Finance Minister Arun Jaitley on Monday tabled the economic survey in Parliament which noted that the reform measures undertaken in 2017-18 can be strengthened further in 2018-19. The survey points out that India can be rated as among the best performing economies in the world as the average growth during last three years is around four percentage points higher than global growth and nearly three percentage points higher than that of emerging market and developing economies.

It said that the GDP growth has averaged 7.3 per cent from 2014-15 to 2017-18, which is the highest among the major economies of the world.

Here are the key takeaways from economic survey 2017-18:

GROWTH

<ul>
	<li>India&#39;s gross domestic product (GDP) growth for 2018-19 pegged at 7-7.5 per cent, current high oil prices a major concern.</li>
	<li>GDP to expand by 6.75% in 2017-18, re-instating India as world&#39;s fastest growing major economy.</li>
	<li>Economic management will be challenging in the coming year.</li>
	<li>Biggest source of upside to growth to be from exports.</li>
	<li>Cyclical conditions may lead to lower tax and non-tax revenues in 2017-18.</li>
	<li>Private investment poised for rebound.</li>
	<li>2017-18 farm sector growth seen at 2.1 per cent.</li>
</ul>

FISCAL DEFICIT

<ul>
	<li>Target for fiscal consolidation specially in a pre-election year can carry a high risk of credibility</li>
	<li>Current account deficit for 2017/18 expected to average 1.5-2 per cent of GDP</li>
	<li>Pause in general govt fiscal consolidation cannot be ruled out in 2017-18</li>
	<li>Suggests modest (fiscal) consolidation that signals a return to the path of gradual but steady deficit reductions</li>
</ul>

INFLATION, POLICY RATES

<ul>
	<li>Persistently high oil prices remain a key risk, to affect inflation</li>
	<li>If inflation doesn`t deviate from current levels policy rates can be expected to remain stable</li>
	<li>Average CPI inflation seen at 3.7 per cent in 2017-18</li>
</ul>

OTHER HIGHLIGHTS

<ul>
	<li>Economy accelerated in second half of current fiscal due to GST, bank recapitalisation, liberalisation of FDI and higher exports.</li>
	<li>Gross Value Added (GVA) expected to grow by 6.1 per cent in 2017-18 as compared to 6.6 per cent in 2016-17.</li>
	<li>Preliminary analysis of the Goods and Services Tax (GST) data reveals 50% increase in the number of indirect taxpayers.</li>
	<li>There is need to address pendency, delays and backlogs in the appellate and judicial arenas.</li>
	<li>&quot;Policy vigilance&quot; in coming year if high oil prices persist or stock prices correct sharply.</li>
	<li>India has performed better on 14 out of 17 key indicators.</li>
</ul>

The survey points out that India can be rated as among the best performing economies in the world as the average growth during last three years is around four percentage points higher than global growth.

Finance Minister Arun Jaitley on Monday tabled the economic survey in Parliament which noted that the reform measures undertaken in 2017-18 can be strengthened further in 2018-19. The survey points out that India can be rated as among the best performing economies in the world as the average growth during last three years is around four percentage points higher than global growth and nearly three percentage points higher than that of emerging market and developing economies. It said that the GDP growth has averaged 7.3 per cent from 2014-15 to 2017-18, which is the highest among the major economies of the world. Here are the key takeaways from economic survey 2017-18: GROWTH India's gross domestic product (GDP) growth for 2018-19 pegged at 7-7.5 per cent, current high oil prices a major concern. GDP to expand by 6.75% in 2017-18, re-instating India as world's fastest growing major economy. Economic management will be challenging in the coming year. Biggest source of upside to growth to be from exports. Cyclical conditions may lead to lower tax and non-tax revenues in 2017-18. Private investment poised for rebound. 2017-18 farm sector growth seen at 2.1 per cent. FISCAL DEFICIT Target for fiscal consolidation specially in a pre-election year can carry a high risk of credibility Current account deficit for 2017/18 expected to average 1.5-2 per cent of GDP Pause in general govt fiscal consolidation cannot be ruled out in 2017-18 Suggests modest (fiscal) consolidation that signals a return to the path of gradual but steady deficit reductions INFLATION, POLICY RATES Persistently high oil prices remain a key risk, to affect inflation If inflation doesn`t deviate from current levels policy rates can be expected to remain stable Average CPI inflation seen at 3.7 per cent in 2017-18 OTHER HIGHLIGHTS Economy accelerated in second half of current fiscal due to GST, bank recapitalisation, liberalisation of FDI and higher exports. Gross Value Added (GVA) expected to grow by 6.1 per cent in 2017-18 as compared to 6.6 per cent in 2016-17. Preliminary analysis of the Goods and Services Tax (GST) data reveals 50% increase in the number of indirect taxpayers. There is need to address pendency, delays and backlogs in the appellate and judicial arenas. "Policy vigilance" in coming year if high oil prices persist or stock prices correct sharply. India has performed better on 14 out of 17 key indicators.

Big takeaways from economic survey

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India's GDP growth to slow to four-year low of 6.5% in 2017-18 The economic growth is expected to slow to a four-year low of 6.5 per cent in 2017-18, the lowest under the Modi-led government, mainly due to poor performance of agriculture and manufacturing sectors. All you need to know about new Rs 10 note introduced by RBI The Reserve Bank of India on Friday introduced a new Rs 10 banknote in a new series and chocolate brown colour. HBO confirms for first time, 'Game of Thrones' to return in 2019 Putting speculations to rest, HBO now confirms that fan rumours were true -- the final season of "Game of Thrones" won't be back until 2019. Disinvestment on cards, Tata group and Singapore Airlines ready to bid for Air India Just days after aviation minister Raju said the government does not want Air India to "go the Kingfisher way", Vistara's CEO Leslie Thng said today that Tata Group and Singapore Airlines are "open to bid" for Air India. Budget likely to announce several features to strengthen women's safety in Railways The Union Budget set to be announced on February 1 is set to include special measures to strengthen women's safety. The Railway Ministry is likely to announce 2018 as "Railway Women's Safety Year".

WION Evening News brief, 5 January 2018

The economic growth is expected to slow to a four-year low of 6.5 per cent in 2017-18, the lowest under the Modi-led government, mainly due to poor performance of agriculture and manufacturing sectors.

