India's macroeconomic fundamentals are much stronger, and the country is all set for robust growth on the back of structural reforms, the government's capex push and rapid vaccination, India's Chief Economic Advisor KV&nbsp;Subramanian said on Tuesday.

Briefing media on the growth number, he said the GDP data for the first quarter reaffirms the government's prediction of an imminent V-shaped recovery made last year.

India's economic growth surged to 20.1 per cent in the April-June quarter of this fiscal, helped by a low base in the year-ago period, amid a devastating second wave of the COVID-19.

The gross domestic product (GDP) had contracted by 24.4 per cent in the corresponding April-June quarter of 2020-21, according to data released by the National Statistical Office (NSO) on Tuesday.

On the inflation, he said it has witnessed a moderation in July compared to the previous month.

"Our expectation is that the inflation in the next few months should be within that range, between 5-6 per cent, but less than 6 per cent" despite hardening global commodity prices, he said.

India's macroeconomic fundamentals are much stronger, and the country is all set for robust growth on the back of structural reforms, the government's capex push and rapid vaccination, India's Chief Economic Advisor KV Subramanian said on Tuesday.

India's macroeconomic fundamentals are much stronger, and the country is all set for robust growth on the back of structural reforms, the government's capex push and rapid vaccination, India's Chief Economic Advisor KV Subramanian said on Tuesday. Briefing media on the growth number, he said the GDP data for the first quarter reaffirms the government's prediction of an imminent V-shaped recovery made last year. India's economic growth surged to 20.1 per cent in the April-June quarter of this fiscal, helped by a low base in the year-ago period, amid a devastating second wave of the COVID-19. The gross domestic product (GDP) had contracted by 24.4 per cent in the corresponding April-June quarter of 2020-21, according to data released by the National Statistical Office (NSO) on Tuesday. On the inflation, he said it has witnessed a moderation in July compared to the previous month. "Our expectation is that the inflation in the next few months should be within that range, between 5-6 per cent, but less than 6 per cent" despite hardening global commodity prices, he said.

India poised for stronger growth on structural reforms, govt capex push, says chief economic advisor

India's economic growth surged to 20.1 per cent in the April-June quarter of this fiscal, helped by a low base of the year-ago period, despite a devastating second wave of COVID-19.

The gross domestic product (GDP) had contracted by 24.4 per cent in the corresponding April-June quarter of 2020-21, according to data released by the National Statistical Office (NSO) on Tuesday.

The government had imposed a nationwide lockdown at the onset of the COVID-19 pandemic last year.

This year, the massive second wave of the pandemic hit the country in the middle of April, which forced states to impose fresh restrictions.

However, the economy has still not returned to the pre-COVID level.

In value terms, the GDP stood at Rs 32,38,020 crore in April-June 2021-22, lower than Rs 35,66,708 crore in the corresponding period of the 2019-20 financial year.

The GDP had shrunk to Rs 26,95,421 crore in April-June last year during the nationwide lockdown.

"GDP at Constant (2011-12) Prices in Q1 of 2021-22 is estimated at Rs 32.38 lakh crore, as against Rs 26.95 lakh crore in Q1 of 2020-21, showing a growth of 20.1 percent as compared to contraction of 24.4 per cent in Q1 2020-21," the NSO said in a statement.

With a view to containing the second wave of the pandemic, localised and calibrated lockdowns were imposed during the first quarter of 2021-22, it added.

Restrictions were imposed on the economic activities not deemed essential, as also on the movement of people.

"The lockdown instructions in various States were duly considered by the National Statistical Office. The impact on economic activities and the data collection mechanisms owing to COVID-19 pandemic has an effect on the Quarterly GDP estimates also.

"The impact of these measures on overall economic activity are embedded in source data," it stated. 
According to the NSO data, gross value added (GVA) growth in the manufacturing sector accelerated to 49.6 per cent in the first quarter of 2021-22, compared to a contraction 36 per cent a year ago.

Farm sector GVA growth was up at 4.5 per cent, compared to 3.5 per cent earlier.

Construction sector GVA grew by 68.3 per cent compared to 49.5 per cent contraction earlier. Mining sector grew by 18.6 per cent, as against a contraction of 17.2 per cent a year ago.

Electricity, gas, water supply and other utility services segment grew by 14.3 per cent in the first quarter of this fiscal, against 9.9 per cent contraction a year ago.

Similarly, trade, hotel, transport, communication and services related to broadcasting grew by 34.3 per cent compared to 48.1 per cent contraction earlier.

Financial, real estate and professional services grew by 3.7 per cent in Q1 FY22 compared to a contraction of 5 per cent.

Public administration, defence and other services grew at 5.8 per cent during the quarter under review, compared to (-) 10.2 per cent a year earlier.

Meanwhile, China has posted a growth of 7.9 per cent in the April-June period of 2021.

India's economic growth surged to 20.1 per cent in the April-June quarter of this fiscal, helped by a low base of the year-ago period, despite a devastating second wave of COVID-19.

India's economic growth surged to 20.1 per cent in the April-June quarter of this fiscal, helped by a low base of the year-ago period, despite a devastating second wave of COVID-19. The gross domestic product (GDP) had contracted by 24.4 per cent in the corresponding April-June quarter of 2020-21, according to data released by the National Statistical Office (NSO) on Tuesday. The government had imposed a nationwide lockdown at the onset of the COVID-19 pandemic last year. This year, the massive second wave of the pandemic hit the country in the middle of April, which forced states to impose fresh restrictions. However, the economy has still not returned to the pre-COVID level. In value terms, the GDP stood at Rs 32,38,020 crore in April-June 2021-22, lower than Rs 35,66,708 crore in the corresponding period of the 2019-20 financial year. The GDP had shrunk to Rs 26,95,421 crore in April-June last year during the nationwide lockdown. "GDP at Constant (2011-12) Prices in Q1 of 2021-22 is estimated at Rs 32.38 lakh crore, as against Rs 26.95 lakh crore in Q1 of 2020-21, showing a growth of 20.1 percent as compared to contraction of 24.4 per cent in Q1 2020-21," the NSO said in a statement. With a view to containing the second wave of the pandemic, localised and calibrated lockdowns were imposed during the first quarter of 2021-22, it added. Restrictions were imposed on the economic activities not deemed essential, as also on the movement of people. "The lockdown instructions in various States were duly considered by the National Statistical Office. The impact on economic activities and the data collection mechanisms owing to COVID-19 pandemic has an effect on the Quarterly GDP estimates also. "The impact of these measures on overall economic activity are embedded in source data," it stated. According to the NSO data, gross value added (GVA) growth in the manufacturing sector accelerated to 49.6 per cent in the first quarter of 2021-22, compared to a contraction 36 per cent a year ago. Farm sector GVA growth was up at 4.5 per cent, compared to 3.5 per cent earlier. Construction sector GVA grew by 68.3 per cent compared to 49.5 per cent contraction earlier. Mining sector grew by 18.6 per cent, as against a contraction of 17.2 per cent a year ago. Electricity, gas, water supply and other utility services segment grew by 14.3 per cent in the first quarter of this fiscal, against 9.9 per cent contraction a year ago. Similarly, trade, hotel, transport, communication and services related to broadcasting grew by 34.3 per cent compared to 48.1 per cent contraction earlier. Financial, real estate and professional services grew by 3.7 per cent in Q1 FY22 compared to a contraction of 5 per cent. Public administration, defence and other services grew at 5.8 per cent during the quarter under review, compared to (-) 10.2 per cent a year earlier. Meanwhile, China has posted a growth of 7.9 per cent in the April-June period of 2021.

India's GDP growth rebounds to 20.1 per cent in Q1 on low base

Indian business activity has stayed above the pre-pandemic level for a second straight week rising to 100.8 for the week ended August 22. The index was at 100.1 in the preceding week.

World Business Watch: Indian business activity at pre-pandemic levels for second week in a row

Indian Finance Minister Nirmala Sitharaman unveiled the 'National Monetisation Pipeline' on Monday, with the goal of monetizing assets worth $81 billion during the fiscal years 2022-25.

The plan outlines the government's four-year strategy for monetizing brownfield infrastructure assets ranging from roads and railroads to electricity transmission and production, as well as mining.

"The ownership of assets remains with the government. There will be a mandatory hand back. They (private sector partners) will have to give it back after a certain time," Sitharaman said.

"By bringing in private participation, we are going to monetize it (assets) better and with whatever resource that you obtained by monetisation, you are able to put in for further investment into infrastructure building," she added.

Asset monetisation will unlock resources and lead to value unlocking, she said.

Union Budget 2021-22 had identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing.

Towards this, the Budget provided for preparation of a 'National Monetisation Pipeline' of potential brownfield infrastructure assets.

NITI Aayog in consultation with infra line ministries has prepared the report on NMP.

The end objective of this initiative is to enable "infrastructure creation through monetisation" wherein the public and private sector collaborate, each excelling in their core areas of competence, so as to deliver socio-economic growth and quality of life to the country's citizens, she added.

(With inputs from agencies)

Indian Finance Minister Nirmala Sitharaman unveiled the 'National Monetisation Pipeline' on Monday, with the goal of monetizing assets worth $81 billion during the fiscal years 2022-25.

Indian Finance Minister Nirmala Sitharaman unveiled the 'National Monetisation Pipeline' on Monday, with the goal of monetizing assets worth $81 billion during the fiscal years 2022-25. The plan outlines the government's four-year strategy for monetizing brownfield infrastructure assets ranging from roads and railroads to electricity transmission and production, as well as mining. "The ownership of assets remains with the government. There will be a mandatory hand back. They (private sector partners) will have to give it back after a certain time," Sitharaman said. "By bringing in private participation, we are going to monetize it (assets) better and with whatever resource that you obtained by monetisation, you are able to put in for further investment into infrastructure building," she added. Asset monetisation will unlock resources and lead to value unlocking, she said. Union Budget 2021-22 had identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing. Towards this, the Budget provided for preparation of a 'National Monetisation Pipeline' of potential brownfield infrastructure assets. NITI Aayog in consultation with infra line ministries has prepared the report on NMP. The end objective of this initiative is to enable "infrastructure creation through monetisation" wherein the public and private sector collaborate, each excelling in their core areas of competence, so as to deliver socio-economic growth and quality of life to the country's citizens, she added. (With inputs from agencies)

National Monetisation Pipeline: India unveils $81 billion plan; ownership of assets will remain with govt

Indian economy is going through many ups and downs. Various rating agency's including Moody's have slashed growth projection for India. Moody's Vice President- Senior Credit Officer, Madhavi Bokil talks to WION on India's economic revival and major challenges to its growth this fiscal?

Economic impact of first wave severer than second wave in India: Madhavi Bokil

As per the numbers that appeared in&nbsp;government data released on Monday, India's wholesale price inflation increased to 12.94 per cent year-on-year in May, up from 10.49 per cent in April, owing primarily to a rise in energy prices.

Fuel prices increased 37.61 per cent year over year in May, according to data from the Ministry of Commerce and Industry. 
 
According to the government, the high rate of inflation in May was caused by a low base effect and increases in the prices of crude petroleum, mineral oils, and manufactured goods. 
 
The wholesale price index (WPI)-based inflation has risen for the fifth month in a row.WPI inflation reached double digits in April 2021, at 10.49 per cent.&nbsp;

"The annual rate of inflation, based on monthly WPI, was 12.94 per cent for the month of May 2021 (over May 2020) as compared to (-) 3.37 per cent in May 2020. The high rate of inflation in May 2021 is primarily due to the low base effect and rise in prices of crude petroleum, mineral oils viz. Petrol, diesel, naphtha, furnace oil etc. And manufactured products as compared to the corresponding month of the previous year," the Commerce and Industry Ministry said. 
 
