March-quarter GDP growth at 5.3 pct, weakest in 9 years

May 31, 2012

gdp-reuters

New Delhi, May 31: India's annual economic growth slumped in the January-March quarter to a nine-year low of 5.3 percent as the manufacturing sector contracted and a fall in the rupee to a record low suggests the economy remains under pressure in the current quarter.

The growth rate was much lower than expected and was even below the lowest forecast in a Reuters poll that had produced a median of 6.1 percent from predictions ranging between 5.5 percent and 7.3 percent.

"The data highlights the unusual degree of weakening of the country's economy, likely driven by poor investment and widening trade gap," said Dariusz Kowalczyk, an economist at Credit Agricole CIB in Hong Kong.

"The data also poses a dilemma for policymakers, as they have no fiscal room to stimulate growth, while monetary easing scope is very narrow, at least for now, due to rebounding and high inflation."

The growth rate in the final quarter of India's fiscal year was the lowest since 3.6 percent in the January-March quarter of 2003, Thomson Reuters data shows.

The data showed that the manufacturing sector shrank 0.3 percent in the quarter compared with a year earlier. The farm sector grew 1.7 percent.

Gross domestic product rose 6.5 percent in the fiscal year to the end of March 2012, the lowest growth rate since 4.0 percent in 2002/03 and a sharp slowdown from the previous year's 8.5 percent.

The impact of the euro zone debt crisis, a lack of economic reforms and high interest rates dragged on India's growth throughout last year.

Before Thursday's data, private economists had cut forecasts for Asia's third-largest economy to between 6 percent and 6.5 percent for the fiscal year to March 2013. The government forecasts close to 7.5 percent.

The yield on India's benchmark 10-year government bonds are down 11 basis points so far on Thursday.

The BSE Sensex extended its declines after the data to 1.3 percent on the day.

Anubhuti Sahay, an economist at Standard Chartered Bank in Mumbai said the data was "shocking".

"A rate cut is a given now," Sahay said.

The rupee fell on Thursday to a record low beyond 56.50 per dollar. Its slide of 14 percent from its 2012 high adds to inflation concerns in the country.

The rupee has fallen in the face of global risk aversion over the euro zone debt crisis. But investors have raised a number of India-specific red flags as well, including a swelling current account, high government spending on subsidies such as oil and a rash of unpredictable regulations and tax as the coalition struggles to push through economic reforms.

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News Network
April 4,2020

Aurangabad, Apr 4: A marriage was solemnised on a video call, the unique method which was adopted due to coronavirus lockdown.

A Muslim man named Mohammad Minhajudd, based in Aurangabad exchanged marriage vows with a Muslim woman based in Beed via video call on Friday.

The entire country is witnessing a 21-day lockdown due to which there is a limitation on the movement of people from one place to another and gatherings have been banned to prevent the spread of the coronavirus that has wreaked havoc across the globe.

The marriage halls are also closed during the lockdown period.

The bridegroom's father Mohammad Gayaz said that the marriage was fixed between the two persons six months ago when there was no fear about coronavirus. We got the elders of the family assembled at our home and conducted the marriage on phone.

Mufti Anis ur Rehman, the Qazi who performed the rituals for the marriage, said that both the families are happy as the marriage got conducted with the minimal cost incurred and the ceremony was a simple one. 

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Agencies
June 21,2020

New Delhi, June 21: Diesel prices rise to record high after 60 paise hike in rates, petrol up 35 paise; rates up by Rs 8.88 and Rs 7.97 in 15 days.

Petrol price in Delhi was hiked to Rs 79.23 per litre from Rs 78.88, while diesel rates were increased to Rs 78.27 a litre from Rs 77.67, according to a price notification of state oil marketing companies. 

In Bengaluru, petrol will be costlier by 37 paise at Rs 81.81 per litre, while diesel will cost 57 paise more per litre at Rs 74.43.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.

The 15th daily increase in rates since oil companies on June 7 restarted revising prices in line with costs after ending an 82-day hiatus in rate revision, has taken diesel prices to a new high. The petrol price too is at a two-year high.

Over 63 per cent of the retail selling price of diesel is taxes. Out of the total tax incidence of Rs 49.43 per litre, Rs 31.83 is by way of central excise and Rs 17.60 is VAT. 

Petrol in Mumbai costs Rs 86.04 per litre and diesel is priced at Rs 76.69.

Prior to the current rally, the peak diesel rates had touched was on October 16, 2018 when prices had climbed to Rs 75.69 per litre in Delhi. The highest-ever petrol price was on October 4, 2018 when rates soared to Rs 84 a litre in Delhi.

When rates had peaked in October 2018, the government had cut excise duty on petrol and diesel by Rs 1.50 per litre each. State-owned oil companies were asked to absorb another Re 1 a litre to help cut retail rates by Rs 2.50 a litre.

Oil companies had quickly recouped the Re 1 and the government in July 2019 raised excise duty by Rs 2 a litre.

The government on March 14 hiked excise duty on petrol and diesel by Rs 3 per litre each and then again on May 5 by a record Rs 10 per litre in case of petrol and Rs 13 on diesel. The two hikes gave the government Rs 2 lakh crore in additional tax revenues.

Oil PSUs Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), instead of passing on the excise duty hikes to customers, adjusted them against the fall in the retail rates that was warranted because of a decline in international oil prices to two-decade lows.

International oil prices have since rebounded and oil firms are now adjusting retail rates in line with them.

In 15 days of hike, petrol price has gone up by Rs 7.97 per litre and diesel by Rs 8.88 a litre.

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News Network
January 24,2020

Kochi/Mumbai, Jan 24: Two students who recently returned from China have been kept under medical observation at the Ernakulam Government Medical College here for possible exposure to the coronavirus, an outbreak of which in China has triggered a global health scare.

Reports from Mumbai said two persons there too have been put observation at the civic-run Kasturba Hospital in Chinchpokali, PTI reported.

Health officials said no cases of the deadly infection have been detected.

One of the students being screened in Kerala and both being screen in Mumai have reported symptoms such as cold and fever and has been kept in isolation wards.

The additional district medical officer of Ernakulam, Dr S Sreedevi, said samples of the student’s body fluids would be sent to the National Institute of Virology in Pune for tests.

The youngster consulted a doctor at a private hospital and was referred to the Ernakulam hospital in the wake of the virus outbreak in Wuhan city of China.

A stringent screening system has been set up at the Kochi International Airport to screen passengers who have been in the affected province in China. Persons who have been to Wuhan and showing symptoms of cold, cough and fever are being immediately shifted to the Ernakulam hospital.

All quariantine facilities have been put in place there including an isolation ward and a ventilator.

The other person under observation in Kerala is an MBBS student from Kottayam district who recently returned from his college in China. The district medical office said she has no health issues. She was put under observation as a precautionary measure.

In Mumbai, 1,789 passengers have undergone thermal screening at the Chhatrapati Shivaji Maharaj International Airport for the coronavirus since January 19.

Coronavirus cases were first reported from Wuhan, the capital of central Chinas Hubei province in China.

In the wake of the coronavirus outbreak in China, doctors at international airports have been asked to screen travellers for symptoms if they are returning from China. All private doctors have been asked to alert the authorities if they observe symptoms of the coronavirus.

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