The Gross Domestic Product (GDP) was 7.1 per cent in 2016-17 and 8 per cent in the preceding year. It was 7.5 per cent in 2014-15.

The Narendra Modi-led NDA government had assumed office in May 2014.

&quot;The growth in GDP during 2017-18 is estimated at 6.5 per cent as compared to the growth rate of 7.1 per cent in 2016- 17,&quot; said the Central Statistics Office (CSO) while announcing the first advance estimates of National Income 2017-18.

The growth of real Gross Value Added (GVA) in 2017-18 is anticipated at 6.1 per cent as against 6.6 per cent in the previous year.

Economic activities were affected by demonetisation announced on November 8, 2016 and subsequent implementation of a new indirect tax regime (GST) from July 1 in the current financial year.

As per the CSO data, the expansion in activities in &#39;agriculture, forestry and fishing&#39; is likely to slow to 2.1 per cent in the current fiscal from 4.9 per cent in the preceding year.

The growth in manufacturing sector too is expected to decelerate to 4.6 per cent this fiscal, down from 7.9 per cent in 2016-17.

The Gross Domestic Product (GDP) was 7.1 per cent in 2016-17 and 8 per cent in the preceding year. It was 7.5 per cent in 2014-15.

The economic growth is expected to slow to a four-year low of 6.5 per cent in 2017-18, the lowest under the Modi-led government, mainly due to poor performance of agriculture and manufacturing sectors. The Gross Domestic Product (GDP) was 7.1 per cent in 2016-17 and 8 per cent in the preceding year. It was 7.5 per cent in 2014-15. The Narendra Modi-led NDA government had assumed office in May 2014. "The growth in GDP during 2017-18 is estimated at 6.5 per cent as compared to the growth rate of 7.1 per cent in 2016- 17," said the Central Statistics Office (CSO) while announcing the first advance estimates of National Income 2017-18. The growth of real Gross Value Added (GVA) in 2017-18 is anticipated at 6.1 per cent as against 6.6 per cent in the previous year. Economic activities were affected by demonetisation announced on November 8, 2016 and subsequent implementation of a new indirect tax regime (GST) from July 1 in the current financial year. As per the CSO data, the expansion in activities in 'agriculture, forestry and fishing' is likely to slow to 2.1 per cent in the current fiscal from 4.9 per cent in the preceding year. The growth in manufacturing sector too is expected to decelerate to 4.6 per cent this fiscal, down from 7.9 per cent in 2016-17.

India's GDP growth to slow to four-year low of 6.5% in 2017-18

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

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

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

GDP growth in India to accelerate over coming year: HSBC

India can achieve an 8 per cent growth rate for the next two decades if it unleashes the next set of reforms that could help it in realising its full potential, according to a senior UN official.

The UN, in its latest report, projected India&#39;s growth rate to be 7.2 per cent in 2018 and 7.4 per cent in 2019.

Describing India&#39;s economic condition as largely positive and &quot;favourable to growth&quot;, Sebastian Vergara, an Economic Affairs Officer at the UN, said the country needs to unleash the next set of reforms to achieve its potential.

&quot;It needs to think as to how to maintain and consolidate its growth for a very long period of time. India in our assessment has the potential to grow at eight per cent, not for a few years, but 20 years,&quot; Vergara said.

&quot;For that, India needs to come out with the next series of reforms, for example, promote investment and improve the living condition of its population,&quot; he said.

The annual &#39;World Economic Situation Prospects&#39; report, released last week, said the GDP growth for India in 2017 is projected to be 6.7 per cent.

Despite the positive economic condition, Vergara said, India&#39;s economic growth could be a little lower in comparison to some of the earlier forecasts.

One of this is the growth of private consumption and sound macroeconomic policies. The monetary policy, which has been able to control inflation, also has a role to play, he said.

&quot;Also fiscal policy in India, in our assessment has been prudent. At the same time, it has provided another quite support for the economic activity,&quot; Vergara said.

The UN officer praised the Indian government&#39;s emphasis on public investment and infrastructure projects.

&quot;This has been very important to promote growth in the short term and to encourage economic activity in the medium term,&quot; he said.

The series of regulatory reforms that has happened in the previous year and the current one has also helped India&#39;s cause, said the UN official who keeps a tab on India&#39;s economic health and development.

&quot;Demonetisation clearly had an impact in early 2017. This resulted in a significant liquidity crunch, but was temporary,&quot; he said.

&quot;As the year went on, measures were implemented, financial relief were introduced, steps like credit support for small enterprise to help contain the shock that this demonetisation policy created,&quot; he said, adding that demonetisation has benefited the banking sector and increased the tax base - which will help the fiscal accounts.

&quot;So, in the medium term, we think that this policy will help the Indian economy,&quot; Vergara said.

According to the top UN economic official, 2017 has been a year of major economic reforms in India, particularly in the banking sector.

&quot;There has been deregulation and further liberalisation of the policies regarding foreign direct investment,&quot; he said.

Vergara said these reforms are helping the Indian economy to improve its efficiency and increase the medium-term prospects of its economy.

&quot;In that sense these policy reforms are positive. Of course, we will see how these policies are implemented,&quot; he said.

The UN, in its latest report, projected India's growth rate to be 7.2 per cent in 2018 and 7.4 per cent in 2019.

