0.1 per cent at 12,111.90 by 0406 GMT, while the S&P BSE Sensex index was higher 0.1 per cent at 41,062. "We are at a crucial juncture at this point of time. Today's move will decide the future course of action," said Rusmik Oza, head of fundamental research, Kotak Securities. "If the market closes above 12,100 levels on expiry, then investors are ready to digest the GDP numbers. If they retrace today, then there are chances they might go down tomorrow or after the data." Indian stocks are set to rise further over the coming year, according to a Reuters poll of equity strategists, but those gains will be limited as fiscal stimulus and easy monetary policy fail to reverse an economic slowdown. Public sector banks led gains in the Nifty index, with the main sub-index rising 1.15 per cent. Shares of Indian Bank rose 4.52 per cent, while Oriental Bank of Commerce gained 4.1per cent. Bharti Infratel was the top gainer in the Nifty 50 index, rising 4.7 per cent.

Nifty, Sensex tick up ahead of F&O expiry, GDP data

<a href="https://www.wionews.com/...economy/oecd-hails-india-reforms-pegs-62- growth-in-2020-264158">&nbsp;India's economy</a> probably expanded at its weakest pace in more than six years in the quarter to September, a Reuters poll showed, as consumer demand and private investment weakened further and a global slowdown hit exports.

The median of a poll of economists showed annual growth in gross domestic product of 4.7 per cent&nbsp;in the quarter, down from 5.0 per cent&nbsp;in the previous three months and 7 per cent&nbsp;for the corresponding period of 2018.

Economic growth could dip to around 4 per cent&nbsp;in the September quarter, two domestic television channels said on Wednesday, citing government sources.

If the latest figure for expansion of gross domestic product is 4.7 per cent&nbsp;or less, the quarter will have registered the slowest expansion in 26 quarters, since 4.3 per cent&nbsp;in January-March 2013.

<a href="https://www.wionews.com/.../india-uk-reaffirm-commitment-on-counter- terrorism-cooperation-264974">Prime Minister Narendra Modi</a>'s government has taken several steps, including cutting corporate tax in September, to boost investments and bolster economic growth.

Economists in a Reuters poll predicted the Reserve Bank of India would cut its repo rate for the sixth time in a row, by 25 basis points, to 4.90 per cent&nbsp;at its Dec. 3-5 meeting.

"Agrarian distress and dismal income growth so far, coupled with subdued income growth expectation in urban areas, have weakened consumption demand considerably," said Devindra Pant, chief economist at Fitch arm India Ratings &amp; Research.

"Even the festive demand has failed to revive it," he said, citing data on non-food credit, auto sales and select fast-moving consumer goods.

'Economic emergency'

On Wednesday, in a heated parliamentary debate on the economic slowdown affecting jobs, opposition parties said millions of people had lost their jobs and the country faced an "economic emergency".

In her reply, <a href="https://www.wionews.com/.../cbic-suspends-assistant-commissioner-deepak- pandit-for-misusing-powers-264782">Finance Minister Nirmala Sitharaman</a> said the economy faced a slowdown but no "recession" and cited several government measures to support economic growth.

On Thursday, she sought parliament's approval to spend $2.7 billion in addition to a budgeted 27.86 trillion rupees ($388 billion) in the 2019/20 fiscal year.

Economists said with persistently tight domestic credit and weak corporate profits, India's recovery could be delayed and the pick-up would remain below potential.

India needs to grow at around 8 per cent&nbsp;to create enough jobs for its millions of young people joining the labour force each year.

The unemployment rate in October rose to 8.5 per cent, its highest since August 2016, according to the Centre for Monitoring Indian Economy (CMIE), though the government estimates that urban unemployment declined.

Some economists, however, said economic growth could pick up in the second half of the current fiscal year, after the government took steps to support real estate and non-bank finance companies.

"The economic slowdown has bottomed out in the September quarter," said N.R. Bhanumurthy, an economist at the National Institute of Public Finance and Policy, a Delhi-based government think tank.

"With easing of credit and pick up in festival demand, economic growth is expected to pick up from October onward."