(With inputs from agencies)

As per the numbers that appeared in government data released on Monday, India's wholesale price inflation increased to 12.94 per cent year-on-year in May, up from 10.

As per the numbers that appeared in government data released on Monday, India's wholesale price inflation increased to 12.94 per cent year-on-year in May, up from 10.49 per cent in April, owing primarily to a rise in energy prices. Fuel prices increased 37.61 per cent year over year in May, according to data from the Ministry of Commerce and Industry. According to the government, the high rate of inflation in May was caused by a low base effect and increases in the prices of crude petroleum, mineral oils, and manufactured goods. The wholesale price index (WPI)-based inflation has risen for the fifth month in a row.WPI inflation reached double digits in April 2021, at 10.49 per cent. "The annual rate of inflation, based on monthly WPI, was 12.94 per cent for the month of May 2021 (over May 2020) as compared to (-) 3.37 per cent in May 2020. The high rate of inflation in May 2021 is primarily due to the low base effect and rise in prices of crude petroleum, mineral oils viz. Petrol, diesel, naphtha, furnace oil etc. And manufactured products as compared to the corresponding month of the previous year," the Commerce and Industry Ministry said. (With inputs from agencies)

India's wholesale price inflation hits record high of 12.94% in May on costlier fuel

India's economic growth picked up in the January-March quarter from the previous three months, but economists have grown pessimistic about this quarter after a huge second wave of COVID-19 infections hit the country last month.

Gross domestic product grew 1.6% in January-March compared with the same period a year earlier, mainly driven by manufacturing sector growth, data from the statistics ministry showed on Monday.

That compared with revised growth of 0.5% in the previous three months and 1.0% according to a Reuters poll of economists.

India also revised its annual GDP estimates for the fiscal year, predicting a 7.3% contraction, less than its earlier estimate of -8.0%.

A slow vaccination drive and local restrictions after a massive second wave of infections and deaths across the country have hit economic activities like retail, transport and construction while putting millions out of work.

India has recorded 28 million COVID-19 infections, behind only the United States, and 329,100 deaths as of Monday, although the rise has begun to slow.

Economists said the economy, which was facing a slowdown even before the pandemic, may now see a collapse in consumer demand, which accounts for more than 55% of the economy, as household incomes and jobs have declined.

Garima Kapoor, economist at Institutional Equities, Elara Capital Mumbai, said the March GDP numbers reflected the impact of the unlocking of the economy before the second wave hit.

"The rebound in consumer spending would hence be more gradual than the first wave, with vaccination being the key driver."

The central bank, which has kept monetary policy loose while boosting liquidity to the economy, said last week the prospects will depend on how fast India can arrest infections.

Analysts warn that the slow rollout could pose medium-term risks to growth, especially if the country were to experience a third wave of COVID-19.

Unemployment soared to a near one-year high of 14.7% in the week ending May 23, according to the Centre for Monitoring Indian Economy, a Mumbai-based private think tank.

India's economic growth picked up in the January-March quarter from the previous three months, but economists have grown pessimistic about this quarter after a huge second wave of COVID-19 infections hit the country last month.

India's economic growth picked up in the January-March quarter from the previous three months, but economists have grown pessimistic about this quarter after a huge second wave of COVID-19 infections hit the country last month. Gross domestic product grew 1.6% in January-March compared with the same period a year earlier, mainly driven by manufacturing sector growth, data from the statistics ministry showed on Monday. That compared with revised growth of 0.5% in the previous three months and 1.0% according to a Reuters poll of economists. India also revised its annual GDP estimates for the fiscal year, predicting a 7.3% contraction, less than its earlier estimate of -8.0%. A slow vaccination drive and local restrictions after a massive second wave of infections and deaths across the country have hit economic activities like retail, transport and construction while putting millions out of work. India has recorded 28 million COVID-19 infections, behind only the United States, and 329,100 deaths as of Monday, although the rise has begun to slow. Economists said the economy, which was facing a slowdown even before the pandemic, may now see a collapse in consumer demand, which accounts for more than 55% of the economy, as household incomes and jobs have declined. Garima Kapoor, economist at Institutional Equities, Elara Capital Mumbai, said the March GDP numbers reflected the impact of the unlocking of the economy before the second wave hit. "The rebound in consumer spending would hence be more gradual than the first wave, with vaccination being the key driver." The central bank, which has kept monetary policy loose while boosting liquidity to the economy, said last week the prospects will depend on how fast India can arrest infections. Analysts warn that the slow rollout could pose medium-term risks to growth, especially if the country were to experience a third wave of COVID-19. Unemployment soared to a near one-year high of 14.7% in the week ending May 23, according to the Centre for Monitoring Indian Economy, a Mumbai-based private think tank.

India's economic growth picks up in Jan-March, before huge COVID-19 wave

India`s economic outlook has weakened again, albeit slightly, with worst-case scenario forecasts suggesting the toll from the coronavirus pandemic could be much deeper, stoking fears the job crisis may worsen over the coming year, a Reuters poll found. 
 
Renewed restrictions to curb the current coronavirus wave have stalled economic activity, leaving many millions out of work and pushing economists - who have broadly been bullish - to downgrade their views for the second time since early April. 
 
The May 20-27 poll showed the outlook for the current quarter was lowered to 21.6% annually, and to 9.8% on average for this fiscal year, down from 23.0% and 10.4% respectively a month ago. The economy was then forecast to grow 6.7% next fiscal year, compared to 6.5% predicted previously. 
 
While the consensus pointed to healthy growth figures later this year, all 29 economists, in response to an additional question, warned the outlook was either "weak and prone to further downgrades" or "fragile, with a limited downside". 
 
None expected a "strong recovery, followed by an upgrade". 
 
"Recovery in India was strong in the months before the second wave. This leads us to believe the recovery can rebound quickly after the number of new infections have come down. But vaccination implementation needs to pick up pace in order to have an effect this year," said Wouter van Eijkelenburg, an economist at Rabobank. 
 
"Therefore new surges of the virus hang above recovery like the sword of Damocles. Until a large share of the population is vaccinated there remains this downside risk of new waves and subsequent lockdowns hampering the recovery." 
 
Underscoring concerns that a slow vaccine rollout may make a bigger dent in the economy, the consensus showed in a worst-case scenario the economy would average just 6.8% growth this fiscal year after its deepest ever recession last year. 
 
"Let`s hope (the situation) doesn`t go there. If it does and we do have another wave ... after this one, maybe the government will learn some lessons - that it is better to lock down the economy sooner, rather than later," said Gareth Leather, senior Asia economist at Capital Economics. 
 
"The threat of further waves will hang over the economic outlook so long as India`s vaccination progress remains lacklustre." 
 
India`s unemployment rate soared to a near one-year high of 14.73% in the week ending May 23, according to the Center for Monitoring Indian Economy (CMIE), reflecting the impact of the economic slowdown. 
 
When asked if there was a risk that India`s unemployment situation could worsen over the coming year, more than 85%, or 25 of 29 respondents, said it was high, including four who said very high. The remaining four said the risk was low. 
 
"There is going to be a significant demand shock to the economy, some of that could be permanent demand destruction, thereby pushing more out of the jobs market and keeping the unemployment rate elevated over the coming year," said Prakash Sakpal, senior Asia economist at ING. 
 
The Reserve Bank of India has kept its monetary policy loose, including several liquidity measures, and was expected to stay on an easy course for this fiscal year. 
 
While calls have increased for more fiscal stimulus to speed up the economic healing, the government has limited space to respond to challenges posed by the health crisis. 
 
"If the Indian government increases spending ... it will probably prevent a loss in economic output in the short term, but this simultaneously puts more pressure on the sustainability of debt in the longer term, essentially mortgaging their future," said Rabobank`s Eijkelenburg. 
 
"India`s policymakers find themselves between a rock and a hard place when it comes to decisions on additional fiscal stimulus."

India`s economic outlook has weakened again, albeit slightly, with worst-case scenario forecasts suggesting the toll from the coronavirus pandemic could be much deeper, stoking fears the job crisis may worsen over the coming year, a Reuters poll found.

India`s economic outlook has weakened again, albeit slightly, with worst-case scenario forecasts suggesting the toll from the coronavirus pandemic could be much deeper, stoking fears the job crisis may worsen over the coming year, a Reuters poll found. Renewed restrictions to curb the current coronavirus wave have stalled economic activity, leaving many millions out of work and pushing economists - who have broadly been bullish - to downgrade their views for the second time since early April. The May 20-27 poll showed the outlook for the current quarter was lowered to 21.6% annually, and to 9.8% on average for this fiscal year, down from 23.0% and 10.4% respectively a month ago. The economy was then forecast to grow 6.7% next fiscal year, compared to 6.5% predicted previously. While the consensus pointed to healthy growth figures later this year, all 29 economists, in response to an additional question, warned the outlook was either "weak and prone to further downgrades" or "fragile, with a limited downside". None expected a "strong recovery, followed by an upgrade". "Recovery in India was strong in the months before the second wave. This leads us to believe the recovery can rebound quickly after the number of new infections have come down. But vaccination implementation needs to pick up pace in order to have an effect this year," said Wouter van Eijkelenburg, an economist at Rabobank. "Therefore new surges of the virus hang above recovery like the sword of Damocles. Until a large share of the population is vaccinated there remains this downside risk of new waves and subsequent lockdowns hampering the recovery." Underscoring concerns that a slow vaccine rollout may make a bigger dent in the economy, the consensus showed in a worst-case scenario the economy would average just 6.8% growth this fiscal year after its deepest ever recession last year. "Let`s hope (the situation) doesn`t go there. If it does and we do have another wave ... after this one, maybe the government will learn some lessons - that it is better to lock down the economy sooner, rather than later," said Gareth Leather, senior Asia economist at Capital Economics. "The threat of further waves will hang over the economic outlook so long as India`s vaccination progress remains lacklustre." India`s unemployment rate soared to a near one-year high of 14.73% in the week ending May 23, according to the Center for Monitoring Indian Economy (CMIE), reflecting the impact of the economic slowdown. When asked if there was a risk that India`s unemployment situation could worsen over the coming year, more than 85%, or 25 of 29 respondents, said it was high, including four who said very high. The remaining four said the risk was low. "There is going to be a significant demand shock to the economy, some of that could be permanent demand destruction, thereby pushing more out of the jobs market and keeping the unemployment rate elevated over the coming year," said Prakash Sakpal, senior Asia economist at ING. The Reserve Bank of India has kept its monetary policy loose, including several liquidity measures, and was expected to stay on an easy course for this fiscal year. While calls have increased for more fiscal stimulus to speed up the economic healing, the government has limited space to respond to challenges posed by the health crisis. "If the Indian government increases spending ... it will probably prevent a loss in economic output in the short term, but this simultaneously puts more pressure on the sustainability of debt in the longer term, essentially mortgaging their future," said Rabobank`s Eijkelenburg. "India`s policymakers find themselves between a rock and a hard place when it comes to decisions on additional fiscal stimulus."

COVID-19 toll on Indian economy deepens, jobs crisis to worsen

India's economy has not moderated to the extent it did during the first wave but uncertainties can act as a deterrent in the short term, the Reserve Bank of India said on Thursday. 
 
In its annual report, the central bank said the country`s growth prospects now essentially depend on how fast India can arrest the second wave of COVID-19 infections. 
 
