Kerala will continue to eat beef; BJP has no problem with it: Modi govt’s minister

New Delhi, Feb 29: India’s economy expanded at its slowest pace in more than six years in the last three months of 2019, with analysts predicting further deceleration as the global Covid 19 coronavirus outbreak stifles growth in Asia’s third-largest economy.

The gross domestic product (GDP) data released yesterday showed government spending, private investment and exports slowing down, while there is a slight upturn in consumer spending and improvement in rural demand lent support.

The quarterly figure of 4.7% growth matched the consensus in a Reuters poll of analysts but was below a revised - and greatly increased - 5.1% rate for the previous quarter.

The central bank has warned that downside risks to global growth have increased as a result of the coronavirus epidemic, the full effects of which are still unfolding.

Prime minister Narendra Modi’s government has taken several steps to bolster economic growth, including a privatisation push and increased state spending, after cutting corporate tax rates last September.

In its annual budget presented this month, the government estimated that annual economic growth in the financial year to March 31 would be 5%, its lowest for last 11 years.

Modi’s government is targeting a slight recovery in growth to 6% for 2020/21, still far below the level needed to generate jobs for millions of young Indians entering the labour market each month.

The annual GDP figure for the September quarter was ramped up from an earlier estimate of 4.5%, while the April-June reading was similarly lifted to 5.6% from 5%, data released by the Ministry of Statistics showed on Friday.

Capital Investment Drop

In the December quarter, private investment grew 5.9%, up from 5.6% in the previous quarter, while government spending rose by 11.8%, against 13.2% in the previous three months.

However, corporate capital investment contracted by 5.2% after a 4.1% decline in the previous quarter, indicating that interest rate cuts by the central bank have failed to encourage new investment. Manufacturing, meanwhile, contracted by 0.2%.

“It appears growth slowdown is not just cyclical but more entrenched with consumption secularly joining the slowdown bandwagon even as the investment story continues to languish,” said Madhavi Arora of Edelweiss Securities in Mumbai.

Many economists said that the government stimulus could take four to six quarters of time before lifting the economy and the impact of those efforts could be outweighed by the global fallout from the coronavirus epidemic that began in China.

“The coronavirus remains the critical risk as India depends on China for both demand and supply of inputs,” said Abheek Barua, chief economist at HDFC Bank.

Indian shares sank on Friday for a sixth session running, capping their worst week in more than a decade. The NSE Nifty 50 index shed 7.3% over the week, while the Sensex dropped 6.8%, the worst weekly declines since the 2008-09 financial crisis.

Separately, India’s infrastructure output rose 2.2% year on year in January, data showed on Friday.

A spike in inflation to a more than 5-1/2 year high of 7.59% in January is expected to make the RBI hold off from further cuts to interest rates for now, while keeping its monetary stance accommodative.

Bengaluru, Mar 24: Bengaluru police registered an FIR against a 23 year-old woman who, while in home quarantine, visited supermarket despite having clear instructions to stay at home.

The Vijayanagar police said that the woman, a resident of Vijayanagar, had returned to the City on March 22 after a visit to Dubai."The city police had visited her house and stamped her for home quarantine and instructed her to stay at home but she visited Reliance Fresh on Monday.

We received information about it and the footage. Following this, we registered an FIR against her under section 269 (negligent act likely to spread infection of disease dangerous to life). We traced her and warned her to stay at home. We are also consulting senior officers and health officers on whether we have to send her to the government quarantine Centre or not,"the police said.

Commissioner of Police Bhaskar Rao strictly warned the people who are home quarantined to stay at home in public interest. If they were found in public places they will be picked up, arrested and sent to government quarantine."Please log in to get detailed story.

Bengaluru, Feb 9: The Karnataka Health and Family Welfare Services Department has kept 138 persons across the state under observation in the wake of novel coronavirus (nCov) scare, a health official said on Saturday.

"We are observing 138 people across the state, including in Bengaluru," the department's Communicable Diseases Wing Joint Director Prakash Kumar told news agency.

Though no coronavirus-positive case has been reported from Karnataka so far, four persons have been admitted in a state hospital under medical observation, Kumar confirmed.

Of the 104 samples sent for testing from the state, 85 have, so far, been declared negative. As many as 130 persons in the state were kept under home-isolation observation.

Four Karnataka districts bordering Kerala — Kodagu, Mangluru, Chamarajanagar and Mysuru — continue to be under surveillance after three positive coronavirus cases were reported in Kerala.

On Saturday, it was reported that three persons from Udupi were isolated at the Ajjarkad Government Hospital. Two of them had travelled to China while the other had returned to Udupi from Japan.

From January 20 till Saturday, 14,153 passengers underwent thermal screening at the Kempegowda International Airport, including three who had a history of visiting China’s Wuhan, the epicenter of the nCoV outbreak.

The '104 Arogya Sahayavani' call centre, which people can call for guidance on coronavirus, has clocked 1,792 calls so far.

"In case people with recent travel history to China and other affected countries develop any symptoms, they are requested to call 104 or health authorities and provide all necessary details in order to take necessary measures and are requested to be quarantined at home," reiterated the department.

Three confirmed cases of coronavirus were earlier reported in Kerala and over 722 deaths were confirmed around the world, mostly in mainland China.