Important for India to keep fiscal deficit in check: IMF chief economist

Agencies
October 16, 2019

Washington, Oct 16:  It is important for India to keep fiscal deficit in check, even though its revenue projections look optimistic, Chief Economist of the International Monetary Fund or IMF Gita Gopinath has said.

As against India's real growth rate of 6.8 per cent in 2018, the IMF in its latest World Economic Outlook, released on Tuesday, projected the country's growth rate at 6.1 per cent in 2019 and noted that the Indian economy is expected to pick up at 7 per cent in 2020.

In India's case, there has been a negative impact on growth that has come from financial vulnerabilities and the non-bank financial sector, and the impact on consumer borrowing and borrowing of small and medium enterprises, Gopinath said.

The prominent Indian-American economist was speaking to reporters ahead of the annual meeting of the IMF and the World Bank.

On the projections in the World Economic Outlook report, Gopinath said appropriate steps have been taken.

Appreciative of the recent steps being taken by Finance Minister Nirmala Sitharaman to address the economic challenges being faced by India, she said there is still a lot more that needs to be done.

Prominent among these include cleaning up of balance sheets of regular commercial banks, Gopinath said.

In our projections we have that India will recover to 7 per cent growth in 2020. And the premise is that these particular bottlenecks will clear up, she said.

On the fiscal side for India, there have been some recent measures, including the corporate tax cut. There has not been an announcement about how that will be offset to revenues at this point, Gopinath said.

It looks optimistic, the revenue projections going forward. But it is important for India to keep the fiscal deficit in check, she said.

Responding to a question, Deputy Director in the IMF Research Department Gian Maria Milesi-Ferretti said the overall growth remains very strong in India by the standards of the world economy.

Even though it's lower than the very high standards at which the world was accustomed to looking at India, he said.

India's growth rate above 6 per cent is still notable and extremely important in a country that has such a large population. We have a forecast for further pick up the next year, also helped by tax cuts on the corporate trunk, Milesi-Ferretti said.

At the same time, there are many macroeconomic challenges the deputy director said as he emphasised the need to keep fiscal deficit under control.

Of course, India and Pakistan are not immune to global geopolitical tensions and to trade tensions that can take a toll on their manufacturing activity and demand for their exports, said the IMF official when asked about the economic impact of India-Pakistan tensions.

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News Network
January 30,2020

Wayanad, Jan 30: Congress leader Rahul Gandhi on Thursday compared Mahatma Gandhi assassin Nathuram Godse with Prime Minister Narendra Modi, saying both believed in the same ideology.

Gandhi, at an anti-CAA rally here, launched a scathing attack on Modi and said he was making Indians to prove that they are Indians.

Addressing participants at "Save the Constitution" march at Kalpetta in Wayanad, his Lok Sabha constituency on Martyr's Day, Gandhi said there was no difference between Godse and Modi.

"Today, an ignorant man is trying to challenge Gandhi's ideology. He is creating an atmosphere of hatred. The ideology is same. Nathuram Godse and Narendra Modi, they believe in the same ideology. There is no difference except that Modi does not have the guts to say he believes in the ideology of Godse," the Wayanad MP said.

Attacking the Prime Minister on the new Citizenship Law, Gandhi questioned Modi and asked who was he to ask Indians to prove that they were Indians.

"Indians are being made to prove that they are Indians. Who is Narendra Modi to decide who is an Indian. Who gave Modi the licence to ask for my Indianness? I know I am an Indian and I don't have to prove it to anyone. Likewise, 1.4 billion Indians do not have to prove that they are Indians," he said.

The Congress leader led the march here as part of efforts to intensify the party's protests against CAA in the state.

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News Network
June 11,2020

Jun 11: The total death toll in the US from the novel coronavirus pandemic could hit the grim figure of 200,000 by September and expecting a dramatic decrease in COVID-19 cases in the country will be a "wishful thinking , an eminent Indian-American professor has warned.