India can achieve an 8 per cent growth rate for the next two decades if it unleashes the next set of reforms that could help it in realising its full potential, according to a senior UN official. The UN, in its latest report, projected India's growth rate to be 7.2 per cent in 2018 and 7.4 per cent in 2019. Describing India's economic condition as largely positive and "favourable to growth", Sebastian Vergara, an Economic Affairs Officer at the UN, said the country needs to unleash the next set of reforms to achieve its potential. "It needs to think as to how to maintain and consolidate its growth for a very long period of time. India in our assessment has the potential to grow at eight per cent, not for a few years, but 20 years," Vergara said. "For that, India needs to come out with the next series of reforms, for example, promote investment and improve the living condition of its population," he said. The annual 'World Economic Situation Prospects' report, released last week, said the GDP growth for India in 2017 is projected to be 6.7 per cent. Despite the positive economic condition, Vergara said, India's economic growth could be a little lower in comparison to some of the earlier forecasts. One of this is the growth of private consumption and sound macroeconomic policies. The monetary policy, which has been able to control inflation, also has a role to play, he said. "Also fiscal policy in India, in our assessment has been prudent. At the same time, it has provided another quite support for the economic activity," Vergara said. The UN officer praised the Indian government's emphasis on public investment and infrastructure projects. "This has been very important to promote growth in the short term and to encourage economic activity in the medium term," he said. The series of regulatory reforms that has happened in the previous year and the current one has also helped India's cause, said the UN official who keeps a tab on India's economic health and development. "Demonetisation clearly had an impact in early 2017. This resulted in a significant liquidity crunch, but was temporary," he said. "As the year went on, measures were implemented, financial relief were introduced, steps like credit support for small enterprise to help contain the shock that this demonetisation policy created," he said, adding that demonetisation has benefited the banking sector and increased the tax base - which will help the fiscal accounts. "So, in the medium term, we think that this policy will help the Indian economy," Vergara said. According to the top UN economic official, 2017 has been a year of major economic reforms in India, particularly in the banking sector. "There has been deregulation and further liberalisation of the policies regarding foreign direct investment," he said. Vergara said these reforms are helping the Indian economy to improve its efficiency and increase the medium-term prospects of its economy. "In that sense these policy reforms are positive. Of course, we will see how these policies are implemented," he said.

India can grow at 8 per cent for next 20 years: UN expert

Ahead of <a href="http://www.wionews.com/world/brics-summit-day-2-pm-modi-president-xi-set-to-meet-today-19868">President Xi&#39;s re-election on October&nbsp;18th</a> by the Communist Party of China, India is being seen more as a &quot;frenemy&quot;, especially post-Doklam.

In a move which can be seen as a shift in <a href="http://www.wionews.com/world/china-first-quarter-gdp-grows-69-per-cent-better-than-expected-14590">relations with India, China&#39;s right-leaning Global Times </a>in its op-ed piece said economic competition between China and India should not be just limited to the comparison of GDP growth rates.

&quot;China has done much<a href="http://www.wionews.com/india-news/born-of-chaos-india-lumbers-amid-turmoil-says-china-daily-21017"> better than India in terms of poverty reduction</a> and raising living standards,&quot; the editorial said, &quot;thanks in large part to its effective and efficient policy implementation under the central government.&quot;

However, the editorial admitted that &quot;lifting the remaining poor out of poverty in China will be much more difficult&quot; compared with the past. &nbsp;&nbsp;

&quot;China&#39;s Gini coefficient, a measure of income distribution, rose from 33 in 1990 to 53 in 2013, while the Gini coefficient in India jumped from 45 in 1990 to 51 in 2013, according to another IMF report released in March 2016,&quot; the daily observed.

The Chinese daily said in India, cultural and political diversity &quot;increase difficulties for unified policy implementation&quot;, hindering the progress of anti-poverty efforts - a fact which many India experts would agree.

&quot;During the past three decades, China lifted 800 million people out of poverty, &nbsp;as for India, it obviously faces more difficulties in poverty reduction, with 30 per cent of its population living below the globally accepted poverty line of $1.90 a day,&quot; the daily said.&nbsp;

&quot;Given the consensus that high levels of inequality can do harm to the sustainability of growth, both countries have made great efforts to alleviate poverty in recent years,&quot; the daily said.&nbsp;

However, the China daily added that &quot;the key is which of them(China or India) can do more to reduce inequality and poverty&quot;.

&quot;The outcome will also identify the ones that have more genuine potential for economic growth,&quot; the op-ed piece concluded.

The editorial admitted that 'lifting the remaining poor out of poverty in China will be much more difficult' compared with the past ??

Ahead of President Xi's re-election on October 18th by the Communist Party of China, India is being seen more as a "frenemy", especially post-Doklam. In a move which can be seen as a shift in relations with India, China's right-leaning Global Times in its op-ed piece said economic competition between China and India should not be just limited to the comparison of GDP growth rates. "China has done much better than India in terms of poverty reduction and raising living standards," the editorial said, "thanks in large part to its effective and efficient policy implementation under the central government." However, the editorial admitted that "lifting the remaining poor out of poverty in China will be much more difficult" compared with the past. "China's Gini coefficient, a measure of income distribution, rose from 33 in 1990 to 53 in 2013, while the Gini coefficient in India jumped from 45 in 1990 to 51 in 2013, according to another IMF report released in March 2016," the daily observed. The Chinese daily said in India, cultural and political diversity "increase difficulties for unified policy implementation", hindering the progress of anti-poverty efforts - a fact which many India experts would agree. "During the past three decades, China lifted 800 million people out of poverty, as for India, it obviously faces more difficulties in poverty reduction, with 30 per cent of its population living below the globally accepted poverty line of $1.90 a day," the daily said. "Given the consensus that high levels of inequality can do harm to the sustainability of growth, both countries have made great efforts to alleviate poverty in recent years," the daily said. However, the China daily added that "the key is which of them(China or India) can do more to reduce inequality and poverty". "The outcome will also identify the ones that have more genuine potential for economic growth," the op-ed piece concluded.

India has lessons to learn from China's poverty reduction campaign: China daily

Finance Minister Arun Jaitley said on Wednesday that the<a href="http://www.wionews.com/business-economy/india-q1-economic-growth-slips-to-57-19725"> slowdown in India&#39;s GDP growth in the first quarter</a> to 5.7 per cent was a matter of concern.

&quot;It is certainly a matter of concern that first quarter GDP has come down to 5.7 per cent and it&#39;s obvious therefore that it throws a challenge for the economy,&quot; the finance minister said.

He said there was a requirement to improve policy and investment to improve upon these figures.

The finance minister attributed the de-stocking of inventories by the industry in anticipation of the Goods and Services Tax (GST)&nbsp;for an increase in sales and the reduction in manufacturing.

&quot;That manufacturing has fallen is essentially due to the anticipatory impact of GST. Since it came in July, most manufacturers were de-stocking,&quot; he said, noting that services growth had, however, improved during the quarter in question.