India's economy probably expanded at its weakest pace in more than six years in the quarter to September, a Reuters poll showed, as consumer demand and private investment weakened further and a global slowdown hit exports.

India's economy probably expanded at its weakest pace in more than six years in the quarter to September, a Reuters poll showed, as consumer demand and private investment weakened further and a global slowdown hit exports. The median of a poll of economists showed annual growth in gross domestic product of 4.7 per cent in the quarter, down from 5.0 per cent in the previous three months and 7 per cent for the corresponding period of 2018. Economic growth could dip to around 4 per cent in the September quarter, two domestic television channels said on Wednesday, citing government sources. If the latest figure for expansion of gross domestic product is 4.7 per cent or less, the quarter will have registered the slowest expansion in 26 quarters, since 4.3 per cent in January-March 2013. Prime Minister Narendra Modi's government has taken several steps, including cutting corporate tax in September, to boost investments and bolster economic growth. Economists in a Reuters poll predicted the Reserve Bank of India would cut its repo rate for the sixth time in a row, by 25 basis points, to 4.90 per cent at its Dec. 3-5 meeting. "Agrarian distress and dismal income growth so far, coupled with subdued income growth expectation in urban areas, have weakened consumption demand considerably," said Devindra Pant, chief economist at Fitch arm India Ratings & Research. "Even the festive demand has failed to revive it," he said, citing data on non-food credit, auto sales and select fast-moving consumer goods. 'Economic emergency' On Wednesday, in a heated parliamentary debate on the economic slowdown affecting jobs, opposition parties said millions of people had lost their jobs and the country faced an "economic emergency". In her reply, Finance Minister Nirmala Sitharaman said the economy faced a slowdown but no "recession" and cited several government measures to support economic growth. On Thursday, she sought parliament's approval to spend $2.7 billion in addition to a budgeted 27.86 trillion rupees ($388 billion) in the 2019/20 fiscal year. Economists said with persistently tight domestic credit and weak corporate profits, India's recovery could be delayed and the pick-up would remain below potential. India needs to grow at around 8 per cent to create enough jobs for its millions of young people joining the labour force each year. The unemployment rate in October rose to 8.5 per cent, its highest since August 2016, according to the Centre for Monitoring Indian Economy (CMIE), though the government estimates that urban unemployment declined. Some economists, however, said economic growth could pick up in the second half of the current fiscal year, after the government took steps to support real estate and non-bank finance companies. "The economic slowdown has bottomed out in the September quarter," said N.R. Bhanumurthy, an economist at the National Institute of Public Finance and Policy, a Delhi-based government think tank. "With easing of credit and pick up in festival demand, economic growth is expected to pick up from October onward."

India's economy seen growing at 4.7 per cent in September quarter

When a regime changes, all who have benefited from the old order are suddenly deprived of their influence. They are left with little besides their litany of complaints and criticism. &nbsp;

Still, it is understandable, for those not nimble enough to change stripe, that contemplation of an interminable stretch, out of the limelight, is akin to the Roman Catholic state of purgatory. It is a suspension, in suffering, stuck indefinitely between Heaven and Hell. Except, that the old order admits to none of its sins.&nbsp;

&nbsp;Instead, it adopts a stance of indignation when a procession of their number, including the all-powerful who thought themselves beyond the law, are prosecuted for corruption. It was corruption, almost institutionalised, that was a major reason for the UPA’s humiliating rout at the hustings, not once, but twice in a row. &nbsp;

When Narendra Modi, a provincial but clean Chief Minister, with no first-hand foreknowledge of the Centre, won a majority in the Lok Sabha after 30 years, in 2014, the old guard was astounded. There were those in the capital who thought it was a massive overreaction on the part of the electorate to his spectacular oratory. Modi’s popularity would surely wane by mid-term, they said, as it had in the case of the ill-fated Rajiv Gandhi administration. And he would be shown the door at the end of his one and only five-year term. It was a flash in the pan. All one had to do was be patient and disdainful. &nbsp;&nbsp;

It was axiomatic to such people that no “communal” government, with a nebulous grip on the economy and governance, and clumsy law-making, could possibly last more than a single term. Even the avuncular, get-along Atal Bihari Vajpayee’s saffron government from a decade ago, lasted only about six years. &nbsp;

