India becomes 5th largest economy
According to the report of US-based think tank “World Population Review”, India has emerged as the 5th-largest world economy in 2019, overtaking the United Kingdom and France. India’s economy is the fifth-largest in the world with a gross domestic product (GDP) of $2.94 trillion. The size of the UK economy is $2.83 trillion and that of France is $2.71 trillion. These measures have helped India accelerate economic growth
In purchasing power parity (PPP), India’s GDP is $10.51 trillion, exceeding that of Japan and Germany. Due to India’s high population, India’s GDP per capita is $2,170 (for comparison, the US is $62,794). India’s real GDP growth is expected to weaken for the third straight year from 7.5% to 5%.
Moody’s cuts India’s 2020 GDP growth forecast to 5.4%
Moody’s Investors Service has cut India’s 2020 Gross Domestic Product (GDP) growth forecast to 5.4% from 6.6% and the next financial year (2020-21) growth rate estimate to 5.8% from 6.7%. According to Moody’s, due to the spread of novel coronavirus outbreak in China, worldwide growth will be affected and hence India’s economic growth recovery will be slow.
Moody’s also estimates that G20 economies will grow at a rate of 2.4 % in 2020, a sluggish move from 2019. China’s GDP growth estimated at 5.2 % in 2020 & expected to achieve GDP growth at a rate of 5.7 % in 2021.
NCAER forecasts India’s GDP growth at 4.9% for FY20
The National Council of Applied Economic Research (NCAER) has pegged India's gross domestic product (GDP) growth for 2019-20 at 4.9% as against 6.8 % in 2018 (or FY-19). It lowers its outlook due to the slowdown in almost all sectors & it is primarily driven by a simultaneous deceleration of all the drivers of aggregate demand.
Moody lowers India’s GDP growth forecast to 5.6 per cent for 2019
Moody’s Investors Service has slashed India’s economic growth forecast to 5.6% for the fiscal year 2019. It stated that the government measures do not address the widespread weakness in consumption demand, as a reason for lowering the growth forecast. It also stated that the economic activity in India will pick up in 2020 and 2021 to 6.6 % and 6.7 % respectively.
Finance Minister launches two IT initiatives ICEDASH and ATITHI
Finance Minister Nirmala Sitharaman unveiled two new IT Initiatives - ICEDASH and ATITHI for improved monitoring and pace of customs clearance of imported goods and facilitating arriving international passengers.
ICEDASH is an Ease of Doing Business monitoring dashboard of the Indian Customs helping the public see the daily Customs clearance times of import cargo at various ports and airports.
The ATITHI app will facilitate hassle-free and faster clearance by Customs at the airports and enhance the experience of international tourists and other visitors at the airports.
Moody’s cuts India’s GDP growth forecast to 5.8% for FY20
Moody’s Investors Service on Thursday cut India’s gross domestic product (GDP) growth forecast for 2019-20 to 5.8% from the earlier estimate of 6.2%. It attributed the deceleration to an investment-led slowdown that has broadened into consumption, driven by financial stress among rural households and weak job creation.
“The drivers of the deceleration are multiple, mainly domestic and in part long-lasting,” the ratings agency said in its report.
It expects growth to pick up to 6.6% in FY21 and around 7% over the medium term.
Fitch cuts India growth forecast to 6.6% for 2019-20 fiscal
Fitch on Monday lowered India's growth forecast to 6.6% for the current fiscal from 6.8% projected earlier, as manufacturing and agriculture sectors showed signs of slowing down over the past year.
In its latest Global Economic Outlook, the global rating agency retained its GDP growth forecast for the next fiscal (2020-21) at 7.1% and 7.0% for 2021-22.
In the last fiscal, Indian economy grew at a 5-year low pace of 6.8%.
Forex reserves swell by $1.8 bn to $421.8 bn
The country’s foreign exchange reserves increased by USD 1.875 billion to USD 421.867 billion in the week ending 31st May 2019.
Reserve Bank weekly data released showed that foreign currency assets, which is a major component of the overall reserves, rose by USD 1.946 billion to USD 394.134 billion.
2nd Bi-Monthly Monetary Policy Statement Released: Repo Rate Reduced to 5.75%
The 2nd Bi-Monthly monetary policy statement has been released. On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting decided to:
GDP growth plunged to a five-year low of 5.8% in the January-March quarter due to lackluster growth in agriculture, manufacturing, construction, trade, hotels and power sectors. This, in turn, pulled down the FY19 GDP growth rate to a five-year low of 6.8%. The next meeting of the MPC is scheduled during August 5 to 7, 2019.
L&T Financial Services Launches ‘Digital Sakhi’ in Tamil Nadu
L&T Financial Services’ (LTFS) ‘Digital Sakhi’, an educational programme aimed at digital financial inclusion of rural women, was launched in 20 villages of Villupuram district in Tamil Nadu.
“By making rural women the torch-bearers, this commendable programme will not only strengthen the country’s future, but also supplement the Digital India campaign launched by the Government of India,” Tamil Nadu Governor Banwarilal Purohit said after inaugurating the event in the city on Tuesday.
Overseas investors pump over Rs 9,000 crore into Indian capital markets in May
Overseas investors pumped more than 9,000 crore rupees into the Indian capital markets in last month on expectations of more business-friendly measures following the BJP's landslide victory in the general elections.
According to the latest depositories data, Foreign Portfolio Investors (FPIs) infused around 7,920 crore rupees into equities and 1,111 crore rupees in the debt market during second to -31st of May, taking the cumulative investment to around 9,031 crore rupees.