&quot;De-stocking of the manufacturing sector seems to have been completed, so the dip in manufacturing could be bottoming out from this quarter,&quot; he said.

&quot;Gross fixed capital ratio turned positive, investment improved...services improved,&quot; during the first quarter, he added.&nbsp;

The finance minister attributed the roll-out of the GST for the &quot;contradiction between services improving and manufacturing going down.&quot;

He said he was optimistic that the &quot;curve could turn for the better&quot; once GST was implemented.

The finance minister attributed the de-stocking of inventories by the industry in anticipation of the GST for an increase in trading and sales and the reduction in manufacturing.

Finance Minister Arun Jaitley said on Wednesday that the slowdown in India's GDP growth in the first quarter to 5.7 per cent was a matter of concern. "It is certainly a matter of concern that first quarter GDP has come down to 5.7 per cent and it's obvious therefore that it throws a challenge for the economy," the finance minister said. He said there was a requirement to improve policy and investment to improve upon these figures. The finance minister attributed the de-stocking of inventories by the industry in anticipation of the Goods and Services Tax (GST) for an increase in sales and the reduction in manufacturing. "That manufacturing has fallen is essentially due to the anticipatory impact of GST. Since it came in July, most manufacturers were de-stocking," he said, noting that services growth had, however, improved during the quarter in question. "De-stocking of the manufacturing sector seems to have been completed, so the dip in manufacturing could be bottoming out from this quarter," he said. "Gross fixed capital ratio turned positive, investment improved...services improved," during the first quarter, he added. The finance minister attributed the roll-out of the GST for the "contradiction between services improving and manufacturing going down." He said he was optimistic that the "curve could turn for the better" once GST was implemented.

Slowdown in GDP matter of concern: Arun Jaitley

India defied expectations on Tuesday to retain the title of the world&#39;s fastest growing major economy, despite the pain caused by Prime Minister Narendra Modi&#39;s shock crackdown on cash.

Annual gross domestic product (GDP) growth for the October-December period came in at 7.0 percent, a tad slower than 7.4 percent in the previous quarter but much faster than the 6.4 percent expansion forecast by economists in a Reuters poll.

It was also higher than China&#39;s 6.8 percent growth for the last three months of 2016.

PM Modi&#39;s decision last November to outlaw old 500 rupee and 1,000 rupee banknotes was widely expected to exact a heavy toll on an economy where most people are paid in cash and buy what they need with cash.

Little surprise, then, that Tuesday&#39;s robust GDP figures have left economists dazed, and have also raised fresh doubts about the quality of India&#39;s official economic data reporting.

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<h5>Perhaps this data is not capturing the impact of demonetisation,&#39; said Aneesh Srivastava, chief investment officer, IDBI Federal Life Insurance Co. &#39;I am totally surprised and stunned to see this number&#39;</h5>
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&quot;Perhaps this data is not capturing the impact of demonetisation,&quot; said Aneesh Srivastava, chief investment officer, IDBI Federal Life Insurance Co.

&quot;I am totally surprised and stunned to see this number.&quot;

Vindication

PM Modi had received flak for his shock monetary therapy from political opponents as well as prominent economists such as Amartya Sen and Paul Krugman. The move sucked 86 percent of the currency out of circulation virtually overnight and left many companies, farmers and households in misery.

Anecdotal evidence suggested massive job losses following the cash crunch in India&#39;s vast informal sector, which not only supports the formal sector but also employs nine out of 10 workers.

The government as well as the Reserve Bank of India (RBI), however, all maintained the pain would be short-lived and predicted a sharp economic rebound.

The latest GDP data vindicated their assessment.

&quot;The numbers completely negate the kind of negative projections and speculations which were made about the impact of demonetisation,&quot; Economic Affairs Secretary Shaktikanta Das told reporters after the data release.

The strong performance in the Oct-Dec period allowed the government statistics office to retain its growth forecast for the fiscal year that ends in March 2017 at 7.1 percent.

Strong growth figures would also dash hopes of further interest rate cuts by the central bank, which has shifted its focus squarely to inflation.

The Reserve Bank of India (RBI) left the policy repo rate on hold at 6.25 percent for a second meeting in a row this month and signalled an end to its longest easing cycle since the global financial crisis, citing growing inflationary risks.

&quot;With inflation pressures also building, we think that the RBI could begin hiking rates over the next 12-18 months,&quot; analysts at Capital Economics wrote in a note.

Credibilty

The strong data have also reignited the debate about the credibility as well as the quality of the official GDP data.

Ever since India changed its methodology to measure economic activity two years back, which transformed a sluggish economy into the world&#39;s fastest-growing major economy overnight, private economists have been struggling to square it with the not so rosy reality on the ground.

The latest data has only added to the confusion.

For example, the official figures show economic growth was primarily driven by consumer spending, offsetting a fall in government expenditure. However, this is not backed up by the earnings of consumer goods firms in the last quarter.

As cash-strapped households turned wary, sales of various goods from beverages to domestic appliances to cars all plunged. The lacklustre consumer spending prompted several companies to trim their revenue outlook.

Consumer confidence also fell sharply, with households uncertain about their income, employment and spending capability, according to an RBI survey published this month.

&quot;There are widespread doubts about the accuracy of the national accounts numbers,&quot; analysts at Capital Economics wrote. &quot;The unexpected strength of today&#39;s data will do nothing to allay these concerns.&quot;

(Reuters)

Tuesday's GDP figures have left economists dazed & raised fresh doubts about the quality of the country's official economic data reporting

