Economic outlook cloudy in FY20: RBI annual report

Agencies
August 30, 2019

Mumbai, Aug 30: The Reserve Bank of India (RBI) said on Thursday that the overall economic outlook of the country appeared clouded for 2019-20 and advised to prioritise the revival of consumption and private investment and structural reforms.

"Overall, the outlook appears clouded as the Indian economy begins its course through 2019-20," the RBI said in its annual report released on Thursday.

The central bank also expressed concern over falling rural demand amidst some surge in indices.

"Rural demand, however, was affected by moderation in agricultural growth as reflected in tractors and two-wheelers sales. Indicators of urban demand revealed a mixed picture in contrast. Air passenger traffic recorded its lowest growth in the last five years.

"Passenger vehicles sales were the lowest in five years on account of increase in insurance costs, volatile fuel prices and lack of financing options due to the liquidity stress in the non-banking sector. The production of consumer non-durables slumped to its lowest level in the past three years," the report highlighted.

The central bank in its review said that external demand operated as a drag for the second successive year while deficit south-west monsoon and depleted reservoirs dented the performance of the agriculture sector.

The rate of gross domestic savings had increased marginally to 30.1 per cent of gross national disposable income (GNDI) in 2017-18 from declines in the previous two years.

The household financial savings -- the most important source of funds -- had increased by 0.3 percentage points of GNDI, though it had remained much lower than 7.3 per cent during 2011-16.

The rate of gross domestic investment in the Indian economy, measured by the ratio of gross capital formation (GCF) to GDP at current prices, had risen to a peak of 39.8 per cent in 2010-11 before a prolonged slowdown set in, taking it down to 30.9 per cent in 2016-17.

A modest recovery was seen in the following year. Although data on gross domestic investment are not yet available for 2018-19, movement in its constituents suggests that the uptick could not be sustained.

Growth in fixed investment collapsed to a 14-quarter low in Q4 of 2018-19 as production of capital goods registered a sharp contraction while imports nosedived in a coincident manner.

However, the industrial sector posted resilient growth, mainly driven by manufacturing in the first half, while the momentum in construction and financial services sustained the healthy growth of the overall services sector, the RBI said.

"Going forward, priority should be accorded to revive consumption and private investment while continuing with structural reforms," the RBI said.

On job creation, the RBI said that official estimates suggest more regularisation of employment in 2017-18 and the various initiatives undertaken by the government are expected to create avenues for employment.

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News Network
February 13,2020

Guwahati, Feb 13: Hours after Assam's updated citizenship data disappeared from the website 'nrcassam.nic.in', an FIR was filed against a former NRC official for allegedly failing to submit the password to the sensitive document before quitting her job.

Talking to news agency on Thursday, NRC state coordinator Hitesh Dev Sarma said the complaint against former NRC project officer was filed under Official Secrets Act in Paltan Bazar police station here, as she "did not provide the password to the document, despite written reminders".

"She failed to surrender the password even after tendering her resignation on November 11 last year. She was a contractual employee and no longer authorised to hold the password, after quitting her job. An FIR has been filed against the former NRC project officer on Wednesday for violating the Official Secrets Act," he said.

Sarma also stated that the NRC office had written to her on several occasions for submitting the password, but did not get any response.

"We knew (she had resigned) and, therefore, sent several letters to her for handing over the password. But as she did not respond all these months, we filed a complaint against her yesterday for violating the Official Secrets Act.

"We must know if she has tampered with the sensitive information, after resigning," he added. The NRC state coordinator, however, refuted allegations of "malafide intent" involved in the matter.

"...this (cloud service provided by IT major Wipro) was not renewed by the earlier coordinator. So, the data went offline from December 15 last year. I assumed charge only on December 24," Sarma, who had gone on leave for a weeks after being appointed as the NRC state coordinator, clarified.

He also said that the state coordination committee had discussed the issue in its meeting on January 30 and wrote to Wipro during the first week of February.

"Once Wipro makes the data live, it will be available to the public. We hope that people will be able to access it in the next 2-3 days," Sarma claimed.

Reacting to the development, Wipro had said: "The IT Services Contract was not renewed by the authorities upon its expiry in October, 2019. However, as a gesture of goodwill, the company continued to pay the hosting service fee until January-end, 2020."

In another FIR filed with state criminal investigation department on Wednesday, NGO Assam Public Works (APW) alleged that former NRC Assam coordinator Prateek Hajela tampered with the final NRC list - published on August 31, 2019.

APW member Rajib Deka, in his complaint, accused Hajela of disobeying orders and directions of the Supreme Court, forgery of public register and committed offences under cyber laws for altering or changing public records by misusing his powers and position.

The NGO also said that after publication of the final list, several social networks and sections of the media had reported anomalies, insisting that many 'doubtful' persons were able to insert their names in the final list.

The Centre on Wednesday asserted that NRC data in Assam was safe even though some technical issues have been detected, which would be resolved soon.

Senior journalist-cum-RTI activist Saket Gokhale had sent an application to the NIC, the IT wing of the government, seeking a copy of the contract with Wipro.

"The Assam NRC data suddenly vanishing from the website (& the lack of data security) is incredibly shady. I've filed an RTI with the NIC specifically asking about details of the contract with Wipro, name of the cloud service provider, & all contracts signed for hosting this," he tweeted, while attaching a copy of the RTI application.

Leader of the Opposition in Assam Assembly and Congress leader Debabrata Saikia has also written to the Registrar General of India, requesting him to look into the fiasco urgently.

"It is a mystery as to why the online data should vanish all of a sudden, especially as the process to file appeals was yet to begin, all because of the go-slow attitude adopted by the NRC Authority. There is, therefore, ample scope to suspect that disappearance of online data is a malafide act," he had insisted.

