IMF suggests 3 steps to India to sustain high growth rate
Business | June 29, 2018 16:53 ISTIndia's growth accelerated to 7.7 per cent in the fourth quarter of Financial Year (FY) 2017-18.
India's growth accelerated to 7.7 per cent in the fourth quarter of Financial Year (FY) 2017-18.
Arguing that BJP-led government was committed to fiscal consolidation, PM Modi said that the rising crude prices have not resulted in a spike in inflation and the macroeconomic fundamentals of the country remain strong.
Speaking to the media, Goyal said India has already picked up almost 28 per cent - or $1.4 billion - AIIB's total lending’s, for seven projects in the country.
The rate hike by RBI and the oil prices raise concerns over the sustainability of what was termed as a "cyclical, broad-based recovery", Nomura's chief India economist Sonal Varma said.
The 30-share BSE Sensex opened on a strong footing at 35,278.38 and maintained its upward trend to hit the day's high of 35,628.49.
However, the GDP growth during the third quarter (Q3) of the fiscal was revised to 7 per cent from 7.2 per cent, as was declared in February.
The Asian Development Bank (ADB) has projected India to remain the fastest growing Asian nation with 7.3 per cent growth in 2018-19, and 7.6 per cent in 2019-20.
US investment banker Morgan Stanley said on Thursday that lower return expectations from the Indian stock market is due to persistent growth disappointment of past few years, signalling low investor confidence in the nation's growth story.
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.
According to the data released by the Finance Ministry on Monday, 6.84 crore returns were filed during 2017-18, significantly higher than 5.43 crore filed in the previous fiscal.
"We are growing decently as an economy, but we are not creating jobs because those who have skills aren't getting access to finance and support," Gandhi said.
"The BJP-led government messed up the Indian economy. The ill-considered demonetisation and hastily implemented GST have destroyed small scale enterprises," he said.
Calling this development a "welcome change", an IMF official said the growth prospects remain positive.
The 3rd quarter growth of 7.2% was highest in 5 quarters. The previous high was recorded at 7.5% in the July-September quarter of 2016-17. In the first quarter of the current fiscal, the GDP grew at 5.7%, while the second quarter growth stood at 6.5%
Pranab Mukherjee, however, said that to sustain such a growth rate for the longer term, the country will need to address issues like employability for the youth and boosting the rural economy.
With this, India has reclaimed the status of fastest-growing major economy in the world, surpassing China which grew by 6.8% in the October-December period.
Indian economy grew at 7.2 per cent in October-December quarter of the current fiscal, official data released by the Central Statistics Office (CSO) showed today.
Official data released by the Comptroller General of Accounts (CGA) today showed that during April-January, the capital expenditure during the period stood at Rs 2.64 lakh crore.
Chidambaram, who served as the finance and home minister in the UPA government, wrote on Twitter, "For participants in the Global Business Summit: best decadal growth was under the UPA government between 2004 and 2014."
According to country-sourced statistics provided to the IMF, NPLs as a share of all loans (i.e. NPL slippage ratio) in India stood at 9.7 per cent in the third quarter of 2017, compared with 1.7 per cent in China (IMF 2017).
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