"The recovery of the economy from the COVID-19 will critically depend on the robust revival of private demand that may be led by the consumption in the short-run but will require acceleration of investment to sustain the recovery," the central bank said in its annual report. 
 
It also added that reform measures in various areas were likely to improve India`s growth potential on a sustainable basis.

India's economy has not moderated to the extent it did during the first wave but uncertainties can act as a deterrent in the short term, the Reserve Bank of India said on Thursday.

India's economy has not moderated to the extent it did during the first wave but uncertainties can act as a deterrent in the short term, the Reserve Bank of India said on Thursday. In its annual report, the central bank said the country`s growth prospects now essentially depend on how fast India can arrest the second wave of COVID-19 infections. "The recovery of the economy from the COVID-19 will critically depend on the robust revival of private demand that may be led by the consumption in the short-run but will require acceleration of investment to sustain the recovery," the central bank said in its annual report. It also added that reform measures in various areas were likely to improve India`s growth potential on a sustainable basis.

Indian economy not as hard hit as first wave but uncertainties remain, says RBI

India is battling second wave of Coronavirus. The ailing economy has recently witnessed green shoots but the state govt's are again gradually heading towards the imposition of lockdown to restrict the spread of virus. The Chief Minister of Delhi yesterday imposed a week long lockdown with some guidelines to manufacturing sectors. Is the manufacturing sector is ready to tackle another lockdown? We have today the President of ACMA, Mr. Deepak Jain who says 'The manufacturing sector is hopeful of managing lockdowns'. Watch the full conversation

Indian economy and second wave of Covid-19

In the Covid-ravaged 2020-21 fiscal (April 2020 to March 2021), the economy is projected to have contracted by up to 8 per cent.

Brokerages downgrade India's GDP growth projections for FY'22

India, which is projected to grow at an impressive rate of 12.5 per cent this year, needs to grow at a much faster pace to make up for the unprecedented contraction of eight per cent that it clocked during the COVID-19 pandemic in 2020, according to a senior IMF official.

The International Monetary Fund Deputy Chief Economist, Petya Koeva Brooks, in an interview to PTI on Friday also made a strong case for an additional economic stimulus to address the impact of the pandemic on the country's economy.

"When it comes to India there was a major collapse of output last fiscal year and the number as you mentioned is eight.

"So, we are very glad to see the strong rebound this year with projected growth of 12.5 for fiscal year 21-22 and we are seeing also high-frequency indicators including PMI (Purchasing Managers' Index), and trade and more mobility indicators which give us a sense that there is a continued recovery in the first quarter of this year," she said.

That said, there are some recent emergencies of the new variants in the localised lockdowns that are seen as one of the threats to this recovery, Brooks noted.

On the recovery itself, when it comes to the level in terms of the level of output, we are expecting that level to return to the pre-crisis one from 2019 to this fiscal year. That is what we have in our projections.

"However, if you look at a concept of scarring, which just compares what the level of output would have been hadn't there been a crisis in 2024, which is the measure which we are using. Then at and compare where our current growth trajectory is for India that gap is much larger, Brooks said.

The gap, she said, which is eight per cent of GDP is significantly larger than what it is for the world as a whole.

"For the world as a whole it's about three (per cent), which is another way of saying that even though in the near term we have this real rebound, there's still scope in the coming years to see higher growth which would reduce and hopefully, eliminate that scarring, which we are currently expecting, the top IMF official said in response to a question.

"If we were to just think about the level of output that it was prior to being a pandemic then that catch happens this year, which is not surprising also given the very high level of the underlying high level of growth which India has. But again, if we compare it to the path of what it would have been without the pandemic then we are getting too many larger gaps there, she said.

Noting that the Indian government took several steps to address the COVID-19 crisis, Brooks said, We have seen policy responses, which have been coordinated and in several areas. We have seen that the fiscal support, the monetary easing as well as the liquidity and regulatory measures that were taken."

What makes sense is to maintain the focus on having that coordinated policy response because this is what's going to prevent long-term damage to the economy. Providing that support to small and medium-sized firms as well as vulnerable houses would be particularly important, she said.

Brooks said the IMF very much welcomes the measures that were announced by India during its budget. It is particularly supportive of maintaining the accommodative fiscal stance and also emphasising expenditures on health and infrastructure.

We estimate that the positive impact of the measures for this fiscal year is going to be of the order of point six percentage points on growth, she said, adding that several measures announced in the budget were in line of the IMF's advice.

Prominent among them are that there would not be a withdrawal of fiscal stimulus at the general government level and also that state governments would be given the temporary flexibility to go over their budget ceilings. And last, but not least, the fact that some of the other budget items on food subsidies were actually brought into the budget. Overall, the IMF is very supportive of this focus on growth.

At the same time, Brooks made a strong case for an additional economic stimulus.

We do think that additional fiscal stimulus would be helpful. Focusing that stimulus again on the most vulnerable is something that makes sense to us. We note that some of the income support schemes were not extended beyond November 2020 and such, she said.

Taking measures in that area would be particularly helpful as well as making sure that there's priority spending on education, the economist noted.

Last, but not least, also ensuring that there is a very concrete medium-term fiscal framework is an area where we can see some room for more work in that area, she said.

Now when it comes to monetary policy, we think that given the underlying slack in the economy, maintaining the accommodative monetary policy stance makes sense. This is what we understand is being planned at the moment.

This has been our long-standing recommendation that we see scope for additional policy measures to address the weaknesses in the financial sector, in the banking part in the non-bank part of the financial sector. We think that this is going to be particularly important as we come out of the crisis to have that efficient credit intermediation, which is going to allow the economy to grow, the IMF official said.

Responding to a question on the stimulus package, Brooks underscored the need to essentially have targeted support for households and for the firms that have been most affected is the most efficient and sensible way to provide that support.

India, which is projected to grow at an impressive rate of 12.5 per cent this year, needs to grow at a much faster pace to make up for the unprecedented contraction of eight per cent that it clocked during the COVID-19 pandemic in 2020, according to a senior IMF official.

India, which is projected to grow at an impressive rate of 12.5 per cent this year, needs to grow at a much faster pace to make up for the unprecedented contraction of eight per cent that it clocked during the COVID-19 pandemic in 2020, according to a senior IMF official. The International Monetary Fund Deputy Chief Economist, Petya Koeva Brooks, in an interview to PTI on Friday also made a strong case for an additional economic stimulus to address the impact of the pandemic on the country's economy. "When it comes to India there was a major collapse of output last fiscal year and the number as you mentioned is eight. "So, we are very glad to see the strong rebound this year with projected growth of 12.5 for fiscal year 21-22 and we are seeing also high-frequency indicators including PMI (Purchasing Managers' Index), and trade and more mobility indicators which give us a sense that there is a continued recovery in the first quarter of this year," she said. That said, there are some recent emergencies of the new variants in the localised lockdowns that are seen as one of the threats to this recovery, Brooks noted. On the recovery itself, when it comes to the level in terms of the level of output, we are expecting that level to return to the pre-crisis one from 2019 to this fiscal year. That is what we have in our projections. "However, if you look at a concept of scarring, which just compares what the level of output would have been hadn't there been a crisis in 2024, which is the measure which we are using. Then at and compare where our current growth trajectory is for India that gap is much larger, Brooks said. The gap, she said, which is eight per cent of GDP is significantly larger than what it is for the world as a whole. "For the world as a whole it's about three (per cent), which is another way of saying that even though in the near term we have this real rebound, there's still scope in the coming years to see higher growth which would reduce and hopefully, eliminate that scarring, which we are currently expecting, the top IMF official said in response to a question. "If we were to just think about the level of output that it was prior to being a pandemic then that catch happens this year, which is not surprising also given the very high level of the underlying high level of growth which India has. But again, if we compare it to the path of what it would have been without the pandemic then we are getting too many larger gaps there, she said. Noting that the Indian government took several steps to address the COVID-19 crisis, Brooks said, We have seen policy responses, which have been coordinated and in several areas. We have seen that the fiscal support, the monetary easing as well as the liquidity and regulatory measures that were taken." What makes sense is to maintain the focus on having that coordinated policy response because this is what's going to prevent long-term damage to the economy. Providing that support to small and medium-sized firms as well as vulnerable houses would be particularly important, she said. Brooks said the IMF very much welcomes the measures that were announced by India during its budget. It is particularly supportive of maintaining the accommodative fiscal stance and also emphasising expenditures on health and infrastructure. We estimate that the positive impact of the measures for this fiscal year is going to be of the order of point six percentage points on growth, she said, adding that several measures announced in the budget were in line of the IMF's advice. Prominent among them are that there would not be a withdrawal of fiscal stimulus at the general government level and also that state governments would be given the temporary flexibility to go over their budget ceilings. And last, but not least, the fact that some of the other budget items on food subsidies were actually brought into the budget. Overall, the IMF is very supportive of this focus on growth. At the same time, Brooks made a strong case for an additional economic stimulus. We do think that additional fiscal stimulus would be helpful. Focusing that stimulus again on the most vulnerable is something that makes sense to us. We note that some of the income support schemes were not extended beyond November 2020 and such, she said. Taking measures in that area would be particularly helpful as well as making sure that there's priority spending on education, the economist noted. Last, but not least, also ensuring that there is a very concrete medium-term fiscal framework is an area where we can see some room for more work in that area, she said. Now when it comes to monetary policy, we think that given the underlying slack in the economy, maintaining the accommodative monetary policy stance makes sense. This is what we understand is being planned at the moment. This has been our long-standing recommendation that we see scope for additional policy measures to address the weaknesses in the financial sector, in the banking part in the non-bank part of the financial sector. We think that this is going to be particularly important as we come out of the crisis to have that efficient credit intermediation, which is going to allow the economy to grow, the IMF official said. Responding to a question on the stimulus package, Brooks underscored the need to essentially have targeted support for households and for the firms that have been most affected is the most efficient and sensible way to provide that support.

India needs to grow faster to make up for contraction during Covid-19: IMF

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

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

Stating that "growth is of paramount importance now", India's Reserve Bank on Wednesday said it will do whatever it takes to sustain the fledgling recovery by ensuring ample and assured liquidity and cheaper funds to oil the wheels of the economy.

Announcing the first monetary policy of fiscal 2022, the central bank left the key policy rate unchanged at 4 per cent for the fifth time in a row, after the rash of rate cuts earlier last fiscal.

It also assured of an indefinitely long period of accommodative policy stance which was topped by a historic move to commit its own balance sheet to the market with a new liquidity tool called 'the secondary market government securities acquisition programme' or G-Sap, under which it will buy government bonds worth Rs 1 lakh crore this quarter.

Addressing the media online, RBI Governor Shaktikanta Das said "as of now growth is of paramount importance...and we'll do whatever it takes to help sustain the recovery."

But he was quick to add that "inflation targeting is also important."

 
"More importantly, the government reiterating the plus-minus 2 per cent of 4 per cent inflation targeting gives us enough policy space to support growth as there are more downside risks to growth on the horizon now than in recent past which make growth...of paramount importance," he added. 
The central bank chose to retain its last forecast of 10.5 per cent GDP growth this fiscal, saying it is "too early to revise its own forecast done two months ago as we have just entered the new fiscal year."

Asked why the thrust was on growth despite pencilling in an upward inflation trajectory (5.2 per cent for the first half and 4.4 per cent for the second), and offering an indefinite period of accommodative policy stance, Das said, "We'll continue to be accommodative till growth becomes sustainable and we will do whatever it takes to achieve that."