Demonetisation in Modi 1.0, they cried, and do so still, as each anniversary of the November 8, 2016 announcement approaches, was a disaster. It destroyed livelihoods of the MSME sector and the labouring classes. Then, GST bamboozled the shopkeeper. And the shortfall in its collections month after month point to both a slowing economy and its flawed architecture. Not for nothing was it kept in abeyance by the Congress for long years. &nbsp;

So, a second Modi term in 2019, despite spurious accusations of corruption in the 36 fighter Rafale purchase, in a forced re-enactment of the Bofors scenario that brough Rajiv Gandhi down, was most galling. And that too with an increased majority. What can the electorate be thinking? Do they not see the mismatch between performance and promise? &nbsp;

And now, six months into Modi 2.0, two daunting but long-promised Hindutva aspirations have been fulfilled. The first is the dramatic abrogation of Articles 35A and 370 less than three months into the second term - by simply voiding them both of all content. It was a spectacular bit of legal interpretation and execution.&nbsp;

This, and the resultant main-streaming of J&amp;K via the creation of two new Union Territories - one of Buddhist majority Ladakh, and the other by combining Jammu &amp; Kashmir. There is a new awakening of hope and ambition in both these territories. There has been very little by way of fall out. Pakistan has been reduced to near tears for the lack of support it garnered internationally. And domestically, there has been a broad acceptance of the move. Of course, most of the prospective trouble-makers were safely locked up, out of harm’s way. &nbsp;

The other major achievement within 6 months of this term, is the unanimous and positive Supreme Court verdict on the Ram Temple at Ayodhya. This will lead to the construction of the cherished temple soon, after a very long interregnum. Ayodhya itself is set to be transformed as well.&nbsp;

Other possibilities, to set right the distortions in secularism, is the promulgation of the Uniform Civil Code and the implementation of the National Register of Citizens nationally. Repossession of Gilgit-Baltistan and PoK could also come about through a fortuitous quirk of fate within this very term. &nbsp;

Even on the basis of its present successes, the NDA, increasingly becoming synonymous with the BJP till new allies come along, should be re-elected in 2024. &nbsp;

The only fly in the ointment is the Modi government’s handling of the economy. Not only is it imperative to improve performance for the sake of the hopeful masses looking for jobs and livelihood, but also to keep up with our raised international diplomacy. &nbsp;

To be taken seriously abroad, we have to spend money by way of aid, grants and ventures. Money which we patently do not have at present. Nor can we properly finance our own necessary development and welfare programmes domestically. Holding to the fiscal discipline we have set for ourselves is proving extremely difficult at a 5.5 per cent&nbsp;GDP growth rate when we need 10 per cent. &nbsp;

In today’s world, to raise one’s political profile, particularly in competition with China, without the assurance of a robust economy, simply cannot be sustained. The government will have to take many bold and reformist steps and quickly. &nbsp;

If there is anything that will upset the applecart politically from mid-term in 2021, it is a floundering economy. The cyclical and global position notwithstanding, Prime Minister Modi and his cabinet have no room for excuses or bluster in this regard. The economy is the keystone, and its neglect could bring the whole house down.&nbsp; 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) &nbsp;

When a regime changes, all who have benefited from the old order are suddenly deprived of their influence. They are left with little besides their litany of complaints and criticism.

