RBI sees economy clipping at 7.3% in current fiscal

Agencies
July 1, 2017

Mumbai, Jul 1: The Reserve Bank of India (RBI) on Friday said that the ongoing accelerated reform initiatives like GST and continuing political stability will push the economic growth scale to 7.3% in terms of GVA in the current fiscal year.RBI

The Financial Stability Report (FSR) 2017 bases its optimism to the lower fiscal deficit at 3.2% for this year, down from 3.5% in 2016-17, increasing public capex and support to poorer households, small businesses and the rural sector, to oil the economy. “Going forward, reforms in FDI and real estate sector, implementation of GST, and revival in external demand are likely to contribute to a better growth outlook. GVA growth is expected to be higher at 7.3% in 2017-18,” the FSR said.

On inflation, it paints a rosy picture and projects CPI inflation to be in the range of 2-3.5% in the first half of the year and 3.5-4.5% in the second half.

Retail inflation, excluding food and fuel that remained sticky during H2 of FY17 at around 4.9%, dipped to 4.3% in April and 4.2% in May 2017, largely reflecting the impact of decline in global crude oil prices on transport and communication and moderate price pressures in services.

While noting that the fiscal conditions of the Centre is on the mend, it expressedconcerns on that of the states.

“While the Centre’s commitment to returning to rule based fiscal discipline is commendable, there are a few issues that need attention. One is the deterioration in the states’ fiscal conditions and the other is increased leverage of public sector undertakings.

“In the case of states, there is an increasing tendency to borrow outside the budget through parastatals as these are non-transparent in the sense that they do not add to outstanding debt even though their servicing burden falls on the budget,” the report warned.

Apex bank warns of more NPA pain

The RBI has warned that asset quality of banks continued to remain weak with gross non-performing loans rising to 9.6% in the year to March 2017, and may rise to 10.2% by next March, reports PTI from Mumbai.

Gross non-performing assets stood at 9.2% in September 2016. The net non-performing advances (NNPA) ratio marginally increased to 5.5% in March 2017, from 5.4% in September 2016, the RBI said in its FSR released here.

The stressed advances ratio declined from 12.3% to 12% due to fall in restructured standard advances, the report added.

According to a macro-stress test for credit risks, banks gross NPAs may rise to 10.2%.

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News Network
January 10,2020

New Delhi, Jan 10: An IPS officer's thumb was bitten by a woman protester when he was pushing back agitators, who were trying to march towards the Rashtrapati Bhawan here on Thursday, police sources said.

The protesters had gathered after a call was given by JNU Students' Union president Aishe Ghosh to march towards President's House to demand the removal of University's Vice Chancellor, M Jagadesh Kumar.

Ingit Pratap Singh, a 2011 batch officer, who is currently posted as the additional deputy commissioner of the southwest district, was injured in the attack.

According to sources, Singh was trying to pull a male protester when the woman, in a bid to shield her friend, bit Singh's left thumb.

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News Network
March 18,2020

New Delhi, Mar 18: As many as 276 Indians have been infected with coronavirus abroad, including 255 in Iran, 12 in UAE and five in Italy, the government informed the Lok Sabha on Wednesday.

In a written reply to a question in the Lok Sabha, Minister of State for External Affairs V Muraleedharan said the total number of Indians infected by coronavirus is 276 — 255 in Iran, 12 in UAE, five in Italy, and one each in Hong Kong, Kuwait, Rwanda and Sri Lanka.

A fourth batch of 53 Indians returned to India from Iran on Monday, taking the total number of people evacuated from the coronavirus-hit country to 389.

Iran is one of the worst-affected countries by the coronavirus outbreak and the government has been working to bring back Indians stranded there. Over 700 people have died from the disease in Iran and nearly 14,000 cases detected.

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News Network
April 15,2020

New Delhi, Apr 15: CPI-M leader Sitaram Yechury has sought a substantial increase in relief spending of the Central government in the fight against coronavirus, saying that there should be cash transfer of Rs 7,500 to families not paying income tax and distribution of free foodgrains to all needy.

In an article in the forthcoming issue of the party's mouthpiece -- People's Democracy -- Yechury said that India ranks among the countries that are testing the least for the coronavirus and testing should be increased rapidly.

Yechury said the financial stimulus package should be raised from the current 0.8 per cent to at least 5 per cent of GDP and States should be provided liberal funding.

"We must ensure that there are no starvation deaths that occur in our country. It is, therefore, imperative that the government must immediately implement a Rs 7,500 ex gratia cash transfer to all non-income tax-paying families and resort to universal distribution of free foodgrains to all needy people," Yechury said.

He said all MGNREGA workers should be paid wages irrespective of work and employers should be assisted financially to protect workers from job losses and wage cuts and arrangement should be made for the return of migrant workers to their homes.

"Testing is of crucial importance to identify the clusters where the pandemic is spreading in order to isolate and insulate them to contain the community spread. Inadequate testing does not provide us with such information. It is dangerous both for the inability to contain the spread and to identify the critical areas," the article said.

It said that till April 9, India's record of testing was 0.092 per thousand, while in Germany it was 15.96, Italy 14.43, Australia 12.99, Denmark 10.73 and Canada 9.99. "Unless our testing rate increases substantially, our strength to combat the pandemic will not grow," the article said.

Yechury said that the first case in India was reported on January 30 and "no substantive measures were taken despite this for seven long weeks" until the declaration of the lockdown on March 24.

"As far as the lockdown is concerned, many countries in the world moved with greater urgency - China locked down Wuhan on January 23, the whole of Italy was locked down on March 10, USA declared a national emergency on March 13, Spain on March 14, France on March 17 and UK on March 23," he said.

Yechury said the people were looking forward to the Prime Minister's address to the nation on the last day of the three-week countrywide lockdown.

"These three weeks have thrown up many experiences that need to be addressed urgently in order, both, to strengthen our fight against the COVID-19 pandemic and to protect the lives and survival of crores of our fellow citizens. On none of these issues of vital importance did the Prime Minister have anything substantial to say," he said.

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