Das continued to explain that "inflation is already in a well-entrenched and well-anchored framework now and so is inflation expectation, that's also well-anchored. This is very clear from the fact that the government notification has reiterated the plus-minus 2 per cent of 4 per cent inflation targeting."

"This framework gives RBI enough leeway gives enough policy tools to manage any extraordinary situations like the current pandemic.

"For the time being and at the current juncture, growth is of paramount importance, while of course keeping in mind inflation targeting is also important. After all, the the primary goal of the monetary policy is to maintain a certain level of inflation," he said.

However, the governor was quick to admit that the inflation outlook is uncertain.

On when the RBI will begin to exit the low reverse repo regime, Das said "that's something only time can decide. All I can tell you now is that we are accommodative and will remain so till we feel it is needed. So, we will have to wait when we will exit reverse repo."

His deputy Michael D Patra chipped in saying whenever the reverse repo is in operation, the policy is accommodative, parrying a direct response to a query on the impact of such high liquidity infusion on inflation.

On whether the RBI is anticipating some shocks to the system, Patra said, "We are mindful of the liquidity situation. And we will be mindful of taking a balanced action."

"To begin with, for the first in history, RBI is committing its balance sheet to the monetary policy under which we are committing to the market that we will give you Rs 1 trillion each quarter (up to Rs 3 trillion this fiscal), whether you want it or not, and irrespective of the market movement we will give you that amount of liquidity through the G-Sap," he said.

He went on to explain that when the policy rates are left unchanged, other tools are required to run the policy.

Patra said the bond buying is "an upfront assurance and is similar to what other major central banks are doing in buying the best and most secure assets, that is G-secs -- the benchmark for the entire money market."

"We are not leaving anything to the market to guess on the quantum, the timing or the demand or anything else. And this is a commitment to fund it from the RBI balance sheet itself," Patra said.

On maintaining the GDP forecast at the previous level of 10.5 per cent (26.2 per cent in Q1, 8.3 per cent in Q2, 5.4 per cent in Q3 and 6.2 per cent in Q4), Das said, "It is too early to give a guidance especially now the pandemic situation has become more uncertain due to the recent surge in infections. Also, we are at the beginning of a the new fiscal year."

"But at the same time I would like to like to say that the current situation is unlikely to impact the economy so much as it did this time last year because lockdowns are very selective this time. Also, many establishments, manufacturing units and businesses are fully operational and are better prepared to face the challenges now. And so are the general public.

"Therefore, we've reiterated our 10.5 percent forecast as the situation prevails today; and I don't think there is any significant upside risks to this as of now. Vaccine is an additional factor on the table which was not there last year. Overall we are better prepared.

"So whatever guidance we've given so far looks reasonable. Going forward we will be watchful, Das noted.

Stating that "growth is of paramount importance now", India's Reserve Bank on Wednesday said it will do whatever it takes to sustain the fledgling recovery by ensuring ample and assured liquidity and cheaper funds to oil the wheels of the economy.

Stating that "growth is of paramount importance now", India's Reserve Bank on Wednesday said it will do whatever it takes to sustain the fledgling recovery by ensuring ample and assured liquidity and cheaper funds to oil the wheels of the economy. Announcing the first monetary policy of fiscal 2022, the central bank left the key policy rate unchanged at 4 per cent for the fifth time in a row, after the rash of rate cuts earlier last fiscal. It also assured of an indefinitely long period of accommodative policy stance which was topped by a historic move to commit its own balance sheet to the market with a new liquidity tool called 'the secondary market government securities acquisition programme' or G-Sap, under which it will buy government bonds worth Rs 1 lakh crore this quarter. Addressing the media online, RBI Governor Shaktikanta Das said "as of now growth is of paramount importance...and we'll do whatever it takes to help sustain the recovery." But he was quick to add that "inflation targeting is also important." "More importantly, the government reiterating the plus-minus 2 per cent of 4 per cent inflation targeting gives us enough policy space to support growth as there are more downside risks to growth on the horizon now than in recent past which make growth...of paramount importance," he added. The central bank chose to retain its last forecast of 10.5 per cent GDP growth this fiscal, saying it is "too early to revise its own forecast done two months ago as we have just entered the new fiscal year." Asked why the thrust was on growth despite pencilling in an upward inflation trajectory (5.2 per cent for the first half and 4.4 per cent for the second), and offering an indefinite period of accommodative policy stance, Das said, "We'll continue to be accommodative till growth becomes sustainable and we will do whatever it takes to achieve that." Das continued to explain that "inflation is already in a well-entrenched and well-anchored framework now and so is inflation expectation, that's also well-anchored. This is very clear from the fact that the government notification has reiterated the plus-minus 2 per cent of 4 per cent inflation targeting." "This framework gives RBI enough leeway gives enough policy tools to manage any extraordinary situations like the current pandemic. "For the time being and at the current juncture, growth is of paramount importance, while of course keeping in mind inflation targeting is also important. After all, the the primary goal of the monetary policy is to maintain a certain level of inflation," he said. However, the governor was quick to admit that the inflation outlook is uncertain. On when the RBI will begin to exit the low reverse repo regime, Das said "that's something only time can decide. All I can tell you now is that we are accommodative and will remain so till we feel it is needed. So, we will have to wait when we will exit reverse repo." His deputy Michael D Patra chipped in saying whenever the reverse repo is in operation, the policy is accommodative, parrying a direct response to a query on the impact of such high liquidity infusion on inflation. On whether the RBI is anticipating some shocks to the system, Patra said, "We are mindful of the liquidity situation. And we will be mindful of taking a balanced action." "To begin with, for the first in history, RBI is committing its balance sheet to the monetary policy under which we are committing to the market that we will give you Rs 1 trillion each quarter (up to Rs 3 trillion this fiscal), whether you want it or not, and irrespective of the market movement we will give you that amount of liquidity through the G-Sap," he said. He went on to explain that when the policy rates are left unchanged, other tools are required to run the policy. Patra said the bond buying is "an upfront assurance and is similar to what other major central banks are doing in buying the best and most secure assets, that is G-secs -- the benchmark for the entire money market." "We are not leaving anything to the market to guess on the quantum, the timing or the demand or anything else. And this is a commitment to fund it from the RBI balance sheet itself," Patra said. On maintaining the GDP forecast at the previous level of 10.5 per cent (26.2 per cent in Q1, 8.3 per cent in Q2, 5.4 per cent in Q3 and 6.2 per cent in Q4), Das said, "It is too early to give a guidance especially now the pandemic situation has become more uncertain due to the recent surge in infections. Also, we are at the beginning of a the new fiscal year." "But at the same time I would like to like to say that the current situation is unlikely to impact the economy so much as it did this time last year because lockdowns are very selective this time. Also, many establishments, manufacturing units and businesses are fully operational and are better prepared to face the challenges now. And so are the general public. "Therefore, we've reiterated our 10.5 percent forecast as the situation prevails today; and I don't think there is any significant upside risks to this as of now. Vaccine is an additional factor on the table which was not there last year. Overall we are better prepared. "So whatever guidance we've given so far looks reasonable. Going forward we will be watchful, Das noted.

Supporting growth paramount for RBI now: Governor Shaktikanta Das

India can again reclaim the position of the fastest growing economy in the world in 2021-22, a report by The Organisation for Economic Co-operation and Development (OECD) on Tuesday said.&nbsp;

The report also projected the Indian economy to grow at 12.6 per cent, the highest among the G20 countries in the financial year 2021-22.&nbsp;

It said if India achieves the projected growth, the country will "reclaim its status as the fastest-growing major economy from China."

Watch |&nbsp;

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/world-business-watch-india-could-be-back-as-fastest-growing-economy-again-369296/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The projections have come after India recorded a 0.4 per cent rise in GDP in the last quarter, ending two back-to-back negative growth rates.&nbsp;

The forecast for the global economy rose to 5.6 per cent in 2021 from the previous estimate of 4.2 per cent, the report said.

It said that in recent months global economic prospects have improved considerably due to a gradual supply of effective vaccines and countries have announced more fiscal support.&nbsp;

"Significant fiscal and monetary support continues to underpin activity. Additional discretionary fiscal measures announced in several countries during the past three months will add to the overall support this year, including in the US, Japan, Germany, Canada, and India," the report said. 
&nbsp;

India can again reclaim the position of the fastest growing economy in the world in 2021-22, a report by The Organisation for Economic Co-operation and Development (OECD) on Tuesday said.

India can again reclaim the position of the fastest growing economy in the world in 2021-22, a report by The Organisation for Economic Co-operation and Development (OECD) on Tuesday said. The report also projected the Indian economy to grow at 12.6 per cent, the highest among the G20 countries in the financial year 2021-22. It said if India achieves the projected growth, the country will "reclaim its status as the fastest-growing major economy from China." Watch | The projections have come after India recorded a 0.4 per cent rise in GDP in the last quarter, ending two back-to-back negative growth rates. The forecast for the global economy rose to 5.6 per cent in 2021 from the previous estimate of 4.2 per cent, the report said. It said that in recent months global economic prospects have improved considerably due to a gradual supply of effective vaccines and countries have announced more fiscal support. "Significant fiscal and monetary support continues to underpin activity. Additional discretionary fiscal measures announced in several countries during the past three months will add to the overall support this year, including in the US, Japan, Germany, Canada, and India," the report said.

With growth rate of 12.6%, India could become world's fastest-growing economy: Report

Taiwan's government on Thursday said it had approved a $140 million investment in India by Pegatron Corp, a major Taiwanese Apple Inc contract manufacturer.

Taiwan approves $140 million Pegatron investment in India

Having fired up hopes for populist measures with talk of delivering a "budget like never before", Finance Minister Nirmala&nbsp;Sitharaman&nbsp;will need to find credible sources for additional revenue for boosting the economy.

The government has raised just over 138 billion rupees out of the 2.1 trillion rupees ($28.72 billion) divestment target for the current year. It expects to end FY21 with not more than 300 billion rupees, according to government officials.

<a href="https://www.wionews.com/business-economy/union-budget-2021-government-mulls-covid-cess-to-boost-revenue-356420">Also Read:&nbsp;Union Budget 2021: Government mulls COVID cess to boost revenue</a>

"It will be hard for the finance minister to find resources. But she will get some help from the economic revival that will likely increase some tax revenue," said N.R. Bhanumurthy, economist and vice-chancellor at Bengaluru-based B.R Ambedkar School of Economics.

Last month,&nbsp;Sitharaman&nbsp;held the 11th pre-budget consultations with experts in the field of infrastructure, energy and climate change, in view of the forthcoming Union Budget 2021-22.

It&nbsp;could raise over 1 trillion rupees from privatisation of Air India, Bharat Petroleum Corp Ltd, Container Corp. of India and Shipping Corp. of India in the first six months of the fiscal year beginning in April.

Though, finding investors for the national carrier, Air India could be challenging in these restricted travel, COVID-19 times.

"There might be overtures to compensate for this year's revenue shortfall by an increase in taxation for high net worth individuals as well as sin taxes," said Radhika Rao, an economist at DBS, referencing taxes on items such as tobacco and alcohol.

<a href="https://www.wionews.com/business-economy/union-budget-2021-goes-paperless-hard-copies-not-to-be-printed-for-first-time-in-history-356417">Also Read:&nbsp;Union Budget 2021 goes paperless</a>

Long-term budget

Sitharaman&nbsp;in an interview said she plans to lift spending, otherwise, it would completely undermine a government relief programme brought in last year to sustain poor families and small businesses.

