IMF maintains India’s FY19 growth at 7.4%; cautions govt on fiscal deficit

Source: Business Standard, Apr 18, 2018

New Delhi: The International Monetary Fund (IMF) has maintained its forecast for India’s economic growth at 7.4% in 2018-19, which will again make the country the fastest-growing large economy after losing this tag to China by a close margin in 2017-18. For 2019-20, the IMF has projected India to grow at 7.8%. By comparison, the Chinese economy is expected to slow down to 6.4% in 2019, down from 6.6% in 2018.

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India is likely to have grown 6.7% in 2017-18, the IMF said. In fact, the IMF projection for 2017-18 is a tad higher than 6.6%, pegged by the second Advance Estimates by the Central Statistics Office. China grew 6.9% in 2017.

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India to grow 7.3% this fiscal, 7.6% in next: ADB

Source: The Hindu Business Line, Apr 11, 2018

New Delhi: India’s economic growth is expected to rebound to 7.3 per cent this fiscal and further to 7.6 per cent in 2019-20 with increased productivity post GST and investment revival due to banking reform, the Asian Development Bank (ADB) said today.

The economy grew 6.6 per cent in the last fiscal as it battled the lingering effects of demonetisation in 2016, businesses adjusting to Goods and Services Tax (GST) in 2017, and a subdued agriculture. The ADB’s growth projection of 7.3 per cent this fiscal is in line with that of rating agency Fitch, but a tad lower than RBI’s forecast of 7.4 per cent.

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Growth of Indian Economy

Source: IBEF.org, Apr 09, 2018

New Delhi: As per the World Economic Situation and Prospects 2018 report of the United Nations, the Indian economy is projected to grow at 7.2 per cent in 2018-19 and 7.4 per cent in 2019-20. The report indicates that the outlook for India remains largely positive, underpinned by robust private consumption and public investment as well as ongoing structural reforms.

Share of public sector (including public financial corporations, public non-financial corporations and General Government) in total Gross Fixed Capital Formation (GFCF) increased from 21.4 per cent in 2011-12 to 23.3 per cent in 2014-15 and further to 25.1 per cent in 2016-17 (the latest year for which data is available). The share of public GFCF in GDP at current prices increased from 7.0 per cent in 2014-15 to 7.2 per cent in 2016-17. The average contribution of public sector GFCF to GDP growth was 9.5 per cent from 2014-15 to 2016-17, as compared to 3.0 per cent in 2012-13.

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Top 36 families in India own more than one-fourth of country’s GDP but the time is changing

Source: Financial Express, Apr 07, 2018

Top 36 families in India own more than a quarter of country’s GDP, and that’s not the end of the story. In the past two decades India has seen a dramatic increase in wealth for family-run businesses, the latest edition of Knight Frank Wealth Report said. And the reason for so much wealth being accumulated to a small number of families is the succession planning where the desire to preserve wealth for future generations and to leave a lasting legacy is important.

However, the report cautions that wealthy families in present time may not be prepared to pass on their wealth and legacy. “Our research into wealth transfer found that a significant number of wealthy families are unprepared to pass on their legacy and knowledge to the next generation. Just 26% have a full wealth transfer plan in place and the findings showed that the next generation is not being educated early enough about the management of wealth,” the report said.

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GDP growth projected to strengthen to 7.4% in FY19; 7.3-7.6% in H2: RBI

download (4)Source: Business Standard, Apr 05, 2018

Mumbai: The Reserve Bank expects India’s economic growth rate to strengthen to 7.4 per cent in the current fiscal, from 6.6 per cent in 2017-18, on account of revival in investment activity.

The growth will accelerate from 7.3-7.4 per cent in first half of 2018-19 to 7.3-7.6 per cent in the second of half of the current fiscal, said the first bi-monthly monetary policy statement for 2018-19.

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Higher trade deficit pushes up Q3 CAD to 2% of GDP at $13.5 bn

Source: The Hindu Business Line, Mar 16, 2018

Mumbai: The current account deficit rose to 2 per cent of the GDP at $ 13.5 billion in the December quarter, up from $ 8 billion or 1.4 per cent in the year-ago period, on the back of higher trade deficit, shows the Reserve Bank data.The CAD, which shows the difference between foreign exchange earned and spent, stood at $ 7.2 billion or 1.1 per cent of gross domestic product (GDP) in the preceding September quarter, according to data released by the central bank today.

“The widening of the CAD on a year-on-year basis is primarily due to a higher trade deficit which rose to $ 44.1 billion in the reporting quarter due to a larger increase in merchandise imports relative to exports,” the central bank said in a statement.

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World Bank projects 7.3% growth for India in FY19 and 7.5% in FY20

download (3)Source: Business Standard, Mar 14, 2018

New Delhi: The World Bank on Wednesday projected India’s GDP growth at 7.3 per cent for the next financial year and accelerate further to 7.5 per cent in 2019-20.

The World Bank’s biannual publication, India Development Update: India’s Growth Story, expects the economy to clock a growth rate of 6.7 per cent in the current financial year ending March 31.

The report, however, observed that a growth of over 8 per cent will require “continued reform and a widening of their scope” aimed at resolving issues related to credit and investment, and enhancing competitiveness of exports.

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