India's economic growth is "much weaker" than expected, the IMF said on Thursday, attributing the reasons to corporate and environmental regulatory uncertainty and lingering weaknesses in some non-bank financial companies.
Priyanka Gandhi has launched a scathing attack on the Modi government vis-a-vis economic slowdown. "The economy is falling into a deep abyss of recession. The sword is hanging on the livelihood of lakhs of Indians," Priyanka Gandhi said.
Former president Pranab Mukherjee on Thursday said education is the foundation for the happiness of the people and is as important as the gross domestic product (GDP) of a country.
Just a week back, a plunge in domestic private consumption demand, slump in manufacturing, halving of merchandise exports growth, and a high-base effect from last year gnawed away at first-quarter growth which came in at 5 per cent.
Former finance minister, P Chidambaram on Tuesday mocked the Modi government on the country's slow economic growth. Chidambaram was questioned by the media about his extended CBI custody outside Delhi court premises when Chidambaram said "5%, GDP is 5%" pointing towards the media.
Noting the gloomy start to the current fiscal with a dismal 5 per cent growth in the first quarter, broking house Kotak Equities on Tuesday also cut down India's 2019-20 GDP gorwth estimate to 5.8 per cent and said it sees the RBI cutting its key interest rate by 40 basis points (bps) in the central bank's October monetary policy review.
BJP spokesperson Sambit Patra told a press conference that Indian economy is doing "quite well" despite a global slowdown, adding that the Modi government in its six years has laid a "formal foundation" with measures like the GST and tax reforms.
India's economic growth dropping to an over six-year low of 5 per cent in April-June 2019 is indicating a "significant deceleration" in both investment and consumer demand, industry body Ficci said on Saturday.
Taking to microblogging site Twitter, Priyanka said: "It is clear from the GDP (Gross Domestic Product) growth rate that the BJP government, which is blowing the trumpet of good days, has punctured the economy."
Illustrating the impact of lower GDP growth, R. Nagraj, professor of economics at Indira Gandhi Institute of Development Research, said that given per capita monthly income of Rs 10,534 in 2018-19, annual GDP growth of 5% means that the per capita income will go up by Rs 526 in FY20.
Addressing a press conference at the party headquarters, Congress leader Anand Sharma said: "India is in a deep financial crisis. The economy is in shambles. All indicators of development are low. And India's GDP is continuously falling."
Following are the top business stories of Friday, August 23. Nirmala Sitharaman's much-awaited announcement on FPI surcharge is finally here along with some good news for Auto sector that was witnessing its worst crisis in decades. IndiaTvNews.com brings to you the business news round-up of the day.
Prime Minister Narendra Modi met Union Finance Minister Nirmala Sitharaman today amid reports of a slowdown in various sectors. PM Modi is likely to announce a series of measures to infuse more energy in the economy, news agency IANS reports.
A recent IIM Ahmedabad research paper titled ‘Over estimation in the growth rate of National income’ by Sebastian Morris and Tejshwi Kumari used similar methods to conclude that India over-estimated its growth rate.
The Committee on Welfare of Other Backward Classes (OBCs) also said, in a report, that the income ceiling to determine the ‘creamy layer', should be revised periodically – three yearly or less.
Fiscal deficit for the month of April was at Rs 1,57,048 crore which is 22 per cent of the budgeted estimate for the year 2019-20, slightly lower than what it was in the same period a year ago and as a percentage to the GDP, the fiscal deficit is at 0.75 per cent, Department of Expenditure (DoE) figures showed.
“We revise down our real GDP forecast for FY20 to 6.8 per cent YoY versus 7 per cent earlier,” the bank said.
In a paper, EAC-PM said India's GDP estimation methodology stands at par with its global standing as a major and responsible economy. Primary contributors of the paper are economists Bibek Debroy, Rathin Roy, Surjit Bhalla, Charan Singh, Arvind Virmani.
Fitch was optimistic on India's growth, saying that the monetary and regulatory easing from the Reserve Bank of India, along with a recovery in portfolio inflows, should support a recovery in credit to the private sector and reverse the drag from the negative credit impulse.
"India changed its data sources and methodology for estimating real GDP for the period since 2011-12. This paper shows that this change has led to a significant overestimation of growth," he said.
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