Addressing a Confederation of Indian Industry conference last month,&nbsp;Sitharaman&nbsp;also excited expectations for a big-bang budget filled with sops by saying India was set to see a "budget like never before".

The government would like to use the budget as the path to launch three to four years of high growth, said the third official, stressing that the increase in spending would not be taken to unsustainable levels.

"So, all the funds announced would not be for this year. For this year we could have growth in expenditure for sure, but the funds announced in the budget would be for years ahead."

The government's fiscal deficit for the year ending March is expected to be over 7 per cent, and more than double the budgeted estimate.

India needs annual economic growth of over 8 per cent&nbsp;to create enough jobs for the millions of young people joining the labour force each month.

According to the Central Statistics Office, India's economy is expected to contract 7.7 per cent in the current financial year ending in March.

"Hope hinges on the government to increase its spending to revive the private sector sentiment, overall demand and largely private investment," said Arun Singh, global chief economist at Dun and Bradstreet.

&nbsp;

Having fired up hopes for populist measures with talk of delivering a "budget like never before", Finance Minister Nirmala Sitharaman will need to find credible sources for additional revenue for boosting the economy.

Having fired up hopes for populist measures with talk of delivering a "budget like never before", Finance Minister Nirmala Sitharaman will need to find credible sources for additional revenue for boosting the economy. The government has raised just over 138 billion rupees out of the 2.1 trillion rupees ($28.72 billion) divestment target for the current year. It expects to end FY21 with not more than 300 billion rupees, according to government officials. Also Read: Union Budget 2021: Government mulls COVID cess to boost revenue "It will be hard for the finance minister to find resources. But she will get some help from the economic revival that will likely increase some tax revenue," said N.R. Bhanumurthy, economist and vice-chancellor at Bengaluru-based B.R Ambedkar School of Economics. Last month, Sitharaman held the 11th pre-budget consultations with experts in the field of infrastructure, energy and climate change, in view of the forthcoming Union Budget 2021-22. It could raise over 1 trillion rupees from privatisation of Air India, Bharat Petroleum Corp Ltd, Container Corp. of India and Shipping Corp. of India in the first six months of the fiscal year beginning in April. Though, finding investors for the national carrier, Air India could be challenging in these restricted travel, COVID-19 times. "There might be overtures to compensate for this year's revenue shortfall by an increase in taxation for high net worth individuals as well as sin taxes," said Radhika Rao, an economist at DBS, referencing taxes on items such as tobacco and alcohol. Also Read: Union Budget 2021 goes paperless Long-term budget Sitharaman in an interview said she plans to lift spending, otherwise, it would completely undermine a government relief programme brought in last year to sustain poor families and small businesses. Addressing a Confederation of Indian Industry conference last month, Sitharaman also excited expectations for a big-bang budget filled with sops by saying India was set to see a "budget like never before". The government would like to use the budget as the path to launch three to four years of high growth, said the third official, stressing that the increase in spending would not be taken to unsustainable levels. "So, all the funds announced would not be for this year. For this year we could have growth in expenditure for sure, but the funds announced in the budget would be for years ahead." The government's fiscal deficit for the year ending March is expected to be over 7 per cent, and more than double the budgeted estimate. India needs annual economic growth of over 8 per cent to create enough jobs for the millions of young people joining the labour force each month. According to the Central Statistics Office, India's economy is expected to contract 7.7 per cent in the current financial year ending in March. "Hope hinges on the government to increase its spending to revive the private sector sentiment, overall demand and largely private investment," said Arun Singh, global chief economist at Dun and Bradstreet.

Union Budget 2021: Government needs credible sources for additional revenue to boost economy

What awaits the Global economy in 2021? How are countries looking to rebuild themselves? Will companies move out of China? WION's Palki Sharma has the details.

Gravitas: 2021 and Economy

The World Economic Forum's online Davos Agenda Summit began on Sunday night with the premier of a concert filmed during the coronavirus pandemic in different parts of the world and the event will see top global leaders, including Prime Minister Narendra Modi and Chinese President Xi Jinping, speak on the state of the world over the next five days.

After a welcome address by WEF Founder and Executive Chairman Klaus Shwab, Swiss President Parmelin delivered a special address, followed by annual Crystal Awards and the premier of 'See Me: A Global Concert'.

The concert was presented as a shared expression of trust, connection and hope and it features orchestras and choirs in Beijing, Drakensberg, Florence, Kabul, Philadelphia, Vienna and Sao Paulo, with the cellist Yo-Yo Ma and music director Marin Alsop.

The concert was filmed on location despite the COVID-19 challenges.

In what could be the first major global summit of the year, the event will see more than 1,000 global leaders, including heads of state and government, CEOs and chairmen of big companies, heads of multilateral organisations as also members of academia and civil society, discuss economic, environmental, social and technological challenges following the COVID-19 pandemic.

The WEF said there would be 15 special addresses from G20 heads of state and government and international organisations during the summit that will continue till January 29.

Prime Minister Narendra Modi will deliver his address on Thursday.

Agriculture Minister Narendra Singh Tomar, Health Minister Harsh Vardhan and Petroleum and Steel Minister Dharmendra Pradhan, as also business leaders such as Anand Mahindra, Salil Parekh and Shobana Kamineni would be among other speakers from India.

While the WEF will host its physical annual meeting in May in Singapore, as against the regular venue of the Swiss ski resort town of Davos, the Geneva-based organisation is hosting this online event, named 'Davos Agenda' around the same time it generally hosts its yearly congregation of the rich and powerful of the world.

The event has been billed as a platform that will see top world leaders deliver special addresses and engage in dialogue with business leaders at the start of a "crucial year to rebuild trust".

Chinese President Xi Jinping will deliver a special address on Monday, while the day will also see several sessions including on the COVID-19 crisis, restoring economic growth and stakeholder capitalism.

United Nations Secretary-General Antonio Guterres will also address a session.

On Tuesday, the speakers would include South Africa President Cyril Ramaphosa, European Commission President Ursula von der Leyen, German Chancellor Angela Merkel, French President Emmanuel Macron, as also IMF chief Kristalina Georgieva.

Republic of Korea President Moon Jae-in, Italy Prime Minister Giuseppe Conte and Israeli Prime Minister Benjamin Netanyahu are among the listed speakers for Wednesday.

On Thursday, in addition to Modi, Jordan King Abdullah II ibn Al Hussein and Argentine President Alberto Fernandez will also deliver their special addresses.

Singapore's Prime Minister Lee Hsien Loong and Japan's Prime Minister Yoshihide Suga will speak on Friday, the last day of the summit.

On Monday, Schwab will also release his latest book, titled 'Stakeholder Capitalism: A Global Economy that Works for Progress, People and Planet.

' It explores how societies can build the future post-COVID and builds on the WEF's 50-year-old advocacy of the stakeholder approach.

Other major speakers would include Christine Lagarde, Bill Gates, Punit Renjen of Deloitte, Brian T Moynihan of Bank of America, Al Gore, Ishaan Tharoor, Mark Carney, Angel Gurria of OECD, Ajay Banga, K T Rama Rao, Masayoshi Son of Softbank and Tedros Adhanom Ghebreyesus of the WHO.

The list of registered participants also include Union ministers Nitin Gadkari, Smriti Irani and Piyush Goyal, along with top business leaders such as Mukesh Ambani, Gautam Adani, Ravi Ruia, Rishad Premji, Pawan Munjal, Rajan Mittal, Sunil Mittal, Ajay Khanna, Ajit Gulabchand, Hari S Bhartia and Sanjiv Bajaj.

Former RBI Governor Raghuram Rajan, Tata Steel CEO T Narendran and Walmart CEO Doug McMillon are also among registered participants.

The WEF's Davos 2020 summit was the last major global event that took place before almost the entire world got locked down due to the COVID-19 pandemic.

The 'Davos Agenda' will also mark the launch of WEF's "Great Reset Initiative'' and begin the preparation of the special Annual Meeting in the spring, said the Geneva-based entity, which describes itself as an international organisation for public-private cooperation.

Industry leaders and public figures will discuss how to advance and accelerate public-private collaboration on critical issues such as COVID-19 vaccination, job creation and climate change, among others, according to the WEF.

While the WEF annual meeting for 2021 will be held during May 13-16 in Singapore, the high-profile summit will return to Davos in 2022.

The conclusions from the Davos Agenda week will feed into task forces working on global issues for the upcoming Special Annual Meeting in Singapore, the WEF said.

The World Economic Forum's online Davos Agenda Summit began on Sunday night with the premier of a concert filmed during the coronavirus pandemic in different parts of the world and the event will see top global leaders, including Prime Minister Narendra Modi and Chinese President Xi Jinping, speak on the state of the world over the next five days.

The World Economic Forum's online Davos Agenda Summit began on Sunday night with the premier of a concert filmed during the coronavirus pandemic in different parts of the world and the event will see top global leaders, including Prime Minister Narendra Modi and Chinese President Xi Jinping, speak on the state of the world over the next five days. After a welcome address by WEF Founder and Executive Chairman Klaus Shwab, Swiss President Parmelin delivered a special address, followed by annual Crystal Awards and the premier of 'See Me: A Global Concert'. The concert was presented as a shared expression of trust, connection and hope and it features orchestras and choirs in Beijing, Drakensberg, Florence, Kabul, Philadelphia, Vienna and Sao Paulo, with the cellist Yo-Yo Ma and music director Marin Alsop. The concert was filmed on location despite the COVID-19 challenges. In what could be the first major global summit of the year, the event will see more than 1,000 global leaders, including heads of state and government, CEOs and chairmen of big companies, heads of multilateral organisations as also members of academia and civil society, discuss economic, environmental, social and technological challenges following the COVID-19 pandemic. The WEF said there would be 15 special addresses from G20 heads of state and government and international organisations during the summit that will continue till January 29. Prime Minister Narendra Modi will deliver his address on Thursday. Agriculture Minister Narendra Singh Tomar, Health Minister Harsh Vardhan and Petroleum and Steel Minister Dharmendra Pradhan, as also business leaders such as Anand Mahindra, Salil Parekh and Shobana Kamineni would be among other speakers from India. While the WEF will host its physical annual meeting in May in Singapore, as against the regular venue of the Swiss ski resort town of Davos, the Geneva-based organisation is hosting this online event, named 'Davos Agenda' around the same time it generally hosts its yearly congregation of the rich and powerful of the world. The event has been billed as a platform that will see top world leaders deliver special addresses and engage in dialogue with business leaders at the start of a "crucial year to rebuild trust". Chinese President Xi Jinping will deliver a special address on Monday, while the day will also see several sessions including on the COVID-19 crisis, restoring economic growth and stakeholder capitalism. United Nations Secretary-General Antonio Guterres will also address a session. On Tuesday, the speakers would include South Africa President Cyril Ramaphosa, European Commission President Ursula von der Leyen, German Chancellor Angela Merkel, French President Emmanuel Macron, as also IMF chief Kristalina Georgieva. Republic of Korea President Moon Jae-in, Italy Prime Minister Giuseppe Conte and Israeli Prime Minister Benjamin Netanyahu are among the listed speakers for Wednesday. On Thursday, in addition to Modi, Jordan King Abdullah II ibn Al Hussein and Argentine President Alberto Fernandez will also deliver their special addresses. Singapore's Prime Minister Lee Hsien Loong and Japan's Prime Minister Yoshihide Suga will speak on Friday, the last day of the summit. On Monday, Schwab will also release his latest book, titled 'Stakeholder Capitalism: A Global Economy that Works for Progress, People and Planet. ' It explores how societies can build the future post-COVID and builds on the WEF's 50-year-old advocacy of the stakeholder approach. Other major speakers would include Christine Lagarde, Bill Gates, Punit Renjen of Deloitte, Brian T Moynihan of Bank of America, Al Gore, Ishaan Tharoor, Mark Carney, Angel Gurria of OECD, Ajay Banga, K T Rama Rao, Masayoshi Son of Softbank and Tedros Adhanom Ghebreyesus of the WHO. The list of registered participants also include Union ministers Nitin Gadkari, Smriti Irani and Piyush Goyal, along with top business leaders such as Mukesh Ambani, Gautam Adani, Ravi Ruia, Rishad Premji, Pawan Munjal, Rajan Mittal, Sunil Mittal, Ajay Khanna, Ajit Gulabchand, Hari S Bhartia and Sanjiv Bajaj. Former RBI Governor Raghuram Rajan, Tata Steel CEO T Narendran and Walmart CEO Doug McMillon are also among registered participants. The WEF's Davos 2020 summit was the last major global event that took place before almost the entire world got locked down due to the COVID-19 pandemic. The 'Davos Agenda' will also mark the launch of WEF's "Great Reset Initiative'' and begin the preparation of the special Annual Meeting in the spring, said the Geneva-based entity, which describes itself as an international organisation for public-private cooperation. Industry leaders and public figures will discuss how to advance and accelerate public-private collaboration on critical issues such as COVID-19 vaccination, job creation and climate change, among others, according to the WEF. While the WEF annual meeting for 2021 will be held during May 13-16 in Singapore, the high-profile summit will return to Davos in 2022. The conclusions from the Davos Agenda week will feed into task forces working on global issues for the upcoming Special Annual Meeting in Singapore, the WEF said.