India defied expectations on Tuesday to retain the title of the world's fastest growing major economy, despite the pain caused by Prime Minister Narendra Modi's shock crackdown on cash. Annual gross domestic product (GDP) growth for the October-December period came in at 7.0 percent, a tad slower than 7.4 percent in the previous quarter but much faster than the 6.4 percent expansion forecast by economists in a Reuters poll. It was also higher than China's 6.8 percent growth for the last three months of 2016. PM Modi's decision last November to outlaw old 500 rupee and 1,000 rupee banknotes was widely expected to exact a heavy toll on an economy where most people are paid in cash and buy what they need with cash. Little surprise, then, that Tuesday's robust GDP figures have left economists dazed, and have also raised fresh doubts about the quality of India's official economic data reporting. Perhaps this data is not capturing the impact of demonetisation,' said Aneesh Srivastava, chief investment officer, IDBI Federal Life Insurance Co. 'I am totally surprised and stunned to see this number' × "Perhaps this data is not capturing the impact of demonetisation," said Aneesh Srivastava, chief investment officer, IDBI Federal Life Insurance Co. "I am totally surprised and stunned to see this number." Vindication PM Modi had received flak for his shock monetary therapy from political opponents as well as prominent economists such as Amartya Sen and Paul Krugman. The move sucked 86 percent of the currency out of circulation virtually overnight and left many companies, farmers and households in misery. Anecdotal evidence suggested massive job losses following the cash crunch in India's vast informal sector, which not only supports the formal sector but also employs nine out of 10 workers. The government as well as the Reserve Bank of India (RBI), however, all maintained the pain would be short-lived and predicted a sharp economic rebound. The latest GDP data vindicated their assessment. "The numbers completely negate the kind of negative projections and speculations which were made about the impact of demonetisation," Economic Affairs Secretary Shaktikanta Das told reporters after the data release. The strong performance in the Oct-Dec period allowed the government statistics office to retain its growth forecast for the fiscal year that ends in March 2017 at 7.1 percent. Strong growth figures would also dash hopes of further interest rate cuts by the central bank, which has shifted its focus squarely to inflation. The Reserve Bank of India (RBI) left the policy repo rate on hold at 6.25 percent for a second meeting in a row this month and signalled an end to its longest easing cycle since the global financial crisis, citing growing inflationary risks. "With inflation pressures also building, we think that the RBI could begin hiking rates over the next 12-18 months," analysts at Capital Economics wrote in a note. Credibilty The strong data have also reignited the debate about the credibility as well as the quality of the official GDP data. Ever since India changed its methodology to measure economic activity two years back, which transformed a sluggish economy into the world's fastest-growing major economy overnight, private economists have been struggling to square it with the not so rosy reality on the ground. The latest data has only added to the confusion. For example, the official figures show economic growth was primarily driven by consumer spending, offsetting a fall in government expenditure. However, this is not backed up by the earnings of consumer goods firms in the last quarter. As cash-strapped households turned wary, sales of various goods from beverages to domestic appliances to cars all plunged. The lacklustre consumer spending prompted several companies to trim their revenue outlook. Consumer confidence also fell sharply, with households uncertain about their income, employment and spending capability, according to an RBI survey published this month. "There are widespread doubts about the accuracy of the national accounts numbers," analysts at Capital Economics wrote. "The unexpected strength of today's data will do nothing to allay these concerns." (Reuters)

Govt says India grew at 7% but was the data right?

India&#39;s economic growth rate fell to seven percent in the third quarter of the financial year after the controversial ban on high-value banks notes in November, the government said Tuesday.

Gross domestic product in one of the world&#39;s fastest growing economies expanded 7.0 percent year-on-year in the three months to the end of December, down from 7.3 percent in the previous quarter, official figures showed.

While growth came in lower than the previous quarter, it exceeded most analysts&#39;&nbsp;predictions in the wake of the government&#39;s shock move to remove all 500 and 1,000 rupee notes from circulation immediately.

Prime Minister Narendra Modi has defended his so-called demonetisation scheme as a necessary strike against corruption.

But the move triggered massive lines outside banks in the weeks afterwards as authorities struggled to print replacement notes fast enough.&nbsp;

India&#39;s chief statistician TCA Anant told reporters after the data was announced on Tuesday that it was difficult to assess the full impact of demonetisation, which the government had already acknowledged has hit growth.

&quot;Policies like demonetisation are very difficult to assess without a lot of data,&quot; Anant told a press conference.

&quot;We will keep evaluating the numbers. I will not like to draw any conclusions at this stage.&quot;

Anant said some sectors such as agriculture and mining had in fact performed better than expected in the third quarter.

&quot;The only two sectors in which it is distinctly worse is finance and the real estate category,&quot; he added.

&quot;The aggregate of deposits and credits is comparable but on the lower side.&quot;

(AFP)

Most analysts had predicted a much larger slump in growth because of the note ban

India's economic growth rate fell to seven percent in the third quarter of the financial year after the controversial ban on high-value banks notes in November, the government said Tuesday. Gross domestic product in one of the world's fastest growing economies expanded 7.0 percent year-on-year in the three months to the end of December, down from 7.3 percent in the previous quarter, official figures showed. While growth came in lower than the previous quarter, it exceeded most analysts' predictions in the wake of the government's shock move to remove all 500 and 1,000 rupee notes from circulation immediately. Prime Minister Narendra Modi has defended his so-called demonetisation scheme as a necessary strike against corruption. But the move triggered massive lines outside banks in the weeks afterwards as authorities struggled to print replacement notes fast enough. India's chief statistician TCA Anant told reporters after the data was announced on Tuesday that it was difficult to assess the full impact of demonetisation, which the government had already acknowledged has hit growth. "Policies like demonetisation are very difficult to assess without a lot of data," Anant told a press conference. "We will keep evaluating the numbers. I will not like to draw any conclusions at this stage." Anant said some sectors such as agriculture and mining had in fact performed better than expected in the third quarter. "The only two sectors in which it is distinctly worse is finance and the real estate category," he added. "The aggregate of deposits and credits is comparable but on the lower side." (AFP)

Government says India grew at 7% between Oct-Dec despite demonetisation

The Indian government on Friday forecast a slowdown in the country&#39;s GDP growth to to 7.1 per cent in 2016-17, from 7.6 per cent last year. The government data released today attributed the lower growth rate mainly to a slump in manufacturing, mining and construction sectors.

In a break from departure, the estimates are based on data of seven months till October without taking into account &quot;volatile&quot; figures post post-demonetisation in the months of November and December.