Ashish Jha, the head of Harvard's Global Health Institute, told CNN on Wednesday that he is not trying to scare people to stay at home rather urged everyone to wear masks, adhere to the social distancing rules and called for ramping up testing and tracing infrastructure.

Anybody who's expecting a dramatic decrease in cases is almost surely engaging in wishful thinking. And if it (COVID numbers) stays just flat for the next three months, we're going to hit 200,000 deaths sometime in September and that is just awful, Jha said.

Jha said the 200,000 death toll is not just a guess . Currently 800-1000 people are dying daily in America from the virus and all data suggest that the situation is going to get worse.

We're gonna have increases, but even if we assume that it's going to be flat all summer, that nothing is going to get worse... even if we pick that low number of 800 a day, that is 25,000 (deaths) a month in three and a half months. We're going to add another 88,000 people and we will hit 200,000 sometime in September, Jha said.

The United States is by far the hardest-hit country in the global pandemic, in terms of both confirmed infections and deaths.

According to data by the Johns Hopkins University, the number of coronavirus cases in the US currently is nearly two million and about 112,900 people have died in the country, the most in the world.

When asked about an improvement in states like New York, which had been the epicenter of the COVID19 pandemic in the US, Jha said while coronavirus cases are declining in New York, New Jersey, Connecticut and Massachusetts, the numbers are increasing in states such as Arizona, Florida, Texas, North and South Carolina while the country as a whole is pretty flat.

He said, people should take measures as that will help suppress the virus and ensure people could get back outside safely but he voiced concern that this was not the situation in reality.

We're not doing that and so we're going to unfortunately have another 25,000 deaths a month until September, and then it'll keep going. It's not going to magically disappear. We've got a turn around. This is not the future I want, he said.

Jha said he had expected the situation to improve in the summer months but on the contrary the numbers have continued to rise even in the warm weather.

Summer was supposed to be our better months - warmer weather, people outside, a little less transmission. This is not the time (summer) I was expecting a lot more cases. We're seeing a lot more cases, especially in states like Arizona where the numbers look really scary, he said.

Jha added that he was hopeful that maybe the summer months would give us more of a break. I think I may have been too optimistic on that.

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News Network
March 20,2020

New Delhi, Mar 20: The four men convicted of the gang rape and murder of a Delhi woman on December 16, 2012 were hanged in the darkness of pre-dawn on Friday, ending a horrific chapter in India's long history of sexual assault that had seared the nation's soul. Mukesh Singh (32), Pawan Gupta (25), Vinay Sharma (26) and Akshay Kumar Singh (31) were executed at 5.30 am for the savage assault in an empty moving bus on the 23-year-old physiotherapy intern who came to be known the world over as Nirbhaya, the fearless one.

This is the first time that four men have been hanged together in Tihar Jail, South Asia's largest prison complex that houses more than 16,000 inmates. The executions were carried out after the men exhausted every possible legal avenue to escape the gallows. Their desperate attempts only postponed the inevitable by less than two months after the first date of execution was set for January 22.

They were hanged at 5.30 am, Director General of Prison Sandeep Goel said.

After raping and brutalising the woman, the men, one of whom was a juvenile at the time, dumped her on the road and left for dead on the cold winter night. Her friend who was with her was also severely beaten and thrown out along with her. She was so severely violated that her insides were spilling out when she was taken to hospital. She died in a Singapore hospital after battling for her life for a fortnight.

Six people, including the four convicts and the juvenile, were named as accused.

While Ram Singh allegedly committed suicide in the Tihar Jail days after the trial began in the case, the juvenile was released in 2015 after spending three years in a correctional home.

The road to the gallows was a long and circuitous one, going through the lower courts, the High Court, the Supreme Court and the president's office before going back to the Supreme Court that heard and rejected various curative petitions.

The death warrants were deferred by a court thrice on the grounds that the convicts had not exhausted all their legal remedies and that the mercy petition of one or the other was before the president.

On March 5, a trial court issued fresh death warrants for March 20 at 5.30 am as the final date for the execution.

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