BJP condemns Pragya Thakur’s remarks on Godse, drops her from defence panel

The World Bank says that a lack of credit and drop in private consumption have led to a gloomy growth outlook for India with a steep cut in growth rate for the current fiscal year and only a modest gain projected for the next year.

India's growth rate is forecast to be only 5 per cent for the current fiscal year, weighed down by a growth of only 4.5 per cent in the July-September quarter, according to the 2020 Global Economic Prospects report released on Wednesday.

"In India, [economic] activity was constrained by insufficient credit availability, as well as by subdued private consumption," the Bank said.

The growth rate is forecast by the Bank to pick up to 5.8 per cent in the next fiscal year and to 6.1 per cent in 2021-22.

India's growth rate was 6.8 per cent in 2018-19.

The 5 per cent growth rate projection for the current financial year is a sharp cut of 2.5 per cent from the 7.5 per cent forecast made by the Bank in January last year, toppling it from the rank of the world's fastest growing economy.

India's performance follows a global trend of lowered growth weighed down by developed economies.

The report estimated world economic growth rate to be only 2.4 per cent last year and forecast it to edge up 0.1 per cent to 2.5 per cent in the current year.

Even with the lower growth rate of 5 per cent in the current fiscal year and 5.8 per cent forecast for the next, India holds the second rank among large economies, behind only China with an estimated growth rate of 6.1 per cent for 2019 and 5.9 per cent this year.

The report blamed "weak confidence, liquidity issues in the financial sector" and "weakness in credit from non-bank financial companies" for India's slowdown.

The Bank predicated India's recovery to 5.8 per cent in the coming financial year for India but "on the monetary policy stance remaining accommodative" and the assumption that "the stimulative fiscal and structural measures already taken will begin to pay off."

It also warned that sharper-than-expected slowdown in major external markets such as United States and Europe, would affect South Asia through trade, financial, and confidence channels, especially for countries with strong trade links to these economies."

The Bank said that the growth of advanced economies was 1.6 per cent last year and "is anticipated to slip to 1.4 per cent in 2020 in part due to continued softness in manufacturing."

In contrast the growth of emerging market and developing countries is expected to accelerate from 3.5 per cent last year to 4.1 per cent this year, the report said.

In South Asia, Bangladesh is estimated to have the highest growth rate of 7.2 per cent in the current fiscal year, although down from 8.1 per cent last fiscal year.

But its higher regional growth rates are coming off a lower base with a per capital gross domestic product of $1,698 compared to $2,010 for India.

Bangladesh is expected to grow by 7.3 per cent in the next financial year.

Pakistan's growth rate is estimated at only 2.4 per cent in the current fiscal year and is projected to rise to 3 per cent in the next, according to the Bank.

The Bank blamed monetary tightening in Pakistan for a sharp deceleration in fixed investment and a considerable softening in private consumption for the fall in growth rate from 3.3 per cent in the 2018-19 fiscal year.

Sri Lanka's growth rate was estimated to be 2.7 per cent last year and forecast to grow to 3.3 per cent this year.

Nepal grew by an estimated 6.4 per cent in the current fiscal year and will rise to 6.5 per cent in the next.

New Delhi, May 23: Carrying a sack full of belongings and a backpack on shoulders daily wager Mohammed Sunny and his friend Mohammed Danish are determined to reach home for Eid in Bihar's Araria district, facing all odds stacked up against them.

Shahjehanpur native Adesh Singh with his wife and three little children, who left their residence in south Delhi three days ago, are still scrambling to reach home, haggling with taxi drivers, to take them to their home town charging a reasonable fare.

This was among the many scenes of migrants' life on Friday at Delhi-Uttar Pradesh border touching Ghazipur in east Delhi who are struggling to make their way to their native places amid a COVID-19-induced lockdown across the country.

"We left home three days ago near Chhatarpur, we have walked and rested by roadsides, people gave us food on the way, so we survived. Now, we just want to reach home, we can't survive in Delhi," Manju Singh, wife of Adesh Singh told PTI as she waited at the UP Gate to get a taxi to cross the border on way to her home.

Their three children Alok (12), Ankesh (8) and Rupali (9), all wearing simple masks, were seen squatting on the roadside beside their luggage as their wearied parents, using cloths to cover their nose and mouth, bargained with taxi drivers to take them home, without charging much above the regular fare, saying they "did not have much cash left".

Police personnel could be seen asking many migrants who were marching on foot towards the inter-state border, to turn back.

Many did, but not Sunny and Danish, who feel if "Allah wants us to reach home, we surely will".

Both of them worked at a chemical plant in Delhi, and said, they have been "kicked out" after the lockdown was imposed, making their survival difficult in the national capital.

"We don't have money to pay rent now, or buy food, we have to go home now, what option do we have," Sunny said.

Danish alleged that the poor have been "abandoned" by the government and left in the lurch.

"The government has money to bring home Indians stranded abroad, but can't take home the Indians who have been toiling hard all these years. Is it fair to us," he asked.

"But, Inshallah, we will reach home if the Almighty wants us to, and will be joining our family for Eid, though it will hardly be a celebration this time. But, we want the comfort of being with our family at least," Sunny said.

Eid which marks the end of the holy Ramzan month, will be celebrated either on Sunday or Monday, depending on sighting of the moon.

Lakhs of migrant labourers stranded away from home in Delhi and other big cities have been attempting to reach home in the last two months, a large number of them walking on foot after they found no mode of conveyance.

The coronavirus death toll in Delhi has mounted to 208, while 660 fresh cases of COVID-19 infection reported on Friday, the highest single-day spike here, took the total in the city to 12,319.

Roshan Shrivastav (19), his nephew Shivam Shrivastav (19) and friend Prince Gupta (21), all hailing from Siwan in Bihar, were seen standing on a pavement after being told by the police to turn back from the barricade posted bear the Delhi-UP border.

"We live together in Baljeet Nagar in West Delhi, in a single room. I had come from Bihar after Holi, seeking a job, but then I got stuck in lockdown here without a job. Whatever money I had brought, and Rs 10,000 our parents had sent online, all has got exhausted in these three months," Roshan lamented.

"Our landlord has been very kind, and didn't even ask for any rent after the lockdown, but how long can we survive on charity. And, I don't like being dependent on someone, so we want to go home," he said.

Roshan said, he and Shivam, both also write and sing songs in Hindi and their native tongue Bhojpuri.

"We have written a few lines on lockdown crisis too -- 'Hum mazdooran ke ghar bhejwa da sarkar, nahin to ketna log hiyan par ho jai bimar' (please send us home or else many would fall sick here)," Shivam said, as he stood in scorching heat of May, carrying his leftover cash in pocket and hope in heart.