Chief Statistician TCA Anant, who released the data compiled by the Central Statistics Office (CSO), said the figures for November were available and examined but &quot;it was felt in view of the policy of denotification of notes there is a high degree of volatility in these figures and conscious decision was taken not make projection using the November figures.&quot;

&quot;The growth in GDP during 2016-17 is estimated at 7.1 per cent as compared to the growth rate of 7.6 per cent in 2015- 16,&quot; the CSO said.&nbsp;

As per the data, the per capita net national income (current prices) during 2016-17 is estimated to be Rs 1,03,007 &mdash; a &nbsp;rise of 10.4 per cent as compared to Rs 93,293 during 2015-16 with the growth rate of 7.4 per cent.&nbsp;

Until last year, the government&#39;s statisticians would wait for GDP data for the quarter through December before putting out full-year estimates. This year December quarter figures will not be available before the end of February, making the projection largely reliant on the economy&#39;s performance in the period before demonetisation, when consumer demand was strong, Reuters reported.

The CSO will release the demonetisation data on February 28, along with revised full-year growth estimates.

&#39;Agriculture, forestry and fishing&#39; is expected to grow by 4.1 per cent in 2016-17 from 1.2 per cent last fiscal, PTI reported citing data released by the government. Mining and quarrying is likely to contract by 1.8 per cent after growing at 7.4 per cent in 2015-16. Growth in manufacturing is expected to slow to 7.4 per cent (from 9.3 per cent) and construction activities to 2.9 per cent (from 3.9 per cent).

Real GDP or Gross Domestic Product (GDP) at constant (2011-12) prices in the year 2016-17 is likely to attain a level of Rs 121.55 lakh crore, as against the Provisional Estimate of GDP for the year 2015-16 of Rs 113.50 lakh crore, released May 31, 2016.

The CSO also said projections on national income are now in line with estimates of India&#39;s central bank, Reserve Bank of India, which too has lowered the GDP growth prospects to 7.1 per cent. &quot;Anticipated growth of real &nbsp;Gross Value Added (GVA) at basic prices in 2016-17 is 7 per cent against 7.2 per cent in 2015-16,&quot; the CSO said.

In value terms, the (GVA) at constant prices is anticipated to increase from Rs 104.27 lakh crore in 2015-16 to Rs 111.53 lakh crore in 2016-17.

Private economists&#39; projections&nbsp;at 6.3-6.4%

Most private economists have pegged India&#39;s growth forecast to 6.3 per cent to 6.4 per cent for 2016-17 fiscal year, citing the impact of the demonetisation, Reuters reports. They estimate that the impact of demonetisation of Rs 500 and Rs 1000 notes, which came into effect from November 8, would linger for one more year.

Aneesh srivastava, chief investment officer, IDBI Federal Life Insurance company told Reuters, &quot;I am very worried with the projected growth rate. The methodology followed excludes demonetisation, but still the projected rate of 7.1 per cent is below my estimate of 7.5 per cent.

&quot;Take demonetisation into account, the rate will substantially drop. My estimates taking demonetisation into account was 6.8 percent, but now it will much lesser than that, he added.&quot;

&quot;Since the dollar is strengthening and global dynamics are not in our favour, I expect RBI to cut rate by 25 bps as early as February.&quot;&nbsp;

Varun Khandelwal, managing director, Bullero Capital, told Reuters, &quot;Based on statistical measures, it is very difficult to factor in the impact on demonetisation. Mostly the impact of demonetisation will be proportionally higher in micro, smaller and medium scale enterprises.

&quot;For FY17 our growth estimate range is lower at 5.5-6.5 per cent and this will depend on the future course of policy actions, the time taken for cash to come back into the system and what kind of budget we have.&quot; 
Friday&#39;s GDP estimate is a vital input for Finance Minister Arun Jaitley&#39;s budget on February 1.&nbsp;

(WION with inputs from agencies)

 
&nbsp;

The growth rate has slowed down from 7.6% a year earlier. The data does not take into account the post-demonetisation figures

The Indian government on Friday forecast a slowdown in the country's GDP growth to to 7.1 per cent in 2016-17, from 7.6 per cent last year. The government data released today attributed the lower growth rate mainly to a slump in manufacturing, mining and construction sectors. In a break from departure, the estimates are based on data of seven months till October without taking into account "volatile" figures post post-demonetisation in the months of November and December. Chief Statistician TCA Anant, who released the data compiled by the Central Statistics Office (CSO), said the figures for November were available and examined but "it was felt in view of the policy of denotification of notes there is a high degree of volatility in these figures and conscious decision was taken not make projection using the November figures." "The growth in GDP during 2016-17 is estimated at 7.1 per cent as compared to the growth rate of 7.6 per cent in 2015- 16," the CSO said. As per the data, the per capita net national income (current prices) during 2016-17 is estimated to be Rs 1,03,007 — a rise of 10.4 per cent as compared to Rs 93,293 during 2015-16 with the growth rate of 7.4 per cent. Until last year, the government's statisticians would wait for GDP data for the quarter through December before putting out full-year estimates. This year December quarter figures will not be available before the end of February, making the projection largely reliant on the economy's performance in the period before demonetisation, when consumer demand was strong, Reuters reported. The CSO will release the demonetisation data on February 28, along with revised full-year growth estimates. 'Agriculture, forestry and fishing' is expected to grow by 4.1 per cent in 2016-17 from 1.2 per cent last fiscal, PTI reported citing data released by the government. Mining and quarrying is likely to contract by 1.8 per cent after growing at 7.4 per cent in 2015-16. Growth in manufacturing is expected to slow to 7.4 per cent (from 9.3 per cent) and construction activities to 2.9 per cent (from 3.9 per cent). Real GDP or Gross Domestic Product (GDP) at constant (2011-12) prices in the year 2016-17 is likely to attain a level of Rs 121.55 lakh crore, as against the Provisional Estimate of GDP for the year 2015-16 of Rs 113.50 lakh crore, released May 31, 2016. The CSO also said projections on national income are now in line with estimates of India's central bank, Reserve Bank of India, which too has lowered the GDP growth prospects to 7.1 per cent. "Anticipated growth of real Gross Value Added (GVA) at basic prices in 2016-17 is 7 per cent against 7.2 per cent in 2015-16," the CSO said. In value terms, the (GVA) at constant prices is anticipated to increase from Rs 104.27 lakh crore in 2015-16 to Rs 111.53 lakh crore in 2016-17. Private economists' projections at 6.3-6.4% Most private economists have pegged India's growth forecast to 6.3 per cent to 6.4 per cent for 2016-17 fiscal year, citing the impact of the demonetisation, Reuters reports. They estimate that the impact of demonetisation of Rs 500 and Rs 1000 notes, which came into effect from November 8, would linger for one more year. Aneesh srivastava, chief investment officer, IDBI Federal Life Insurance company told Reuters, "I am very worried with the projected growth rate. The methodology followed excludes demonetisation, but still the projected rate of 7.1 per cent is below my estimate of 7.5 per cent. "Take demonetisation into account, the rate will substantially drop. My estimates taking demonetisation into account was 6.8 percent, but now it will much lesser than that, he added." "Since the dollar is strengthening and global dynamics are not in our favour, I expect RBI to cut rate by 25 bps as early as February." Varun Khandelwal, managing director, Bullero Capital, told Reuters, "Based on statistical measures, it is very difficult to factor in the impact on demonetisation. Mostly the impact of demonetisation will be proportionally higher in micro, smaller and medium scale enterprises. "For FY17 our growth estimate range is lower at 5.5-6.5 per cent and this will depend on the future course of policy actions, the time taken for cash to come back into the system and what kind of budget we have." Friday's GDP estimate is a vital input for Finance Minister Arun Jaitley's budget on February 1. (WION with inputs from agencies)