World Economic Forum's online Davos summit begins; PM Modi to address on January 28

American brokerage BofA Securities on Friday said the Indian economy continues to be "weak", pointing to activity indicators tracked by it. On the positive side, the brokerage said credit demand is bottoming out and the real lending rates adjusted for wholesale price inflation are falling.

It can be noted that there has been a slew of reports lately about a stronger recovery being underway after the jolt caused by the pandemic. The government expects the GDP to contract 7.7 per cent in financial year 2021 because of the reverses. "The bad news is that the continued drop in our BofA India Activity Indicator reinforces our view that the economy still remains weak," the brokerage said in a note.

The indicator fell by (-) 0.6 per cent in November on top of the (-) 0.8 per cent in October, and 4.6 per cent drop in the September quarter, it said, adding, "this supports our call of GVA (gross value added) contractions of (-)1 per cent in the December quarter and (-) 6.7 per cent in FY21".

On the credit growth front, it said the rise in banking system advances seems to have bottomed out and the system will close with a growth of 6.2 per cent in the financial year 2021. It said that the credit growth for financial year 2022 will come at 12 per cent.

It can be noted that credit growth had been declining for the last few years, in sync with a dip in the overall economic growth which has been on the downward spiral since demonetisation in late 2016 as borrowers went slow on expansion.

The brokerage said that the real lending rates adjusted for WPI will be one of the prime reasons for the faster credit growth estimate in financial year 2022.

Nominal MCLR (marginal cost of funding based lending rate) is down 1.45 per cent since March 2019 and the real MCLR (adjusted for WPI) is down 1.50 per cent on RBI easing and the core WPI inflation inching up further to 3.1 per cent from 2.3 per cent in November 2020.

The RBI has cut interest rates in two moves after the emergence of the pandemic but has kept rates on hold for the last three consecutive policy reviews because of high consumer price inflation.

American brokerage BofA Securities on Friday said the Indian economy continues to be "weak", pointing to activity indicators tracked by it. On the positive side, the brokerage said credit demand is bottoming out and the real lending rates adjusted for wholesale price inflation are falling.

American brokerage BofA Securities on Friday said the Indian economy continues to be "weak", pointing to activity indicators tracked by it. On the positive side, the brokerage said credit demand is bottoming out and the real lending rates adjusted for wholesale price inflation are falling. It can be noted that there has been a slew of reports lately about a stronger recovery being underway after the jolt caused by the pandemic. The government expects the GDP to contract 7.7 per cent in financial year 2021 because of the reverses. "The bad news is that the continued drop in our BofA India Activity Indicator reinforces our view that the economy still remains weak," the brokerage said in a note. The indicator fell by (-) 0.6 per cent in November on top of the (-) 0.8 per cent in October, and 4.6 per cent drop in the September quarter, it said, adding, "this supports our call of GVA (gross value added) contractions of (-)1 per cent in the December quarter and (-) 6.7 per cent in FY21". On the credit growth front, it said the rise in banking system advances seems to have bottomed out and the system will close with a growth of 6.2 per cent in the financial year 2021. It said that the credit growth for financial year 2022 will come at 12 per cent. It can be noted that credit growth had been declining for the last few years, in sync with a dip in the overall economic growth which has been on the downward spiral since demonetisation in late 2016 as borrowers went slow on expansion. The brokerage said that the real lending rates adjusted for WPI will be one of the prime reasons for the faster credit growth estimate in financial year 2022. Nominal MCLR (marginal cost of funding based lending rate) is down 1.45 per cent since March 2019 and the real MCLR (adjusted for WPI) is down 1.50 per cent on RBI easing and the core WPI inflation inching up further to 3.1 per cent from 2.3 per cent in November 2020. The RBI has cut interest rates in two moves after the emergence of the pandemic but has kept rates on hold for the last three consecutive policy reviews because of high consumer price inflation.

Indian economy 'weak', credit growth bottoming out: US brokerage firm report

Domestic rating agency Icra Ratings on Monday said it expects the country's real gross domestic product (GDP) to grow by 10.1 per cent in FY2022.

It, however, said the value of GDP in the next financial year will only mildly surpass the level that had been recorded in FY2020.

"After a 7.8 per cent pandemic-driven shrinkage in the ongoing fiscal (FY2021), India's real GDP is projected to record a growth of 10.1 per cent in FY2022. The seemingly-sharp expansion will be led by the continued normalisation in economic activities as the roll-out of COVID-19 vaccines gathers traction, as well as the low base," the agency principal economist Aditi Nayar said in a report.

The agency's principal economist expects a multi-speed recovery in FY2022, with the contact-intensive sectors, discretionary consumption and investment by the private sector trailing the rest of the economy, in the arduous march back to attaining, and sustaining, pre-COVID levels.

"On a sobering note, we project the aggregate value of the Indian GDP in real terms in FY2022, to be only mildly higher than the level recorded in FY2020," Nayar added.

The agency expects the headline CPI inflation to decline to 4.6 per cent in FY2022 from 6.4 per cent in FY2021, while exceeding the mid-point of the Monetary Policy Committee's (MPC's) medium target of 4 per cent, for the third consecutive year.

A favourable base would moderate the retail food inflation to an average of 4.7 per cent in FY2022 from 8 per cent in FY2021, despite the pressures from edible oils, and protein items such as pulses, it said.

With the CPI inflation expected to remain above the MPC's 4 per cent target during FY2022, the agency expects an extended pause for the repo rate.

It expects the "stance of monetary policy to be changed to neutral from accommodative in the August 2021 policy review or later, only after there is greater certainty on the durability of the awaited economic revival." The report said RBI may initiate steps, in a calibrated manner, to reduce the magnitude of the systemic liquidity surplus.

Nayar said the government security yields will take a cue from the size of the borrowing programme of the central and the state governments for FY2022, as well as the outlook for inflation. The agency expects the twin deficits to display a divergent trend in FY2022.

"As the revenue shock ebbs, we project India's general government (centre + states) fiscal deficit to moderate to 8.5 per cent of GDP in FY2022 from the 12-12.5 per cent of the GDP expected in the current year," Nayar said.

However, with imports expected to revive in tune with the anticipated recovery in domestic demand, the current account balance is forecast to slip back into a modest deficit of USD 15-20 billion (or 0.6 per cent of GDP) in FY2022 from a surplus of USD 35-40 billion in FY2021, she said.

Domestic rating agency Icra Ratings on Monday said it expects the country's real gross domestic product (GDP) to grow by 10.1 per cent in FY2022. It, however, said the value of GDP in the next financial year will only mildly surpass the level that had been recorded in FY2020.

Domestic rating agency Icra Ratings on Monday said it expects the country's real gross domestic product (GDP) to grow by 10.1 per cent in FY2022. It, however, said the value of GDP in the next financial year will only mildly surpass the level that had been recorded in FY2020. "After a 7.8 per cent pandemic-driven shrinkage in the ongoing fiscal (FY2021), India's real GDP is projected to record a growth of 10.1 per cent in FY2022. The seemingly-sharp expansion will be led by the continued normalisation in economic activities as the roll-out of COVID-19 vaccines gathers traction, as well as the low base," the agency principal economist Aditi Nayar said in a report. The agency's principal economist expects a multi-speed recovery in FY2022, with the contact-intensive sectors, discretionary consumption and investment by the private sector trailing the rest of the economy, in the arduous march back to attaining, and sustaining, pre-COVID levels. "On a sobering note, we project the aggregate value of the Indian GDP in real terms in FY2022, to be only mildly higher than the level recorded in FY2020," Nayar added. The agency expects the headline CPI inflation to decline to 4.6 per cent in FY2022 from 6.4 per cent in FY2021, while exceeding the mid-point of the Monetary Policy Committee's (MPC's) medium target of 4 per cent, for the third consecutive year. A favourable base would moderate the retail food inflation to an average of 4.7 per cent in FY2022 from 8 per cent in FY2021, despite the pressures from edible oils, and protein items such as pulses, it said. With the CPI inflation expected to remain above the MPC's 4 per cent target during FY2022, the agency expects an extended pause for the repo rate. It expects the "stance of monetary policy to be changed to neutral from accommodative in the August 2021 policy review or later, only after there is greater certainty on the durability of the awaited economic revival." The report said RBI may initiate steps, in a calibrated manner, to reduce the magnitude of the systemic liquidity surplus. Nayar said the government security yields will take a cue from the size of the borrowing programme of the central and the state governments for FY2022, as well as the outlook for inflation. The agency expects the twin deficits to display a divergent trend in FY2022. "As the revenue shock ebbs, we project India's general government (centre + states) fiscal deficit to moderate to 8.5 per cent of GDP in FY2022 from the 12-12.5 per cent of the GDP expected in the current year," Nayar said. However, with imports expected to revive in tune with the anticipated recovery in domestic demand, the current account balance is forecast to slip back into a modest deficit of USD 15-20 billion (or 0.6 per cent of GDP) in FY2022 from a surplus of USD 35-40 billion in FY2021, she said.

India's real GDP to expand by 10.1 per cent in FY2022: ICRA 

The Government of India has decided that the Union Budget 2021, slated to be presented on February 1, is going to be completely paperless in the wake of the ongoing coronavirus pandemic.&nbsp;

This is a historic move as it will be for the first time in the history of independent India that the budget papers will not be printed.

Sources said the government has received permission for the same from both the Houses of Parliament.

The decision has been taken as the printing process would require several people to stay at the press for around a fortnight amid the coronavirus fears.

The budget documents are generally printed at the Finance Ministry's in-house printing press in the North Block.

This budget for the financial year 2021-22 may see several conventions being broken as the sources said that the traditional 'Halwa' ceremony may also not take place this year or a subdued function may be held with limited gathering.