When a regime changes, all who have benefited from the old order are suddenly deprived of their influence. They are left with little besides their litany of complaints and criticism. Still, it is understandable, for those not nimble enough to change stripe, that contemplation of an interminable stretch, out of the limelight, is akin to the Roman Catholic state of purgatory. It is a suspension, in suffering, stuck indefinitely between Heaven and Hell. Except, that the old order admits to none of its sins. Instead, it adopts a stance of indignation when a procession of their number, including the all-powerful who thought themselves beyond the law, are prosecuted for corruption. It was corruption, almost institutionalised, that was a major reason for the UPA’s humiliating rout at the hustings, not once, but twice in a row. When Narendra Modi, a provincial but clean Chief Minister, with no first-hand foreknowledge of the Centre, won a majority in the Lok Sabha after 30 years, in 2014, the old guard was astounded. There were those in the capital who thought it was a massive overreaction on the part of the electorate to his spectacular oratory. Modi’s popularity would surely wane by mid-term, they said, as it had in the case of the ill-fated Rajiv Gandhi administration. And he would be shown the door at the end of his one and only five-year term. It was a flash in the pan. All one had to do was be patient and disdainful. It was axiomatic to such people that no “communal” government, with a nebulous grip on the economy and governance, and clumsy law-making, could possibly last more than a single term. Even the avuncular, get-along Atal Bihari Vajpayee’s saffron government from a decade ago, lasted only about six years. Demonetisation in Modi 1.0, they cried, and do so still, as each anniversary of the November 8, 2016 announcement approaches, was a disaster. It destroyed livelihoods of the MSME sector and the labouring classes. Then, GST bamboozled the shopkeeper. And the shortfall in its collections month after month point to both a slowing economy and its flawed architecture. Not for nothing was it kept in abeyance by the Congress for long years. So, a second Modi term in 2019, despite spurious accusations of corruption in the 36 fighter Rafale purchase, in a forced re-enactment of the Bofors scenario that brough Rajiv Gandhi down, was most galling. And that too with an increased majority. What can the electorate be thinking? Do they not see the mismatch between performance and promise? And now, six months into Modi 2.0, two daunting but long-promised Hindutva aspirations have been fulfilled. The first is the dramatic abrogation of Articles 35A and 370 less than three months into the second term - by simply voiding them both of all content. It was a spectacular bit of legal interpretation and execution. This, and the resultant main-streaming of J&K via the creation of two new Union Territories - one of Buddhist majority Ladakh, and the other by combining Jammu & Kashmir. There is a new awakening of hope and ambition in both these territories. There has been very little by way of fall out. Pakistan has been reduced to near tears for the lack of support it garnered internationally. And domestically, there has been a broad acceptance of the move. Of course, most of the prospective trouble-makers were safely locked up, out of harm’s way. The other major achievement within 6 months of this term, is the unanimous and positive Supreme Court verdict on the Ram Temple at Ayodhya. This will lead to the construction of the cherished temple soon, after a very long interregnum. Ayodhya itself is set to be transformed as well. Other possibilities, to set right the distortions in secularism, is the promulgation of the Uniform Civil Code and the implementation of the National Register of Citizens nationally. Repossession of Gilgit-Baltistan and PoK could also come about through a fortuitous quirk of fate within this very term. Even on the basis of its present successes, the NDA, increasingly becoming synonymous with the BJP till new allies come along, should be re-elected in 2024. The only fly in the ointment is the Modi government’s handling of the economy. Not only is it imperative to improve performance for the sake of the hopeful masses looking for jobs and livelihood, but also to keep up with our raised international diplomacy. To be taken seriously abroad, we have to spend money by way of aid, grants and ventures. Money which we patently do not have at present. Nor can we properly finance our own necessary development and welfare programmes domestically. Holding to the fiscal discipline we have set for ourselves is proving extremely difficult at a 5.5 per cent GDP growth rate when we need 10 per cent. In today’s world, to raise one’s political profile, particularly in competition with China, without the assurance of a robust economy, simply cannot be sustained. The government will have to take many bold and reformist steps and quickly. If there is anything that will upset the applecart politically from mid-term in 2021, it is a floundering economy. The cyclical and global position notwithstanding, Prime Minister Modi and his cabinet have no room for excuses or bluster in this regard. The economy is the keystone, and its neglect could bring the whole house down. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Narendra Modi government 2.0 must focus on fixing economy

<a href="https://www.wionews.com/world/thousands-in-hong-kong-defy-chinas-xi-with-pro-democracy-rallies-262298">Hong&nbsp;Kong</a>&nbsp;confirmed on Friday its economy plunged into its first recession in a decade in the third quarter, weighed down by increasingly violent anti-government protests and the escalating US-China trade war.

The economy shrank by a seasonally adjusted 3.2 per cent&nbsp;in July-September from the previous quarter, in line with a preliminary reading, revised government data showed. Gross domestic product (GDP) contracted for the second consecutive quarter, meeting the technical definition of a recession.