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News Network
April 21,2020

New Delhi, Apr 21: Tablighi Jamaat leader Maulana Saad Kandhalvi, who has been booked by the Delhi Police for holding a religious congregation here during the lockdown, on Monday urged the followers of the organisation to pray at home in the month of Ramzan.

"I request all, both in India and abroad, to strictly follow the guidelines and instructions of the local or national governments and till the time restrictions are in place and please observe prayers at home. And even in this, we should not invite people from outside," he said in a statement.

Ramzan begins later this week.

While addressing an online briefing on Sunday, Chief Minister Arvind Kejriwal cited the Tablighi Jamaat congregation last month, a major hotspot, and the large inflow of travellers from other countries to Delhi as the reasons for the spread of the virus, and said the city was "fighting a difficult battle".

The Delhi Police crime branch, had on March 31, lodged an FIR against seven people, including the cleric, on a complaint by the Station House Officer of Nizamuddin police station for holding the congregation in alleged violation of the orders against large gatherings to contain the spread of coronavirus.

Later, the Indian Penal Code Section 304 (culpable homicide not amounting to murder) was added to the FIR.

The cleric is wanted by the Delhi Police and he responded twice to them. He is currently under home quarantine.

In an audio message released earlier this month, Kandhalvi had said he was exercising self-quarantine after several hundreds who visited the congregation at Nizamudddin Markaz tested positive for coronavirus.

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News Network
April 23,2020

Apr 23: Mukesh Ambani is again Asia's richest person after a deal with Mark Zuckerberg's Facebook Inc. sent his conglomerate's stock surging.

Ambani's fortune rose about $4.7 billion to $49.2 billion on Wednesday, after Reliance Industries Ltd. gained 10%. The jump put Ambani about $3.2 billion ahead of China's Jack Ma, according to the Bloomberg Billionaires Index. The ranking updates after the close of each trading day in the U.S.

Facebook Inc. will invest $5.7 billion in the U.S. social-networking giant's biggest deal since the 2014 purchase of WhatsApp as it seeks a broader foothold in its biggest global market. The U.S. company will buy about 10% of Jio Platforms, which brings together digital apps and a wireless platform under one umbrella, the Mumbai-based company said in a statement Wednesday.

Before Wednesday, Ambani -- who owns the world's largest oil refinery -- had declined by $14 billion on the index in 2020, the biggest dollar fall of anyone in Asia. Alibaba Group Holding Ltd.'s Ma, whose foundation this week donated 100 million masks to the World Health Organization to fight the Covid-19 pandemic, had lost almost $1 billion through Tuesday.

"At the core of our partnership is the commitment that Mark Zuckerberg, founder of Facebook, and I share for the all-around digital transformation of India," Ambani said in a web video posted on Jio's Facebook page, adding that Facebook's brands have become household names in India. "WhatsApp in particular, has entered our people's daily vocabulary in all the 23 official languages of India."

The partnership with Jio would allow Zuckerberg to step up his expansion in a country that is rapidly embracing online payment and e-commerce as more people get smartphones. Jio Infocomm quickly moved into a position of dominance by offering free plans and undercutting wireless market rivals.

With its half-billion internet users, the South Asian country is a key market for the world's largest technology companies, including Amazon.com Inc., Apple Inc., Microsoft Corp. and Alphabet Inc.'s Google. In India, Facebook has about 250 million users, while WhatsApp has more than 400 million.

That should help Jio bolster its reach, according to James Crabtree, author of 'The Billionaire Raj,' a book on the country's wealthiest people. But the transaction also shows the extent of Ambani's own influence, he said.

"This deal clearly shows that if you want to play big in Indian tech, you need to play nice with Mukesh Ambani."

Ambani's fortune rose about $4.7 billion to $49.2 billion on Wednesday, after Reliance Industries Ltd. gained 10%. The jump put Ambani about $3.2 billion ahead of China's Jack Ma, according to the Bloomberg Billionaires Index. The ranking updates after the close of each trading day in the U.S.

Facebook Inc. will invest $5.7 billion in the U.S. social-networking giant's biggest deal since the 2014 purchase of WhatsApp as it seeks a broader foothold in its biggest global market. The U.S. company will buy about 10% of Jio Platforms, which brings together digital apps and a wireless platform under one umbrella, the Mumbai-based company said in a statement Wednesday.

Before Wednesday, Ambani -- who owns the world's largest oil refinery -- had declined by $14 billion on the index in 2020, the biggest dollar fall of anyone in Asia. Alibaba Group Holding Ltd.'s Ma, whose foundation this week donated 100 million masks to the World Health Organization to fight the Covid-19 pandemic, had lost almost $1 billion through Tuesday.

"At the core of our partnership is the commitment that Mark Zuckerberg, founder of Facebook, and I share for the all-around digital transformation of India," Ambani said in a web video posted on Jio's Facebook page, adding that Facebook's brands have become household names in India. "WhatsApp in particular, has entered our people's daily vocabulary in all the 23 official languages of India."

The partnership with Jio would allow Zuckerberg to step up his expansion in a country that is rapidly embracing online payment and e-commerce as more people get smartphones. Jio Infocomm quickly moved into a position of dominance by offering free plans and undercutting wireless market rivals.

With its half-billion internet users, the South Asian country is a key market for the world's largest technology companies, including Amazon.com Inc., Apple Inc., Microsoft Corp. and Alphabet Inc.'s Google. In India, Facebook has about 250 million users, while WhatsApp has more than 400 million.

That should help Jio bolster its reach, according to James Crabtree, author of 'The Billionaire Raj,' a book on the country's wealthiest people. But the transaction also shows the extent of Ambani's own influence, he said.

"This deal clearly shows that if you want to play big in Indian tech, you need to play nice with Mukesh Ambani."

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