This ceremony, which normally starts around January 20, is attended by all the people involved in budget-making, and marks the beginning of printing.

Once printing starts, printing staffers stay inside the press till the presentation of budget. Only a few high-ranked officials are allowed access and that too on the basis of a special identity card. The entire facility, loading-unloading and transportation are manned by the special security forces.

This is not the first time that there would be a change in tradition in the presentation of the budget under Finance Minister Nirmala Sitharaman. Last year, she did away with a colonial-era tradition of carrying Budget papers in a briefcase, and introduced the Budget 'Bahi Khata' or a ledger, enclosed in a red cloth folder and tied with a string.

(With inputs from agencies)

The Government of India has decided that the Union Budget 2021, slated to be presented on February 1, is going to be completely paperless in the wake of the ongoing coronavirus pandemic.

The Government of India has decided that the Union Budget 2021, slated to be presented on February 1, is going to be completely paperless in the wake of the ongoing coronavirus pandemic. This is a historic move as it will be for the first time in the history of independent India that the budget papers will not be printed. Sources said the government has received permission for the same from both the Houses of Parliament. The decision has been taken as the printing process would require several people to stay at the press for around a fortnight amid the coronavirus fears. The budget documents are generally printed at the Finance Ministry's in-house printing press in the North Block. This budget for the financial year 2021-22 may see several conventions being broken as the sources said that the traditional 'Halwa' ceremony may also not take place this year or a subdued function may be held with limited gathering. This ceremony, which normally starts around January 20, is attended by all the people involved in budget-making, and marks the beginning of printing. Once printing starts, printing staffers stay inside the press till the presentation of budget. Only a few high-ranked officials are allowed access and that too on the basis of a special identity card. The entire facility, loading-unloading and transportation are manned by the special security forces. This is not the first time that there would be a change in tradition in the presentation of the budget under Finance Minister Nirmala Sitharaman. Last year, she did away with a colonial-era tradition of carrying Budget papers in a briefcase, and introduced the Budget 'Bahi Khata' or a ledger, enclosed in a red cloth folder and tied with a string. (With inputs from agencies)

In a first, Finance Ministry to present paperless Budget 2021

India’s economy could prove to be the “most resilient” in the subregion of South and South-West Asia over the long term, according to a report by the UN, which says a positive but lower economic growth post-COVID-19 pandemic and the country’s large market will continue to attract investments.

The report titled ‘Foreign Direct Investment Trends And Outlook In Asia And The Pacific 2020/2021’, and compiled by United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), stated that inward FDI flows to South and South-West Asia slightly decreased by 2 per cent in 2019, from USD 67 billion in 2018 to USD 66 billion in 2019.

The growth, however, was mainly driven by India, which accounted for 77 per cent of the total inflows to the subregion and received USD 51 billion in 2019, up 20 per cent from the previous year.

The report, released last week, said the majority of these flows were destined for the Information and Communications Technology (ICT) and the construction of sub-sector.

Regarding the ICT sector, the report said the investment to India has evolved from information technology services for Multinational enterprises (MNEs) to the thriving local digital ecosystem where many domestic players, especially in e-commerce, have attracted considerable international investment.

The report added that FDI outflows from South and South-West Asia increased for the fourth consecutive year, modestly growing from USD 14.8 billion in 2018 to USD 15.1 billion in 2019.

The geographical spread of FDI outflows from the subregion remained uneven, with just two countries (India and Turkey) accounting for the vast majority of outflows in 2019, it said.

“As such, the slight increase in outward FDI was predominantly due to an increase in outflows from India, which accounted for 80 per cent of total outward investment from the subregion,” the report said, adding that in 2019, India invested USD 12.1 billion abroad, a 10 per cent increase compared with the previous year.

The report noted that in the short term, both inflows and outflows from and to the subregion are expected to decline.

In the first three quarters of 2020, the value of greenfield FDI inflows declined by 43 per cent compared to the same period last year, signaling a reversal of the growth trend in the subregion.

Most of the greenfield flows (87 per cent) were destined for India, although the overall greenfield inflows to the country declined by 29 per cent. Equally, FDI from India is projected to decline in 2020, with the largest MNEs revising their earnings down by 25 per cent in early 2020 due to the impacts of the pandemic.

“However, India’s economy could prove the most resilient in the subregion over the long term. FDI inflows have been steadily increasing and positive, albeit lower, economic growth after the pandemic and India’s large market will continue to attract market-seeking investment,” the report said.

India’s fast-growing telecom and digital space, in particular, could see a faster rebound as global venture capital firms and technology companies continue to show interest in the country’s market through acquisitions, it said.

It noted that Facebook and Google’s investment in Jio Platforms in 2020 worth USD 5.7 billion and USD 4.5 billion respectively were testaments to this trend.

“Estimates suggest that by 2025, core digital sectors such as IT and business process management, digital communication services, and electronics manufacturing could double in size.

“In addition, the pandemic has only further increased the tendency of many sectors such as agriculture, education, energy, financial services, logistics to digitalise, as COVID-19 has pushed many individual and companies to adopt digital solutions and processes,” the report said.

India has implemented a number of noteworthy investment policies and measures since 2019. Some of them include the relaxation of limits to FDI in the insurance sector, liberalisation of FDI rules which ended equity caps in several sectors including coal and lignite mining, contract manufacturing and single brand retail trading and increase in ceiling for FDI into the defense sector to 74 per cent via automatic approval route, it said.

In addition to these measures, and in direct response to the COVID-19 pandemic, the government also introduced intensified FDI screening procedures from neighbouring countries, including Afghanistan, Bangladesh, China and Nepal, it said.

The report said that as in previous years, inflows of greenfield investments have been unevenly distributed across the Asia-Pacific region. In 2019, Vietnam received the second largest share of inward greenfield investment (11 per cent), followed by India (10 per cent), and Sri Lanka (8 per cent).

Looking ahead, in the short-term investment in pharmaceutical manufacturing is forecast to decrease as many European and United States pharmaceutical companies may switch partly to more localised sourcing owing to supply-chain disruptions in the pharmaceuticals sector during COVID-19 pandemic.

“This will be important for pharmaceutical manufacturing hubs in the region, particularly in India,” the report said.

The report said that Asia-Pacific’s share in global FDI inflows dropped from 45 per cent in 2018 to 35 per cent in 2019, and its share in global FDI outflows decelerated from 52 per cent to 41 per cent.&nbsp;

India’s economy could prove to be the “most resilient” in the subregion of South and South-West Asia over the long term, according to a report by the UN, which says a positive but lower economic growth post-COVID-19 pandemic and the country’s large market will continue to attract investments.

India’s economy could prove to be the “most resilient” in the subregion of South and South-West Asia over the long term, according to a report by the UN, which says a positive but lower economic growth post-COVID-19 pandemic and the country’s large market will continue to attract investments. The report titled ‘Foreign Direct Investment Trends And Outlook In Asia And The Pacific 2020/2021’, and compiled by United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), stated that inward FDI flows to South and South-West Asia slightly decreased by 2 per cent in 2019, from USD 67 billion in 2018 to USD 66 billion in 2019. The growth, however, was mainly driven by India, which accounted for 77 per cent of the total inflows to the subregion and received USD 51 billion in 2019, up 20 per cent from the previous year. The report, released last week, said the majority of these flows were destined for the Information and Communications Technology (ICT) and the construction of sub-sector. Regarding the ICT sector, the report said the investment to India has evolved from information technology services for Multinational enterprises (MNEs) to the thriving local digital ecosystem where many domestic players, especially in e-commerce, have attracted considerable international investment. The report added that FDI outflows from South and South-West Asia increased for the fourth consecutive year, modestly growing from USD 14.8 billion in 2018 to USD 15.1 billion in 2019. The geographical spread of FDI outflows from the subregion remained uneven, with just two countries (India and Turkey) accounting for the vast majority of outflows in 2019, it said. “As such, the slight increase in outward FDI was predominantly due to an increase in outflows from India, which accounted for 80 per cent of total outward investment from the subregion,” the report said, adding that in 2019, India invested USD 12.1 billion abroad, a 10 per cent increase compared with the previous year. The report noted that in the short term, both inflows and outflows from and to the subregion are expected to decline. In the first three quarters of 2020, the value of greenfield FDI inflows declined by 43 per cent compared to the same period last year, signaling a reversal of the growth trend in the subregion. Most of the greenfield flows (87 per cent) were destined for India, although the overall greenfield inflows to the country declined by 29 per cent. Equally, FDI from India is projected to decline in 2020, with the largest MNEs revising their earnings down by 25 per cent in early 2020 due to the impacts of the pandemic. “However, India’s economy could prove the most resilient in the subregion over the long term. FDI inflows have been steadily increasing and positive, albeit lower, economic growth after the pandemic and India’s large market will continue to attract market-seeking investment,” the report said. India’s fast-growing telecom and digital space, in particular, could see a faster rebound as global venture capital firms and technology companies continue to show interest in the country’s market through acquisitions, it said. It noted that Facebook and Google’s investment in Jio Platforms in 2020 worth USD 5.7 billion and USD 4.5 billion respectively were testaments to this trend. “Estimates suggest that by 2025, core digital sectors such as IT and business process management, digital communication services, and electronics manufacturing could double in size. “In addition, the pandemic has only further increased the tendency of many sectors such as agriculture, education, energy, financial services, logistics to digitalise, as COVID-19 has pushed many individual and companies to adopt digital solutions and processes,” the report said. India has implemented a number of noteworthy investment policies and measures since 2019. Some of them include the relaxation of limits to FDI in the insurance sector, liberalisation of FDI rules which ended equity caps in several sectors including coal and lignite mining, contract manufacturing and single brand retail trading and increase in ceiling for FDI into the defense sector to 74 per cent via automatic approval route, it said. In addition to these measures, and in direct response to the COVID-19 pandemic, the government also introduced intensified FDI screening procedures from neighbouring countries, including Afghanistan, Bangladesh, China and Nepal, it said. The report said that as in previous years, inflows of greenfield investments have been unevenly distributed across the Asia-Pacific region. In 2019, Vietnam received the second largest share of inward greenfield investment (11 per cent), followed by India (10 per cent), and Sri Lanka (8 per cent). Looking ahead, in the short-term investment in pharmaceutical manufacturing is forecast to decrease as many European and United States pharmaceutical companies may switch partly to more localised sourcing owing to supply-chain disruptions in the pharmaceuticals sector during COVID-19 pandemic. “This will be important for pharmaceutical manufacturing hubs in the region, particularly in India,” the report said. The report said that Asia-Pacific’s share in global FDI inflows dropped from 45 per cent in 2018 to 35 per cent in 2019, and its share in global FDI outflows decelerated from 52 per cent to 41 per cent.

India's economy could prove to be 'most resilient' in subregion over long term: UN

Indian professionals are cautiously optimistic heading into 2021 as two in five Indian professionals expect an increase in the number of new jobs, LinkedIn year-end data shows.

LinkedIn on Thursday released a key survey and platform data for 2020. According to LinkedIn year-end data, India has remained cautiously optimistic and resilient in the face of uncertainty, and overall confidence scores remained steady between 50 and 57 from April to November.

As per the findings, two in five (40 per cent) Indian professionals expect an increase in the number of new jobs (up from 19 per cent in April), and one in two (53 per cent) expect their companies to do better in the next six months, going into 2021.

The workforce sentiment data and confidence scores are based on the online survey responses of 21,066 professionals from April to November 2020 as part of the LinkedIn Workforce Confidence Index, which is a fortnightly pulse on the confidence of the Indian workforce.