From a year earlier, the economy contracted 2.9 per cent, the same as the preliminary drop. The readings were the weakest since the global financial crisis in 2008/2009.

Months of confrontation between police and protesters have plunged the financial and trading hub into its worst crisis since it reverted from British to <a href="https://www.wionews.com/world/china-condemns-attack-on-hong-kong-official-in-london-asks-local-police-to-continue-investigation-262218">Chinese rule</a> in 1997.

Tourists are cancelling bookings, retailers are reeling from a sharp drop in sales and the stock market is faltering, adding to pressure the city is feeling from China's economic slowdown and the prolonged Sino-US&nbsp;trade dispute.

Hong Kong confirmed on Friday its economy plunged into its first recession in a decade in the third quarter, weighed down by increasingly violent anti-government protests and the escalating US-China trade war.

Hong Kong confirmed on Friday its economy plunged into its first recession in a decade in the third quarter, weighed down by increasingly violent anti-government protests and the escalating US-China trade war. The economy shrank by a seasonally adjusted 3.2 per cent in July-September from the previous quarter, in line with a preliminary reading, revised government data showed. Gross domestic product (GDP) contracted for the second consecutive quarter, meeting the technical definition of a recession. From a year earlier, the economy contracted 2.9 per cent, the same as the preliminary drop. The readings were the weakest since the global financial crisis in 2008/2009. Months of confrontation between police and protesters have plunged the financial and trading hub into its worst crisis since it reverted from British to Chinese rule in 1997. Tourists are cancelling bookings, retailers are reeling from a sharp drop in sales and the stock market is faltering, adding to pressure the city is feeling from China's economic slowdown and the prolonged Sino-US trade dispute.

Hong Kong third-quarter GDP shrinks 3.2%, confirms depth of recession

India's power demand fell 13.2 per cent&nbsp;in October from a year ago, posting its steepest monthly decline in over 12 years, government data showed, reflecting a deepening growth slowdown in Asia's third-largest economy.

The country needs electricity to fuel its expanding economy but a&nbsp;third decline in power consumption in as many months points to tapering industrial activity in the nation that aims to become a $5 trillion economy by 2024.

India's June quarter GDP grew at its weakest pace in six years as consumer demand and government spending slowed, and economists see the falling electricity demand as a reflection of a further slowdown.

"The slowdown seems to be deep-rooted, especially in the industrial sector. That would certainly increase the anxiety with regard to growth prospects in the current year," said N.R. Bhanumurthy, a professor at the National Institute of Public Finance and Policy in New Delhi.

Consumption in heavily industrialized states such as Maharashtra and Gujarat led the decline. Last month, power demand in Maharashtra declined by 22.4 per cent&nbsp;and in Gujarat by 18.8 per cent, the data from the Central Electricity Authority (CEA) showed. Barring four small states in the country's north and the east, demand fell across regions, the data showed.

India's infrastructure output in September contracted 5.2 per cent, the worst in 14 years, adding to the worries of the government that has been unable to revive demand in the economy despite several steps in the last few months.

Its fuel demand growth - also seen by economists as an indicator of economic activity - is on track for the slowest pace in six years.

Economists said India's growth could fall as low as 5.8 per cent, dragged down by a slump in consumer demand and investment. India's central bank last month cut its growth forecast by 80 basis points for the year ending March 2020 to 6.1 per cent.

Slower economic activity has resulted in a fall in sales of everything from cars to cookies, with some large scale industries resorting to large job cuts.

India's automobile sector, for instance, has cut hundreds of thousands of jobs, citing an unprecedented decline in sales.

"Now we are talking about a sub 6 per cent&nbsp;growth for the current fiscal year," Bhanumurthy told Reuters.

The government, which has not revised its growth forecast of 7 per cent&nbsp;for the financial year, is expected to release data on economic growth by the end of this month. Information on electricity demand prior to January 2006 is not publicly available.

Populous states such as Uttar Pradesh (UP) and Madhya Pradesh (MP) saw demand fall - with MP's electricity requirement falling by over a fourth and UP seeing a decline of 8.3 per cent.

