After a near-certain contraction last year for the third time since 2019, Hong Kong’s economy is coming back stronger this year and may even grow faster than rival financial hub Singapore for the first time in more than a decade.

World Business Watch: Hong Kong's GDP growth likely to be above Singapore's

Global ratings agency Fitch on Tuesday sharply revised its forecast to India's GDP growth, estimating that it will contract 10.5%, while Goldman Sachs expects it to decline by 14.8%in the current fiscal year.

Global rating agencies cut India's GDP forecast

According to the National Statistical Office (NSO), India's<a href="https://www.wionews.com/business-economy/indias-gdp-seen-growing-at-47-in-december-quarter-283196"> Gross Domestic Product</a>(GDP) slipped to 4.7 per cent in October-December 2019.

<a href="https://www.wionews.com/business-economy/india-china-to-account-for-nearly-35-of-global-gdp-in-2060-study-278393">Also Read: India, China to account for nearly 35% of global GDP in 2060</a>

India's GDP was 5.6 per cent in the corresponding quarter of 2018-19.

India's economy grew 5.1 per cent in the nine-month period between April-December 2019 as against 6.3 per cent in the same period a year ago, the NSO informed.

The NSO pegged economic growth at 5 per cent in 2019-20 on Friday. India's Reserve Bank had pegged India's GDP growth at 5 per cent for 2019-20.

The Controller General of Accounts (CGA) informed that India's fiscal deficit touched 128.5 per cent of the whole year budget target at January-end, the government had targeted to restrict the fiscal deficit at Rs 7,66,846 crore during the year ending March 31, 2020.

In the Budget, finance minister&nbsp;Nirmalal Sitharaman had raised fiscal deficit target to 3.8 per cent of the GDP from 3.3 per cent earlier for 2019-20.

According to the National Statistical Office (NSO), India's Gross Domestic Product(GDP) slipped to 4.7 per cent in October-December 2019. Also Read: India, China to account for nearly 35% of global GDP in 2060 India's GDP was 5.

According to the National Statistical Office (NSO), India's Gross Domestic Product(GDP) slipped to 4.7 per cent in October-December 2019. Also Read: India, China to account for nearly 35% of global GDP in 2060 India's GDP was 5.6 per cent in the corresponding quarter of 2018-19. India's economy grew 5.1 per cent in the nine-month period between April-December 2019 as against 6.3 per cent in the same period a year ago, the NSO informed. The NSO pegged economic growth at 5 per cent in 2019-20 on Friday. India's Reserve Bank had pegged India's GDP growth at 5 per cent for 2019-20. The Controller General of Accounts (CGA) informed that India's fiscal deficit touched 128.5 per cent of the whole year budget target at January-end, the government had targeted to restrict the fiscal deficit at Rs 7,66,846 crore during the year ending March 31, 2020. In the Budget, finance minister Nirmalal Sitharaman had raised fiscal deficit target to 3.8 per cent of the GDP from 3.3 per cent earlier for 2019-20.

India's GDP growth slips to 4.7% in December quarter

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

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

Decoding The Ongoing Economic Slowdown In India.

Gravitas: India's GDP Growth Rate Slumps To A 6-year Low

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

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

The Reserve Bank of India (RBI) cut repo rate by 35 basis points to 5.40 per cent on Wednesday.

Repo rate is the rate at which the RBI lends money to commercial banks. A repo rate cut allows banks to reduce interest rates for consumers on loans, and lowers equal monthly instalments on home loans, car loans and personal loans.&nbsp;

The current cut in rates would mean loans would get cheaper.

India's central bank adjusted the country's GDP projection to 6.9 per cent for the current fiscal year from the earlier projection of 7 per cent.

The RBI said in a statement that the cut would help "address growth concerns by boosting aggregate demand" and target private investment as a "priority".

In June, the RBI had cut the repo rate by 0.25 per cent while also cutting down&nbsp;India's GDP growth forecast for FY20 from 7.2 per cent to 7 per cent.

The Reserve Bank of India (RBI) cut repo rate by 35 basis points to 5.40 per cent on Wednesday. Repo rate is the rate at which the RBI lends money to commercial banks.

