Rahul attacks PM on currency shortage, says country in grip of ‘note ban’ terror again

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.

New Delhi, Apr 17: Prime minister Narendra Modi on Thursday held talks with Jordan King Abdullah II and discussed the challenges posed to the world by the COVID-19 pandemic.

"The two leaders discussed the challenges posed to the world by the COVID-19 pandemic, and the steps being taken in their respective countries to limit its impact," an official statement said.

Prime Minister conveyed his greetings to Abdullah II and the people of Jordan for the upcoming Holy month of Ramadan which commences late next week.

The leaders agreed that their teams would remain in touch on issues related to COVID-19, as well as on other regional and global issues.

Washington, Jun 9: The defacement of Mahatma Gandhi's statue by unknown miscreants was a "disgrace", US President Donald Trump has said, days after it was vandalised with graffiti and spray painting during the nationwide protests against the custodial killing of African-American George Floyd.

The statue, which is across the road from the Indian Embassy, was vandalised on the intervening night of June 2 and 3, prompting the Indian embassy to register a complaint with the local law enforcement agencies.

The incident happened during the week of nationwide protests against the custodial killing of Floyd in Minneapolis on May 25.

"It was a disgrace," Trump made the brief comment at the White House on Monday when asked about the incident.

The Indian Embassy here has taken up the matter with the US Department of State for early investigation into the matter, as also with the Metropolitan Police and National Park Service.

It is working with the US Department of State, Metropolitan Police and National Park Service for expeditious restoration of the statue at the park.

The US president and First Lady Melania Trump, during their visit to India in February, had spent considerable time at the Gandhi Ashram in Ahmedabad. Prime Minister Narendra Modi had personally given them a tour of the historic place.

"The First Lady and I have just had a pleasure of visiting Mahatma Gandhi's Ashram, a few miles from here, where he launched the famous Salt March," Trump had said during his address at the Namaste Trump rally at the Motera Stadium in Ahmedabad on February 24. A day later, Trump and the first lady also laid a wreath at Raj Ghat in New Delhi.

Pictures of Trump and the first lady with Gandhi's spinning wheel during their visit to the Sabarmati Ashram in Ahmedabad are seen hanging on the walls of the White House.

Last week, top US lawmakers and the Trump Campaign condemned the vandalisation of the statue.

"Very disappointing," tweeted Kimberly Guilfoyle, advisor to Donald J Trump for President Inc. and National Chair of the Trump Victory Finance Committees.

North Carolina Senator Tom Tillis said, "It's disgraceful to see the defacing of the Gandhi statue" in Washington DC.

"Gandhi was a pioneer of peaceful protesting, demonstrating the great change it can bring. Rioting, looting and vandalising do not bring us together, he said.

Senator Marco Rubio said, "more evidence that violent radicals and run of the mill crazies have hijacked legitimate protests to create anarchy or for their own purposes."

Protests against the custodial killing of Floyd turned violent in the US and prestigious monuments were damaged. In Washington DC, protestors burnt a historic church and damaged monuments like the Lincoln Memorial.

US Ambassador to India Ken Juster apologised for the incident.

"So sorry to see the desecration of the Gandhi statue in Wash, DC. Please accept our sincere apologies," he said.

"Appalled as well by the horrific death of George Floyd and the awful violence and vandalism. We stand against prejudice & discrimination of any type. We will recover and be better," he said in a tweet last week.

One of the few statues of a foreign leader on a federal land in Washington DC, the statue of Gandhi was dedicated by former prime minister Atal Bihari Vajpayee in the presence of the then US president Bill Clinton on September 16, 2000, during his state visit to the US.