India's power demand fell 13.2 per cent in October from a year ago, posting its steepest monthly decline in over 12 years, government data showed, reflecting a deepening growth slowdown in Asia's third-largest economy.

India's power demand fell 13.2 per cent in October from a year ago, posting its steepest monthly decline in over 12 years, government data showed, reflecting a deepening growth slowdown in Asia's third-largest economy. The country needs electricity to fuel its expanding economy but a third decline in power consumption in as many months points to tapering industrial activity in the nation that aims to become a $5 trillion economy by 2024. India's June quarter GDP grew at its weakest pace in six years as consumer demand and government spending slowed, and economists see the falling electricity demand as a reflection of a further slowdown. "The slowdown seems to be deep-rooted, especially in the industrial sector. That would certainly increase the anxiety with regard to growth prospects in the current year," said N.R. Bhanumurthy, a professor at the National Institute of Public Finance and Policy in New Delhi. Consumption in heavily industrialized states such as Maharashtra and Gujarat led the decline. Last month, power demand in Maharashtra declined by 22.4 per cent and in Gujarat by 18.8 per cent, the data from the Central Electricity Authority (CEA) showed. Barring four small states in the country's north and the east, demand fell across regions, the data showed. India's infrastructure output in September contracted 5.2 per cent, the worst in 14 years, adding to the worries of the government that has been unable to revive demand in the economy despite several steps in the last few months. Its fuel demand growth - also seen by economists as an indicator of economic activity - is on track for the slowest pace in six years. Economists said India's growth could fall as low as 5.8 per cent, dragged down by a slump in consumer demand and investment. India's central bank last month cut its growth forecast by 80 basis points for the year ending March 2020 to 6.1 per cent. Slower economic activity has resulted in a fall in sales of everything from cars to cookies, with some large scale industries resorting to large job cuts. India's automobile sector, for instance, has cut hundreds of thousands of jobs, citing an unprecedented decline in sales. "Now we are talking about a sub 6 per cent growth for the current fiscal year," Bhanumurthy told Reuters. The government, which has not revised its growth forecast of 7 per cent for the financial year, is expected to release data on economic growth by the end of this month. Information on electricity demand prior to January 2006 is not publicly available. Populous states such as Uttar Pradesh (UP) and Madhya Pradesh (MP) saw demand fall - with MP's electricity requirement falling by over a fourth and UP seeing a decline of 8.3 per cent.

India's electricity demand falls at fastest pace in at least 12 years

The strong BJP government is not afraid of taking bold steps. In a daring move, the Finance Minister slashed corporate tax rates to revive the sagging economy.&nbsp;

The market was longing for some good news and jumped more than 5 per cent on a single day – the same day when the tax cut was announced. This is the biggest single-day jump in over a decade, a barometer indicating that the move was welcome.&nbsp;

The BJP government was criticised for derailing the economy and held responsible for a low 5 per cent GDP growth. First, the real estate sector was down and the auto industry was in the slump. These two sectors were seen as pulling down the other industries, ultimately pushing the Indian economy into recession.&nbsp;

The BJP government was under tremendous pressure to stop that from happening. As can be expected, it did not fall short of expectations. On September 20, Finance Minister Nirmala Sitharaman reduced the corporate tax rate for domestic firms and new manufacturing units by 10 to 12 percentage points. She also said that the effective tax rate for domestic corporates, inclusive of surcharges, will fall from 34.94 per cent to 25.17 per cent, provided they stop availing of any other tax sops.

It is also to be noted that for new manufacturing firms set up after October 1, 2019, and commencing operations by March 31, 2023, the effective tax rate comes down from 29.1 per cent to 17 per cent.&nbsp;

Earlier, corporate houses were not too pleased with the Finance Minister for announcing new tax structures in the Union budget. Foreign investments have slowed down with many companies starting to pull money out of the country. This had a negative effect on the stock market and the GDP rate started falling.