The Reserve Bank of India (RBI) cut repo rate by 35 basis points to 5.40 per cent on Wednesday. Repo rate is the rate at which the RBI lends money to commercial banks. A repo rate cut allows banks to reduce interest rates for consumers on loans, and lowers equal monthly instalments on home loans, car loans and personal loans. The current cut in rates would mean loans would get cheaper. India's central bank adjusted the country's GDP projection to 6.9 per cent for the current fiscal year from the earlier projection of 7 per cent. The RBI said in a statement that the cut would help "address growth concerns by boosting aggregate demand" and target private investment as a "priority". In June, the RBI had cut the repo rate by 0.25 per cent while also cutting down India's GDP growth forecast for FY20 from 7.2 per cent to 7 per cent.

RBI cuts repo rate by 35 basis points to 5.40%; loans to get cheaper

Moody&#39;s Investors Service on Monday said continued reforms to enhance business environment and moderate inflation will help India achieve robust growth, but cautioned that rising contingent liability risks in the banking sector could affect its credit quality. 
 
Evidence of success in policymakers&#39; efforts to introduce growth-enhancing economic and institutional reforms would provide support for a rating upgrade, Moody&#39;s said in its Annual Credit Analysis as it forecast GDP growth at about 7.5&nbsp;per cent&nbsp;for next two years. 
 
&quot;Sustained fiscal consolidation, stable inflation at moderate levels and progress on reforms aimed at enhancing the business environment would contribute to sustained growth at robust levels. In turn, persistent income and profit growth would raise government revenues and contribute to improved fiscal metrics. However, we expect the benefits to be very gradual,&quot; Moody&#39;s said. 
 
India&#39;s credit profile is supported by strong growth potential and high private savings rate, it said. 
 
&quot;Conversely, signs of slippage in progress towards those goals or indications of rising contingent liability risks related to the banking sector could weigh on India&#39;s credit quality,&quot; Moody&#39;s added. 
 
India&#39;s strengths are balanced against a high government debt burden (67.4 per cent of GDP in 2015), regulatory and infrastructure constraints on its competitiveness,&nbsp;slow&nbsp;pace of policy reform, and the contingent liability risk to the sovereign from public sector banks&#39; high and rising non-performing loans. 
 
&quot;Looking ahead, evidence of success in policymakers&#39; efforts to introduce growth-enhancing and growth-stabilising economic and institutional reforms would provide support for a rating upgrade,&quot; it said. 
 
Moody&#39;s further said that institutional strength is apparent in robust democratic apparatus. Offsetting weaknesses include an uncertain regulatory environment, corruption, a slow-moving judicial system and, in general, inefficiencies in the delivery of government services, it added. 
 
&quot;At the current juncture, political fragmentation leads to slow and ad-hoc progress on reforms. Progress on land and labour reforms, when it has occurred has been limited and gradual,&quot; it said. 
 
Moody&#39;s said the positive outlook on India&#39;s rating reflects our expectation that policies over the next 12 to 18 months will support sustained growth, accompanied by narrower fiscal deficits, low current account deficits, increased savings and investment, and inflation that is within the central bank&#39;s target. 
 
Over the past year, it said external developments favourable to India such as lower global oil prices have combined with policy measures to move the economy towards a more stable macroeconomic development with smaller fiscal deficits, lower inflation and a narrower current account deficit.

Moody&#39;s analyses India&#39;s credit profile in terms of economic, institutional and fiscal strength and susceptibility to event risk.
&quot;We expect corporates&#39; profitability to remain muted which will continue to dampen their ability and willingness to invest in the next few quarters. We forecast real GDP growth at about 7.5&nbsp;per cent&nbsp;in the next two years,&quot; Moody&#39;s said. 
 
Material improvements to India&#39;s public finances will likely be limited in the near term, and deficit reduction will come from either cyclical upswings or tactical fiscal management, rather than a broad-based fiscal consolidation strategy. 
 
Moody&#39;s said India&#39;s susceptibility to event risk is driven by banking sector risk. As banks continue to recognise bad assets, non-performing loans will rise further, particularly for public sector banks (PSBs), albeit at a slower pace than at the end of 2015. 
 
The agency estimates the capital needs of PSBs to be notably larger than the Rs 70,000 crore of equity over the next four years proposed by the government. 
 
&quot;The authorities&#39; focus on bad asset recognition and provisioning in the banking system, as well as the recent passage of a new bankruptcy bill, would be credit positive from a sovereign perspective&nbsp;if it led to improved bank capitalisation levels, renewed loan growth and robust risk processes,&quot; Moody&#39;s said. 
 
The US-based agency said that reforms to improve the business environment will help to realise India&#39;s growth potential, but the benefits of these measures would be very gradual. 
 