GST collections cross Rs 1 lakh crore mark for third straight month
India's goods and services tax (GST) revenue collections crossed Rs 1 lakh crore for the third straight month in May to Rs 1,00,289 crore, despite slowdown in the industrial activities. However, GST mop-up in May was lower than all-time high of Rs 1.13 lakh crore in the month of April, highest ever since the indirect tax regime was rolled out on July 1, 2017.
GST collections rose by 6.67 per cent over the revenue of Rs 94,016 crore reported in May 2018. The revenue in May, 2019 was 2.21 per cent higher than the monthly average of GST revenue in financial year 2018-19 (Rs 98,114 crore), according to a data released by the Ministry of Finance.
G20 digital tax takes step closer
Global efforts to impose a unified tax policy on Google, Facebook and other internet giants have cleared a major hurdle ahead of a G20 summit in Japan, officials said Friday.
The Paris-based Organisation for Economic Cooperation and Development said that 129 countries had signed off on a roadmap to grab a fairer tax share of the companies' booming sales.
World Bank, CommBank Team Up For ‘World 1st’ Blockchain Bond Transaction
The World Bank and the Commonwealth Bank of Australia (CommBank) have teamed up to enable recording of secondary market bond trading using blockchain tech.
The institutions announced Wednesday that their successful recording of a secondary transaction for bond-i, a blockchain-operated debt instrument, on a distributed ledger shows the “vast potential” of the technology, and marks the first bond to have both issuance and trading recorded on a blockchain platform.
WPI Inflation Slides To 3.07% in April
Wholesale Price Index (WPI)-based inflation for April eased to 3.07 per cent, from 3.62 per cent in the same month last year.
The latest WPI print was also lower than 3.18 per cent recorded in March this year. Build up inflation for the financial year so far was 0.75 per cent, lower than 0.86 per cent in the corresponding period of the previous year.
Asia-Pacific To Grow 5.7% In 2019: ADB
The Asia-Pacific region is expected to power ahead growing at 5.7% this year but escalating trade tensions are a source of worry, according to Takehiko Nakao, President and Chairperson, Asian Development Bank.
Addressing the opening session of the Board of Governors at ADB’s 52nd Annual Meeting here, Mr. Nakao said that consumer and investor behaviour could be undermined by trade tensions between countries.
Government Retains Interest Rate For General Provident Fund at 8%
The central government on Wednesday retained the interest rate for General Provident Fund (GPF) and other similar funds at 8 per cent for the April-June quarter, which is in line with that of Public Provident Fund (PPF).
The interest rate on GPF was fixed at 8 per cent during the quarter ended March, 2019.
"During the year 2019-20, accumulations at the credit of subscribers to the GPF and other similar funds shall carry interest at the rate of 8 per cent with effect from April 1 to June 30, 2019," the Department of Economic Affairs said in a notification.
Emirates Islamic Becomes World’s 1st Islamic Bank To Launch Banking Via WhatsApp
Emirates Islamic has announced the launch of Chat Banking services for customers via WhatsApp, marking a global first in the Islamic banking sector. The bank’s customers will now able to conduct daily banking activities via WhatsApp in a seamless and hassle-free manner.
The Chat Banking solution, supported by Infobip, further enhances Emirates Islamic’s suite of digital banking channels and allows customers to use features such as checking account balances and temporarily blocking or unblocking of an existing card.
BSE, HDFC Bank Tie Up To Strengthen Startup Platform
The BSE has signed a memorandum of understanding (MoU) with HDFC Bank with an objective to strengthen the BSE Startups platform. The MoU has been signed to spread more awareness on the benefits of the listing of startups on this BSE startup platform.
The exchange had launched the startup platform in December, with an aim to encourage entrepreneurs to get listed and raise equity capital for their growth and expansion.
IMF Cuts India’s GDP Growth Forecast To 7.3% For FY20
The International Monetary Fund (IMF) cut its economic growth forecasts for India by 20 basis points (bps) each from its January predictions to 7.3% for FY20 and 7.5% for the next fiscal.
Citing persistent risks from the trade war, it lowered 2019 global growth forecast by 20 basis points to 3.3%, the weakest since 2009 when the subprime crisis had flared up.
India Highest Recipient of Remittances At $79 billion in 2018: World Bank
India retained its position as the world's top recipient of remittances with its diaspora sending a whopping USD 79 billion back home in 2018, the World Bank said in a report Monday.
India was followed by China (USD 67 billion), Mexico (USD 36 billion), the Philippines (USD 34 billion), and Egypt (USD 29 billion), the global lender said.
With this, India has retained its top spot on remittances, according to the latest edition of the World Bank's Migration and Development Brief.
RBI Issues Norms For Banks To Set Up Currency Chests
The Reserve Bank of India Monday came out with guidelines for banks to set up new currency chests, which include minimum area of 1,500 square feet for strong room. "Area of the strong room/ vault of at least 1,500 sq ft. For those situated in hilly/ inaccessible places, the strong room/ vault area of at least 600 sq ft," the RBI said while specifying minimum standards for setting up new currency chests.
Besides, the new chests should have a processing capacity of 6.6 lakh pieces of banknotes per day.
For those situated in the hilly/ inaccessible places, capacity of 2.1 lakh pieces of banknotes per day.
Earlier, a RBI appointed committee had recommended that the apex bank should encourage banks to open large currency chests with modern facilities and Chest Balance Limit (CBL) of at least Rs 1,000 crore.
ADB, in its flagship publication Asian Development Outlook 2019, mentioned that recent policy measures by the Government to improve the investment climate and boost private consumption and investment will help India to lift economic growth in the next two fiscal years. ADB projection is slightly higher than projections by other agencies which estimated growth rate between 7 to 7.1 per cent.
Expert Committee Recommends Rs 9,750 Monthly National Minimum Wage
RBI To Inject Rs 37,500 Crore Through OMO In February