Tag: GDP

Business

India Becomes 5th Largest Economy Of The World

HT News

IMF’s October World Economic Outlook places India as the world’s fifth largest economy. The data says that according to the nominal GDP, India ranking is ahead than that of France and the UK.

IMF ranks India as 5th largest economy

The data shows that India’s GDP had been among the highest in the last decade. India achieved an annual growth of 6-7%. 2016 McKinsey Global Institute report gave many reasons for this growth. It said that urbanization and technologies improved efficiency and productivity. But the country’s real GDP was forecast to slow due to credit weakness.

Indian economy on the rise

In 2010, India was placed at 9th place behind countries like Brazil and Italy. But the country witnessed a dramatic rise in the last two and a half decade. The country’s nominal GDP has jumped more than 700% since 1995.

Challenges ahead for Indian economy

The country has many challenges to face despite showing strong potential to high growth. The World Bank report says that access to development and new opportunities has been uneven in the country.

According to UN, one-quarter of world’s poor live in India; only 39% of Indian population has access to sanitation facilities and nearly half of the Indians still defecate in the open.

Milestones achieved

The country achieved significant milestones in poverty reduction that is highest in the world. Today 160 million fewer people live in extreme poverty in 2000 compared to 2015. Also, the country is looking for more ways to ensure sustainable and inclusive future growth.

Source: https://bit.ly/3931YrK

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Banking Business

Foreign Analysts Fear Revision Of Rates By RBI In 2020

HT News

Analyst said on Monday that RBI could hike rates this year because of possible inflationary impact the economy would have while trying to meet the fiscal deficit target of 3.5% for FY2020-21.

The analysts pointed towards the finance minister Nirmala Sitharaman discussing disinvestment where the government under-performed to achieve the 3.8% fiscal deficit target in FY2019-20.

Analysis of growth

The government wants to push the growth but with the help of a clause that allows the government to stretch its commitments under the Fiscal Responsibility and Budget Management Act by 0.5%. But it would show that the government missed the target for the third consecutive year.

Analysts of foreign brokerage Bank of America welcomed the government’s stand while flagging risks to the target. They see a 0.30% if GDP upside risk to the fiscal deficit target because of high disinvestment assumption of Rs. 2.10 lakh crore in FY21 that is almost three times of FY20’s Rs. 65,000 crore.

Goldman Sachs analysis

The analysts said that the achievement of government relies on privatization initiatives. They also said that if the estimates of revenue collections don’t materialize, the government would have to resort to expenditure cuts again.

They further said that any rise in fiscal deficit would be accompanied by a spike in inflation but it is already beyond the comfort level of RBI. The analysts said that it is more likely that RBI could shift its monetary policy from neutral to accommodative in the weekly review and it is likely to hike the rates in 2020 as well.

Source: https://bit.ly/36XB02W

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