The &#39;Make in India&#39; programme aims to increase the share of manufacturing to 25&nbsp;per cent&nbsp;in 2020 from the current 16&nbsp;per cent. This implies growth in manufacturing value added of 12-14&nbsp;per cent&nbsp;per year, compared with only 8.1&nbsp;per cent&nbsp;in FY2016, Moody&#39;s added. 
 
&quot;But inadequate infrastructure, limited flow of workers from the agriculture sector and, to some extent, only moderate levels of investment in innovation will hamper growth in the manufacturing sector and the economy as a whole. These factors are likely to prevent a sharp improvement in India&#39;s competitiveness,&quot; it said. 
 
(PTI)

The study estimates that capital needs of public sector banks will be larger than the proposed $10.45 billion of equity in 4 years

Moody's Investors Service on Monday said continued reforms to enhance business environment and moderate inflation will help India achieve robust growth, but cautioned that rising contingent liability risks in the banking sector could affect its credit quality. Evidence of success in policymakers' efforts to introduce growth-enhancing economic and institutional reforms would provide support for a rating upgrade, Moody's said in its Annual Credit Analysis as it forecast GDP growth at about 7.5 per cent for next two years. "Sustained fiscal consolidation, stable inflation at moderate levels and progress on reforms aimed at enhancing the business environment would contribute to sustained growth at robust levels. In turn, persistent income and profit growth would raise government revenues and contribute to improved fiscal metrics. However, we expect the benefits to be very gradual," Moody's said. India's credit profile is supported by strong growth potential and high private savings rate, it said. "Conversely, signs of slippage in progress towards those goals or indications of rising contingent liability risks related to the banking sector could weigh on India's credit quality," Moody's added. India's strengths are balanced against a high government debt burden (67.4 per cent of GDP in 2015), regulatory and infrastructure constraints on its competitiveness, slow pace of policy reform, and the contingent liability risk to the sovereign from public sector banks' high and rising non-performing loans. "Looking ahead, evidence of success in policymakers' efforts to introduce growth-enhancing and growth-stabilising economic and institutional reforms would provide support for a rating upgrade," it said. Moody's further said that institutional strength is apparent in robust democratic apparatus. Offsetting weaknesses include an uncertain regulatory environment, corruption, a slow-moving judicial system and, in general, inefficiencies in the delivery of government services, it added. "At the current juncture, political fragmentation leads to slow and ad-hoc progress on reforms. Progress on land and labour reforms, when it has occurred has been limited and gradual," it said. Moody's said the positive outlook on India's rating reflects our expectation that policies over the next 12 to 18 months will support sustained growth, accompanied by narrower fiscal deficits, low current account deficits, increased savings and investment, and inflation that is within the central bank's target. Over the past year, it said external developments favourable to India such as lower global oil prices have combined with policy measures to move the economy towards a more stable macroeconomic development with smaller fiscal deficits, lower inflation and a narrower current account deficit. Moody's analyses India's credit profile in terms of economic, institutional and fiscal strength and susceptibility to event risk. "We expect corporates' profitability to remain muted which will continue to dampen their ability and willingness to invest in the next few quarters. We forecast real GDP growth at about 7.5 per cent in the next two years," Moody's said. Material improvements to India's public finances will likely be limited in the near term, and deficit reduction will come from either cyclical upswings or tactical fiscal management, rather than a broad-based fiscal consolidation strategy. Moody's said India's susceptibility to event risk is driven by banking sector risk. As banks continue to recognise bad assets, non-performing loans will rise further, particularly for public sector banks (PSBs), albeit at a slower pace than at the end of 2015. The agency estimates the capital needs of PSBs to be notably larger than the Rs 70,000 crore of equity over the next four years proposed by the government. "The authorities' focus on bad asset recognition and provisioning in the banking system, as well as the recent passage of a new bankruptcy bill, would be credit positive from a sovereign perspective if it led to improved bank capitalisation levels, renewed loan growth and robust risk processes," Moody's said. The US-based agency said that reforms to improve the business environment will help to realise India's growth potential, but the benefits of these measures would be very gradual. The 'Make in India' programme aims to increase the share of manufacturing to 25 per cent in 2020 from the current 16 per cent. This implies growth in manufacturing value added of 12-14 per cent per year, compared with only 8.1 per cent in FY2016, Moody's added. "But inadequate infrastructure, limited flow of workers from the agriculture sector and, to some extent, only moderate levels of investment in innovation will hamper growth in the manufacturing sector and the economy as a whole. These factors are likely to prevent a sharp improvement in India's competitiveness," it said. (PTI)

Moody's: India GDP growth rate will be about 7.5% over next two years

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