The tax rate cut is expected to boost the economy. The growth rate, which currently stands at 5 per cent, is poised to improve. Tax rates, which were earlier high, are now comparable to other Asian countries. It is slated to bring in further investments into the country.&nbsp;

The auto sector, which is already saddled with low demand and job cuts, may get a boost. This will have an overall favourable impact on the economy. India Inc has, as can be expected, welcomed the move with open arms.&nbsp;

Most investments aimed at Asia, were landing up in Vietnam and Philippines. Now with the ongoing trade war on between the US and China, these investments could be routed to India.&nbsp;

However, there are also those critics who feel that the slowdown is because of global recession and also decreased consumption demand within the economy. Hence, the tax cut will not have any direct impact on the growth.&nbsp;

The stock market jump, they argue, was more of a knee jerk reaction and may not be a steady indicator of growth. They believe that the tax cut needs to be coupled with increase in government spending, of which there are not enough signs as yet. There has been many job losses and revival of the economy will take time.&nbsp;

Critics also claim that this move is pro-rich, as only corporate taxes have been slashed. To boost demand, disposable income in the hands of the consumers is mandatory. For that to happen, income tax rate for individuals need to be reduced. At the moment, though, it is the other way round.&nbsp;

There is also the view that economic development is happening in bits and parts. It may not be enough to create confidence in the minds of the investors.&nbsp;

However, the tax cut by the BJP government remains a welcome step in the right direction and a few more steps are needed to put the economy back on the right course. The tax cut could be an initial reform and may act as a steroid for the economy. It proves one thing, however, that the BJP government is stable enough to take bold steps to revive the economy. 
 
(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-a-much-needed-steroid-for-the-slowing-down-indian-economy-2795226">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) &nbsp; 
&nbsp;

The strong BJP government is not afraid of taking bold steps. In a daring move, the Finance Minister slashed corporate tax rates to revive the sagging economy. The market was longing for some good news and jumped more than 5 per cent on a single day – the same day when the tax cut was announced.

The strong BJP government is not afraid of taking bold steps. In a daring move, the Finance Minister slashed corporate tax rates to revive the sagging economy. The market was longing for some good news and jumped more than 5 per cent on a single day – the same day when the tax cut was announced. This is the biggest single-day jump in over a decade, a barometer indicating that the move was welcome. The BJP government was criticised for derailing the economy and held responsible for a low 5 per cent GDP growth. First, the real estate sector was down and the auto industry was in the slump. These two sectors were seen as pulling down the other industries, ultimately pushing the Indian economy into recession. The BJP government was under tremendous pressure to stop that from happening. As can be expected, it did not fall short of expectations. On September 20, Finance Minister Nirmala Sitharaman reduced the corporate tax rate for domestic firms and new manufacturing units by 10 to 12 percentage points. She also said that the effective tax rate for domestic corporates, inclusive of surcharges, will fall from 34.94 per cent to 25.17 per cent, provided they stop availing of any other tax sops. It is also to be noted that for new manufacturing firms set up after October 1, 2019, and commencing operations by March 31, 2023, the effective tax rate comes down from 29.1 per cent to 17 per cent. Earlier, corporate houses were not too pleased with the Finance Minister for announcing new tax structures in the Union budget. Foreign investments have slowed down with many companies starting to pull money out of the country. This had a negative effect on the stock market and the GDP rate started falling. The tax rate cut is expected to boost the economy. The growth rate, which currently stands at 5 per cent, is poised to improve. Tax rates, which were earlier high, are now comparable to other Asian countries. It is slated to bring in further investments into the country. The auto sector, which is already saddled with low demand and job cuts, may get a boost. This will have an overall favourable impact on the economy. India Inc has, as can be expected, welcomed the move with open arms. Most investments aimed at Asia, were landing up in Vietnam and Philippines. Now with the ongoing trade war on between the US and China, these investments could be routed to India. However, there are also those critics who feel that the slowdown is because of global recession and also decreased consumption demand within the economy. Hence, the tax cut will not have any direct impact on the growth. The stock market jump, they argue, was more of a knee jerk reaction and may not be a steady indicator of growth. They believe that the tax cut needs to be coupled with increase in government spending, of which there are not enough signs as yet. There has been many job losses and revival of the economy will take time. Critics also claim that this move is pro-rich, as only corporate taxes have been slashed. To boost demand, disposable income in the hands of the consumers is mandatory. For that to happen, income tax rate for individuals need to be reduced. At the moment, though, it is the other way round. There is also the view that economic development is happening in bits and parts. It may not be enough to create confidence in the minds of the investors. However, the tax cut by the BJP government remains a welcome step in the right direction and a few more steps are needed to put the economy back on the right course. The tax cut could be an initial reform and may act as a steroid for the economy. It proves one thing, however, that the BJP government is stable enough to take bold steps to revive the economy. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Corporate tax cut may act as steroid for the economy