"The year 2020 was a disruptive year, and 2021 will help us tackle unforeseen challenges and prepare for new realities. Going forward, India will reimagine the future of work across five areas, specifically the workplace, careers, recruiting, business, and leadership styles," said Ashutosh Gupta, India Country Manager, Linkedin.

Gupta further noted that "in 2021, skills-first hiring will be a pivotal trend, the Chief Human Resources Officer (CHRO) will play a critical role, the virtual collaboration will become stronger, and learning will be part of everyone's job. At LinkedIn, we will continue to help professionals navigate these changes and we will stay committed to helping members get closer to opportunities."

In 2020, online learning and digital skills took centre stage and Indian professionals pivoted to upskill themselves and stay productive.

LinkedIn data states that the average number of monthly learning hours on LinkedIn Learning increased 3X from April to December 2020, compared to pre-COVID months of January and February.

As per LinkedIn's year-end findings, three in five (57 per cent) professionals say they will increase their time spent in online learning going forward.

However, working in isolation and navigating a tough job market over the past few months has adversely affected India's emotional well-being and financial outlook.

As of November 2020, four in five (78 per cent) unemployed professionals feel stressed, and only one in three (32 per cent) Indians expect their incomes to increase, heading into the New Year.

This holiday season, three in five (61 per cent) Indian professionals said they will take less time off, while about nine in ten (87 per cent) said they will spend equal or more time working at their primary jobs this year-end, it noted.

Indian professionals are cautiously optimistic heading into 2021 as two in five Indian professionals expect an increase in the number of new jobs, LinkedIn year-end data shows.

Indian professionals are cautiously optimistic heading into 2021 as two in five Indian professionals expect an increase in the number of new jobs, LinkedIn year-end data shows. LinkedIn on Thursday released a key survey and platform data for 2020. According to LinkedIn year-end data, India has remained cautiously optimistic and resilient in the face of uncertainty, and overall confidence scores remained steady between 50 and 57 from April to November. As per the findings, two in five (40 per cent) Indian professionals expect an increase in the number of new jobs (up from 19 per cent in April), and one in two (53 per cent) expect their companies to do better in the next six months, going into 2021. The workforce sentiment data and confidence scores are based on the online survey responses of 21,066 professionals from April to November 2020 as part of the LinkedIn Workforce Confidence Index, which is a fortnightly pulse on the confidence of the Indian workforce. "The year 2020 was a disruptive year, and 2021 will help us tackle unforeseen challenges and prepare for new realities. Going forward, India will reimagine the future of work across five areas, specifically the workplace, careers, recruiting, business, and leadership styles," said Ashutosh Gupta, India Country Manager, Linkedin. Gupta further noted that "in 2021, skills-first hiring will be a pivotal trend, the Chief Human Resources Officer (CHRO) will play a critical role, the virtual collaboration will become stronger, and learning will be part of everyone's job. At LinkedIn, we will continue to help professionals navigate these changes and we will stay committed to helping members get closer to opportunities." In 2020, online learning and digital skills took centre stage and Indian professionals pivoted to upskill themselves and stay productive. LinkedIn data states that the average number of monthly learning hours on LinkedIn Learning increased 3X from April to December 2020, compared to pre-COVID months of January and February. As per LinkedIn's year-end findings, three in five (57 per cent) professionals say they will increase their time spent in online learning going forward. However, working in isolation and navigating a tough job market over the past few months has adversely affected India's emotional well-being and financial outlook. As of November 2020, four in five (78 per cent) unemployed professionals feel stressed, and only one in three (32 per cent) Indians expect their incomes to increase, heading into the New Year. This holiday season, three in five (61 per cent) Indian professionals said they will take less time off, while about nine in ten (87 per cent) said they will spend equal or more time working at their primary jobs this year-end, it noted.

Indian professionals cautiously optimistic heading into 2021; 40% expect jobs to increase: LinkedIn

India's economy, severely affected by the coronavirus pandemic, is gradually recovering, the International Monetary Fund said on Thursday.

Indian economy is gradually recovering: IMF

Indian Sensex touches 45,000 mark for the first time, the Indian central bank RBI upgrades growth projections.

Indian Sensex create history by touching 45,000 mark for the first time

India's economy will return to growth in 2021/22 and higher spending in the budget due in February will lay the foundations for even stronger growth in the next four to five years, Finance Minister Nirmala Sitharaman told Reuters on Thursday.

With the world's second-highest cases of coronavirus despite a severe lockdown of its 1.3 billion people early on in the pandemic, India's economy is expected to contract nearly 10 per cent&nbsp;in the 2020/21 financial year.

But recovery is taking hold now, Sitharaman told the Reuters Global Investment Outlook Summit, 2021.

"I would think 2021-22 will be very big, good traction year for achieving a really good rate of growth that itself is going to be a launching pad for 4-5 years of growing at a good speed, provided we do enough on the budget and spend on infrastructure," she said.

Unlike other countries such as the United States, Japan, and the United Kingdom which poured billions of dollars in relief measures, the Indian government has been more measured in its approach because of limited resources and to curb its budget deficit from ballooning.

Sitharaman suggested the government could ease up on spending in the months ahead to boost the growth rate.

"I have to be conscious that if I don't spend now, then the stimulus is meaningless, if I don't spend now the revival is going to get deferred and we can't afford that."

India's economy will return to growth in 2021/22 and higher spending in the budget due in February will lay the foundations for even stronger growth in the next four to five years, Finance Minister Nirmala Sitharaman told Reuters on Thursday.

India's economy will return to growth in 2021/22 and higher spending in the budget due in February will lay the foundations for even stronger growth in the next four to five years, Finance Minister Nirmala Sitharaman told Reuters on Thursday. With the world's second-highest cases of coronavirus despite a severe lockdown of its 1.3 billion people early on in the pandemic, India's economy is expected to contract nearly 10 per cent in the 2020/21 financial year. But recovery is taking hold now, Sitharaman told the Reuters Global Investment Outlook Summit, 2021. "I would think 2021-22 will be very big, good traction year for achieving a really good rate of growth that itself is going to be a launching pad for 4-5 years of growing at a good speed, provided we do enough on the budget and spend on infrastructure," she said. Unlike other countries such as the United States, Japan, and the United Kingdom which poured billions of dollars in relief measures, the Indian government has been more measured in its approach because of limited resources and to curb its budget deficit from ballooning. Sitharaman suggested the government could ease up on spending in the months ahead to boost the growth rate. "I have to be conscious that if I don't spend now, then the stimulus is meaningless, if I don't spend now the revival is going to get deferred and we can't afford that."

India's next budget to focus on boosting growth, says finance minister

Barclays lifted its fiscal 2022 growth projection for the Indian Economy. According to Barclays the Indian economy in the fiscal year 21-22 to grow at the rate of 8.5% from an earlier projection of 7%, saying the country would have expected to "return to normal" faster than other nations.

India's economy to return to normal faster: Barclays

India is planning to announce a fresh round of stimulus totalling about $20 billion this week to help pull the economy out of its historic contraction, government officials said on Wednesday.

India planning around $20 billion of new stimulus

Finance Ministery today launched new job scheme called Atma Nirbhar Rozgar Yojana to create jobs in the country. The new scheme will be effective from October 1, 2020.

Atmanirbhar Bharat Rozgar Yojana will be aimed at incentivising the creation of employment opportunities during the&nbsp;COVID-19 recovery phase. 
 
<a href="https://www.wionews.com/india-news/what-is-atmanirbhar-bharat-rozgar-yojana-and-who-can-avail-it-342612">Also read | What is Atmanirbhar Bharat Rozgar Yojana and who can avail it?</a>

The announcement comes a day after the Union Cabinet approved a ₹2 lakh crore production-linked incentive (PLI) package to boost demand in the country.

India is seeing a "strong recovery" taking root in the economy, as seen by increased goods and service tax collections and other metrics, Finance Minister Nirmala Sitharaman said on Thursday.

The recovery is not due to just pent-up demand, Sitharaman told a news conference, ahead of announcing a new set of stimulus measures.

Government officials said on Wednesday that India was set to announce fresh stimulus this week to help pull the economy out of a historic contraction. 
 
Here are the highlights of FM Sitharaman's press conference:

11 States have availed Rs 3,621 crore under interest-free loans towards capital expenditure. IT refunds have gone in a big way to people; 1.32 lakh crore refunds given.

Under the Emergency Credit Liquidity Guarantee Scheme, a total amount of Rs 2.05 lakh crore has been sanctioned to 61 lakh borrowers, out of which Rs 1.52 lakh crore has been disbursed. Rs 1.18 lakh crore has been sanctioned to discoms of 17 states/UTs.

Bank credit growth is up 5.1%; markets are at a record high. RBI predicting a strong likelihood of economy returning to positive growth in Q3 says FM. She also noted that Moody’s has reassessed India's economic outlook, making an upward revision to its GDP forecast. 
 
The work has commenced on creating a portal for migrant workers.

There has been very good progress on 'One Nation-One Ration Card' in 28 states covering 68.8 crore beneficiaries.

About 157.44 lakh eligible farmers have received Kisan Credit Cards and sanctioned a limit of ₹1,43,262 crore in two phases.

26.2 lakh loan applications were received under the PM SVANidhi scheme for street vendors.

(With inputs from agencies)

Finance Ministery today launched new job scheme called Atma Nirbhar Rozgar Yojana to create jobs in the country. The new scheme will be effective from October 1, 2020.

Finance Ministery today launched new job scheme called Atma Nirbhar Rozgar Yojana to create jobs in the country. The new scheme will be effective from October 1, 2020. Atmanirbhar Bharat Rozgar Yojana will be aimed at incentivising the creation of employment opportunities during the COVID-19 recovery phase. Also read | What is Atmanirbhar Bharat Rozgar Yojana and who can avail it? The announcement comes a day after the Union Cabinet approved a ₹2 lakh crore production-linked incentive (PLI) package to boost demand in the country. India is seeing a "strong recovery" taking root in the economy, as seen by increased goods and service tax collections and other metrics, Finance Minister Nirmala Sitharaman said on Thursday. The recovery is not due to just pent-up demand, Sitharaman told a news conference, ahead of announcing a new set of stimulus measures. Government officials said on Wednesday that India was set to announce fresh stimulus this week to help pull the economy out of a historic contraction. Here are the highlights of FM Sitharaman's press conference: 11 States have availed Rs 3,621 crore under interest-free loans towards capital expenditure. IT refunds have gone in a big way to people; 1.32 lakh crore refunds given. Under the Emergency Credit Liquidity Guarantee Scheme, a total amount of Rs 2.05 lakh crore has been sanctioned to 61 lakh borrowers, out of which Rs 1.52 lakh crore has been disbursed. Rs 1.18 lakh crore has been sanctioned to discoms of 17 states/UTs. Bank credit growth is up 5.1%; markets are at a record high. RBI predicting a strong likelihood of economy returning to positive growth in Q3 says FM. She also noted that Moody’s has reassessed India's economic outlook, making an upward revision to its GDP forecast. The work has commenced on creating a portal for migrant workers. There has been very good progress on 'One Nation-One Ration Card' in 28 states covering 68.8 crore beneficiaries. About 157.44 lakh eligible farmers have received Kisan Credit Cards and sanctioned a limit of ₹1,43,262 crore in two phases. 26.2 lakh loan applications were received under the PM SVANidhi scheme for street vendors. (With inputs from agencies)

Aatmanirbhar Bharat Rozgar Yojana: FM announces measures to boost employment

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