Indian government forecasts lower growth rate of 7.1% in 2016-17

India remained the fastest growing major economy with its GDP accelerating to 7.3 per cent in the September quarter, pushed mainly by farm output, although the momentum may be hit in the coming months by the impact of demonetisation.

The Gross Domestic Product (GDP) or national income which rose from 7.1 per cent in the previous quarter is, however, lower than 7.6 per cent recorded in the same period last year.

India overtook China in economic growth rate in 2015, and continues to be the world&#39;s fastest growing large economy.

Meanwhile, monthly macro-economic data on performance of eight infrastructure sectors showed six-month high growth of 6.6 per cent in October.

According to the data released today by the Central Statistics Office (CSO), the Gross Value Added (GVA), which is estimated at the basic price, growth decelerated to 7.1 per cent as compared 7.3 per cent both in the previous as well as the year ago period.

The data revealed that over 7 per cent growth was recorded by &#39;public administration, defence and other services&#39;, &#39;financial, insurance, real estate and professional services&#39;, &#39;manufacturing&#39; and &#39;trade, hotels and transport and communication and services related to broadcasting&#39;.

Growth rates in agriculture, forestry and fishing; mining and quarrying; electricity, gas, water supply and other utility services; and construction were at 3.3 per cent, (-)1.5 per cent, 3.5 per cent and 3.5 per cent respectively. This compares with 2 per cent, 5 per cent, 7.5 per cent and 0.8 per cent year ago period.

Manufacturing slowed to 7.1 per cent from 9.2 per cent in the year-ago period. On the impact of demonetisation of old Rs 500/1000 notes on growth prospects, Chief Statistician T C A Anant said statements made by experts on the adverse impact of demonetisation is made without any data.

&quot;People make assumptions and based on that they make statements. Once the data comes in, I will make a statement,&quot; he said at a press conference.

Chief Economic Adviser Arvind Subramanian said: &quot;What we have for first half are actual numbers. It shows good consistent performance. For second half we will have to see, there are a lot of uncertainties. We have to analyse it before we say something&quot;.

What is worrying, however, is the decline in Gross Fixed Capital Formation (GFCF) an indicator of investment.

GFCF growth rates at current and constant prices are estimated at (-)3.2 per cent and (-)5.6 per cent during Q2 of 2016-17 as compared to 7.5 per cent and 9.7 per cent during Q2 of 2015-16.&nbsp;

Talking about challenges, Subramanian said investment was down substantially in the second quarter and that is something that needs to be watched.

Referring to the impact of demonetisation of 500 and 1000 rupee notes by the government earlier this month, CII Director General Chandrajit Banerjee said that it would be a &quot;temporary setback&quot; to growth in the coming quarter.

As per CSO, GDP at constant (2011-12) prices in the second quarter of 2016-17 is estimated at Rs 29.63 lakh crore, as against Rs 27.62 lakh crore in the year-ago period.

The quarterly GVA at basic price at constant (2011-12) prices for July-September is estimated at Rs 27.33 lakh crore, as against Rs 25.52 lakh crore year-on-year.

Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 5.15 lakh crore for the second quarter as against Rs 4.27 lakh crore year ago.

At constant (2011-2012) prices, the GFCE is estimated at Rs 3.84 lakh crore as against Rs 3.33 lakh crore.

In terms of GDP, the rates of GFCE at current and constant prices during the second quarter are estimated at 14.1 per cent and 13 per cent respectively, as against the corresponding rate of 13.1 per cent and 12.1 per cent in the same period of 2015-16.

Chief Statistician Anant also informed that the &#39;advance estimates&#39; for national accounts data for the current fiscal will be released on January 7, a month in advance.

The data release date is being advanced as government would be presenting the annual budget a month ahead of the usual practice of unveiling it on last working day of February.

The data on eight core infrastructure sectors recorded a growth rate of 6.6 per cent in October on the back of impressive performance by steel and refinery products.

However, growth rate of power generation, fertiliser production and cement output fell considerably on a year-on-year basis. Coal production continued to fall for the third straight month.

The core infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- showed 3.8 per cent in October last year.

Core sector contributes 38 per cent to the total industrial production. 
 
(PTI)

The GDP was, however, lower than 7.6 per cent recorded in the same period last year.