The monetary policy committee (MPC) of the <a href="https://www.wionews.com/india-news/reserve-bank-of-india-to-transfer-surplus-of-rs-176-lakh-crore-to-government-key-points-246060">Reserve Bank of India</a> (RBI) on Friday has cut its benchmark repo rate by 25 basis points to 5.15 per cent, in the fifth straight interest rate cut.

The central bank maintained its accommodative policy stance.&nbsp;The&nbsp;GDP growth for 2019-20 has been revised downwards from 6.9 per cent in the August policy to 6.1 per cent.

RBI has said that there is space to cut repo rates further.

Watch: RBI credit policy - central bank cuts rate by 25 bps to 5.15%

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The reverse repo rate has been reduced to 4.9 per cent, and the bank rate stands at 5.40 per cent.&nbsp;

The six-member <a href="https://www.wionews.com/india-news/social-media-rumours-of-banks-shutting-down-false-reserve-bank-of-india-252026">monetary policy committee</a> (MPC) headed by Governor Shaktikanta Das announced the decision after a three-day meeting.&nbsp;

Earlier on February 7, April 4, June 6 and Aug 7, the central bank had reduced the key lending rate to infuse liquidity and push economic growth.

Repo rate is the rate at which the RBI lends money to commercial banks. A repo rate cut allows banks to reduce interest rates for consumers and lowers equal monthly instalments on home loans, car loans and personal loans.

India's economy grew by only 6.8 per cent in 2018-19, according to government data. GDP growth slumped lower to 5 per cent in the April to June quarter as against an 8 per cent in the year-ago period due to weak household spending, muted corporate investments, and a crippling slowdown in manufacturing and construction activity. Industry leaders say a substantial cut in the repo rate and bank lending rates are needed to boost manufacturing and domestic demand for economic growth.

(With inputs from ANI)

The monetary policy committee (MPC) of the Reserve Bank of India (RBI) on Friday has cut its benchmark repo rate by 25 basis points to 5.15 per cent, in the fifth straight interest rate cut.

The monetary policy committee (MPC) of the Reserve Bank of India (RBI) on Friday has cut its benchmark repo rate by 25 basis points to 5.15 per cent, in the fifth straight interest rate cut. The central bank maintained its accommodative policy stance. The GDP growth for 2019-20 has been revised downwards from 6.9 per cent in the August policy to 6.1 per cent. RBI has said that there is space to cut repo rates further. Watch: RBI credit policy - central bank cuts rate by 25 bps to 5.15% × The reverse repo rate has been reduced to 4.9 per cent, and the bank rate stands at 5.40 per cent. The six-member monetary policy committee (MPC) headed by Governor Shaktikanta Das announced the decision after a three-day meeting. Earlier on February 7, April 4, June 6 and Aug 7, the central bank had reduced the key lending rate to infuse liquidity and push economic growth. Repo rate is the rate at which the RBI lends money to commercial banks. A repo rate cut allows banks to reduce interest rates for consumers and lowers equal monthly instalments on home loans, car loans and personal loans. India's economy grew by only 6.8 per cent in 2018-19, according to government data. GDP growth slumped lower to 5 per cent in the April to June quarter as against an 8 per cent in the year-ago period due to weak household spending, muted corporate investments, and a crippling slowdown in manufacturing and construction activity. Industry leaders say a substantial cut in the repo rate and bank lending rates are needed to boost manufacturing and domestic demand for economic growth. (With inputs from ANI)

Reserve Bank of India cuts repo rate by 25 bps,  from 5.40 per cent to 5.15 per cent

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