Mukesh Ambani loses Asia wealth crown to Jack Ma in $5.8 billion rout

May 18: Goldman Sachs expects India will experience its deepest recession ever after a poor run of data underscored the damaging economic impact of lockdowns in the world’s second-most populous nation.

Gross domestic product will contract by an annualized 45% in the second quarter from the prior three months, compared with Goldman’s previous forecast of a 20% slump. A stronger rebound of 20% is now seen for the third quarter, while projections for the fourth quarter and first of next year are unchanged at 14% and 6.5%.

Those estimates imply that real GDP will fall by 5% in the 2021 fiscal year, which would be deeper than any other recession India has ever experienced, Goldman economists Prachi Mishra and Andrew Tilton wrote in a note dated May 17.

India’s government has extended its nationwide lockdown until May 31, while further easing restrictions in certain sectors to boost economic activity, as coronavirus cases escalate across the country. The announcement followed Finance Minister Nirmala Sitharaman’s fifth briefing in as many days, in which she outlined details of the country’s $265 billion virus rescue package, which is equivalent to 10% of India’s GDP.

 “There have been a series of structural reform announcements across several sectors over the past few days,” the Goldman economists wrote. “These reforms are more medium-term in nature, and we, therefore, do not expect these to have an immediate impact on reviving growth. We will continue to monitor their implementation to gauge their effect on the medium-term outlook.”

Infections are surging across the South Asian nation of 1.3 billion people, with more than 91,300 infections, including 2,897 deaths as of Sunday, according to data from Johns Hopkins University.

Prime Minister Narendra Modi, who had maintained silence on Chinese aggression and massacre of Indian in eastern Ladakh, now issued a statement saying ‘India wants peace’. He added that India is capable of giving a befitting reply if provoked. 

The prime minister started his meeting with chief ministers on the Covid-19 with a two-minute silence as a tribute to the 20 soldiers who were killed in action in Galwan Valley this week. As he spoke, it became clear that the message was aimed not just at reassuring the nation but also delivering a sharp message to Beijing.

“I would like to assure the nation that the sacrifice of our jawans will not be in vain. For us, the unity and sovereignty of the country is the most important,” PM Modi said. Home minister Amit Shah and defence minister Rajnath Singh were also present in the meeting.

Over twenty Indian soldiers were killed in the violent face-off which took place in Eastern Ladakh on Monday. The troops fought each other with fists and rocks. After the clash, the two sides “disengaged” from the area where the fighting happened, the Indian army statement said. A news agency quoting sources said four Indian soldiers are in critical condition after the face-off.

Defence minister Rajnath Singh mourned the death of 20 Indian soldiers. “The loss of soldiers in Galwan is deeply disturbing and painful. Our soldiers displayed exemplary courage and valour in the line of duty and sacrificed their lives in the highest traditions of the Indian Army,” he said in a statement.

“The Nation will never forget their bravery and sacrifice. My heart goes out to the families of the fallen soldiers. The nation stand shoulder to shoulder with them in this difficult hour. We are proud of the bravery and courage of India’s bravehearts,” the minister further said in the statement posted on Twitter.

These are the first Indian casualties in a border skirmish with PLA since October 1975 when Chinese troops ambushed an Indian patrol in Arunachal Pradesh’s Tulung La sector and shot four soldiers dead.

Paris, Jun 28: More than 10 million cases of the new coronavirus have been officially declared around the world, half of them in Europe and the United States, according to an AFP tally on Sunday based on official sources.

At least 10,003,942 infections, including 498,779 deaths, have been registered globally.

Europe remains the hardest hit continent with 2,637,546 cases including 195,975 fatalities, while the United States has 2,510,323 infections including 125,539 deaths.

The rate of infections worldwide continues to rise, with one million new cases recorded in just six days.

The tallies, using data collected by AFP from national authorities and information from the World Health Organization (WHO), probably reflect only a fraction of the actual number of infections.

Many countries are testing only symptomatic or the most serious cases and some do not have the capacity to carry out widescale testing.