India remained the fastest growing major economy with its GDP accelerating to 7.3 per cent in the September quarter, pushed mainly by farm output, although the momentum may be hit in the coming months by the impact of demonetisation. The Gross Domestic Product (GDP) or national income which rose from 7.1 per cent in the previous quarter is, however, lower than 7.6 per cent recorded in the same period last year. India overtook China in economic growth rate in 2015, and continues to be the world's fastest growing large economy. Meanwhile, monthly macro-economic data on performance of eight infrastructure sectors showed six-month high growth of 6.6 per cent in October. According to the data released today by the Central Statistics Office (CSO), the Gross Value Added (GVA), which is estimated at the basic price, growth decelerated to 7.1 per cent as compared 7.3 per cent both in the previous as well as the year ago period. The data revealed that over 7 per cent growth was recorded by 'public administration, defence and other services', 'financial, insurance, real estate and professional services', 'manufacturing' and 'trade, hotels and transport and communication and services related to broadcasting'. Growth rates in agriculture, forestry and fishing; mining and quarrying; electricity, gas, water supply and other utility services; and construction were at 3.3 per cent, (-)1.5 per cent, 3.5 per cent and 3.5 per cent respectively. This compares with 2 per cent, 5 per cent, 7.5 per cent and 0.8 per cent year ago period. Manufacturing slowed to 7.1 per cent from 9.2 per cent in the year-ago period. On the impact of demonetisation of old Rs 500/1000 notes on growth prospects, Chief Statistician T C A Anant said statements made by experts on the adverse impact of demonetisation is made without any data. "People make assumptions and based on that they make statements. Once the data comes in, I will make a statement," he said at a press conference. Chief Economic Adviser Arvind Subramanian said: "What we have for first half are actual numbers. It shows good consistent performance. For second half we will have to see, there are a lot of uncertainties. We have to analyse it before we say something". What is worrying, however, is the decline in Gross Fixed Capital Formation (GFCF) an indicator of investment. GFCF growth rates at current and constant prices are estimated at (-)3.2 per cent and (-)5.6 per cent during Q2 of 2016-17 as compared to 7.5 per cent and 9.7 per cent during Q2 of 2015-16. Talking about challenges, Subramanian said investment was down substantially in the second quarter and that is something that needs to be watched. Referring to the impact of demonetisation of 500 and 1000 rupee notes by the government earlier this month, CII Director General Chandrajit Banerjee said that it would be a "temporary setback" to growth in the coming quarter. As per CSO, GDP at constant (2011-12) prices in the second quarter of 2016-17 is estimated at Rs 29.63 lakh crore, as against Rs 27.62 lakh crore in the year-ago period. The quarterly GVA at basic price at constant (2011-12) prices for July-September is estimated at Rs 27.33 lakh crore, as against Rs 25.52 lakh crore year-on-year. Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 5.15 lakh crore for the second quarter as against Rs 4.27 lakh crore year ago. At constant (2011-2012) prices, the GFCE is estimated at Rs 3.84 lakh crore as against Rs 3.33 lakh crore. In terms of GDP, the rates of GFCE at current and constant prices during the second quarter are estimated at 14.1 per cent and 13 per cent respectively, as against the corresponding rate of 13.1 per cent and 12.1 per cent in the same period of 2015-16. Chief Statistician Anant also informed that the 'advance estimates' for national accounts data for the current fiscal will be released on January 7, a month in advance. The data release date is being advanced as government would be presenting the annual budget a month ahead of the usual practice of unveiling it on last working day of February. The data on eight core infrastructure sectors recorded a growth rate of 6.6 per cent in October on the back of impressive performance by steel and refinery products. However, growth rate of power generation, fertiliser production and cement output fell considerably on a year-on-year basis. Coal production continued to fall for the third straight month. The core infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- showed 3.8 per cent in October last year. Core sector contributes 38 per cent to the total industrial production. (PTI)

India's GDP increases to 7.3% in second quarter

India&rsquo;s GDP growth will remain strong, a World Bank report released Tuesday has said.

According to the report, India will grow at&nbsp;7.6 per cent in 2016 and at 7.7 per cent in 2017. &nbsp;

&quot;In India, GDP growth will remain strong at 7.6 per cent in 2016 and 7.7 per cent in 2017, supported by expectations of a rebound in agriculture, civil service pay reforms supporting consumption, increasingly positive contributions from exports and a recovery of private investment in the medium term,&quot; the World Bank said in its latest report on South Asia Economic Focus released yesterday, PTI reported.

&quot;However, India faces the challenge of further accelerating the responsiveness of poverty reduction to growth, promoting inclusion, and extending gains to a broader range of human development outcomes related to health, nutrition, education and gender,&quot; said the biannual report.

The report&nbsp;added&nbsp;that South Asia remains a global growth hotspot and has not been affected by the slowdown in China, uncertainty around stimulus policy in advanced economies, and slowing remittances, PTI reported.

The report also talked&nbsp;about GDP growth in Pakistan and Bangladesh.

In Pakistan, economic activity is projected to gradually accelerate over the medium term reaching 5&nbsp;per cent in 2017 and 5.4 per cent in 2018, building upon 4.7 per cent GDP growth at factor cost in 2016 (5.7 per cent at market prices), PTI reported.

Growth in Bangladesh has remained robust despite internal and external headwinds, it said. Growth will be sustained at 6.8 per cent in 2017, coming slightly down from 7.1 per cent in 2016, the report added.

(WION with inputs from PTI)

The bank said the country's GDP would grow at 7.6% in 2016 and 7.7% in 2017

India’s GDP growth will remain strong, a World Bank report released Tuesday has said. According to the report, India will grow at 7.6 per cent in 2016 and at 7.7 per cent in 2017. "In India, GDP growth will remain strong at 7.6 per cent in 2016 and 7.7 per cent in 2017, supported by expectations of a rebound in agriculture, civil service pay reforms supporting consumption, increasingly positive contributions from exports and a recovery of private investment in the medium term," the World Bank said in its latest report on South Asia Economic Focus released yesterday, PTI reported. "However, India faces the challenge of further accelerating the responsiveness of poverty reduction to growth, promoting inclusion, and extending gains to a broader range of human development outcomes related to health, nutrition, education and gender," said the biannual report. The report added that South Asia remains a global growth hotspot and has not been affected by the slowdown in China, uncertainty around stimulus policy in advanced economies, and slowing remittances, PTI reported. The report also talked about GDP growth in Pakistan and Bangladesh. In Pakistan, economic activity is projected to gradually accelerate over the medium term reaching 5 per cent in 2017 and 5.4 per cent in 2018, building upon 4.7 per cent GDP growth at factor cost in 2016 (5.7 per cent at market prices), PTI reported. Growth in Bangladesh has remained robust despite internal and external headwinds, it said. Growth will be sustained at 6.8 per cent in 2017, coming slightly down from 7.1 per cent in 2016, the report added. (WION with inputs from PTI)

India to grow at over 7% in 2016 & 17: World Bank

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