Rain fury: MET issues red alert in 9 districts in Kerala

The World Bank says that a lack of credit and drop in private consumption have led to a gloomy growth outlook for India with a steep cut in growth rate for the current fiscal year and only a modest gain projected for the next year.

India's growth rate is forecast to be only 5 per cent for the current fiscal year, weighed down by a growth of only 4.5 per cent in the July-September quarter, according to the 2020 Global Economic Prospects report released on Wednesday.

"In India, [economic] activity was constrained by insufficient credit availability, as well as by subdued private consumption," the Bank said.

The growth rate is forecast by the Bank to pick up to 5.8 per cent in the next fiscal year and to 6.1 per cent in 2021-22.

India's growth rate was 6.8 per cent in 2018-19.

The 5 per cent growth rate projection for the current financial year is a sharp cut of 2.5 per cent from the 7.5 per cent forecast made by the Bank in January last year, toppling it from the rank of the world's fastest growing economy.

India's performance follows a global trend of lowered growth weighed down by developed economies.

The report estimated world economic growth rate to be only 2.4 per cent last year and forecast it to edge up 0.1 per cent to 2.5 per cent in the current year.

Even with the lower growth rate of 5 per cent in the current fiscal year and 5.8 per cent forecast for the next, India holds the second rank among large economies, behind only China with an estimated growth rate of 6.1 per cent for 2019 and 5.9 per cent this year.

The report blamed "weak confidence, liquidity issues in the financial sector" and "weakness in credit from non-bank financial companies" for India's slowdown.

The Bank predicated India's recovery to 5.8 per cent in the coming financial year for India but "on the monetary policy stance remaining accommodative" and the assumption that "the stimulative fiscal and structural measures already taken will begin to pay off."

It also warned that sharper-than-expected slowdown in major external markets such as United States and Europe, would affect South Asia through trade, financial, and confidence channels, especially for countries with strong trade links to these economies."

The Bank said that the growth of advanced economies was 1.6 per cent last year and "is anticipated to slip to 1.4 per cent in 2020 in part due to continued softness in manufacturing."

In contrast the growth of emerging market and developing countries is expected to accelerate from 3.5 per cent last year to 4.1 per cent this year, the report said.

In South Asia, Bangladesh is estimated to have the highest growth rate of 7.2 per cent in the current fiscal year, although down from 8.1 per cent last fiscal year.

But its higher regional growth rates are coming off a lower base with a per capital gross domestic product of $1,698 compared to $2,010 for India.

Bangladesh is expected to grow by 7.3 per cent in the next financial year.

Pakistan's growth rate is estimated at only 2.4 per cent in the current fiscal year and is projected to rise to 3 per cent in the next, according to the Bank.

The Bank blamed monetary tightening in Pakistan for a sharp deceleration in fixed investment and a considerable softening in private consumption for the fall in growth rate from 3.3 per cent in the 2018-19 fiscal year.

Sri Lanka's growth rate was estimated to be 2.7 per cent last year and forecast to grow to 3.3 per cent this year.

Nepal grew by an estimated 6.4 per cent in the current fiscal year and will rise to 6.5 per cent in the next.

Thiruvananthapuram, May 24: Keralites on Sunday celebrated a low-key Eid-ul-Fitr amid the coronavirus lockdown in the state as most of the faithful marked the culmination of the fasting month of Ramzan by offering thanksgiving prayers at home.

The festival is being celebrated across Kerala and Jammu and Kashmir on Sunday, while the rest of the country will celebrate Eid on Monday.

Kerala Chief Minister Pinarayi Vijayan extended Eid-ul-Fitr greetings to all Keralites across the world.

State Governor Arif Mohammed Khan also extended his festival wishes to all the Keralites.

"May we also have the blessing to prevent and eliminate the COVID-19 disease," Khan tweeted.

Vijayan said this year Ramzan is celebrated at a time when the world is going through "an unprecedented crisis and misery" because of pandemic COVID-19.

"Usual celebration during Ramzan is not there anywhere in the world due to the pandemic. Instead of offering prayers at mosques, which is important for Muslims, this time the prayers and the feast is performed in their homes.

Community leaders have taken this important decision to protect the interests of the society" he added.

The chief minister said Eid-ul-Fitr gives out a message of equality, tolerance and repentance.

The state government had earlier announced that the lockdown restrictions in the state onSunday will be relaxed in the view of Eid-ul-Fitr with shops selling essential items remaining open.

The State government had earlier declared that a complete shutdown would be observed in Kerala on Sundays in order to contain the spread of the deadly virus.

Dubai/Abu Dhabi, May 7: A group passengers who are scheduled to fly to Kozhikode on the first COVID-19 Indian repatriation flight have begun streaming in to Terminal 2 at Dubai International Airport.

Wearing masks and gloves, the passengers are now waiting for the medical screening and check-in services to begin.

Airport officials gave entry to the departure terminal only to passengers with tickets.

Naif resident Mahamood P.P, 60, was among the first to reach as he was not informed about the change in the flight schedule, he told Gulf News.

“I reached here at 9.30am as I didn’t get any information about the 2.10pm flight getting rescheduled to the evening,” he said.

Suffering from a heart disease, Mahmood, who works as a juice maker at a juice shop near Naif Police station, said he stepped out of his room for the first time in two months.

“As there were many cases in Naif, I never went out because of my health condition. Since I was not in contact with anyone else other than my roommates who also never went out, I didn’t go for the COVID screening also. I was worried that I might be exposed to infection while waiting for the tests,” he said.

He thanked the Indian Consulate for giving him priority to fly home. “I need to go for my heart checkup. So I wanted to fly home as soon as possible.”

However, he said his son, a civil engineer who came here searching for a job, is not flying back though he is on a visit visa.

“Since the UAE government has allowed people on visit visa to stay here till December, he has decided to try his luck in getting a job,” said Mahamood.

Sneha Thomas, who is eight months pregnant, was also among the first to arrive at the airport.

Her husband Somi Jose came to drop her.

Thomas is among 11 pregnant women flying on the Dubai-Kozhikode flight.

Sharjah resident for 30 years, Mohammed Ali Yaseen, who is also the secretary of the Kerala Muslim Cultural Centre in Sharjah, said he is flying home as the restaurant he was running had to be closed due to a demolition plan of the building.

“Three months ago I got the notice to vacate the building and I had to close the restaurant. I was looking for another shop. But then the coronavirus hit. Now there is no point in me opening me a new shop as those who are already operational are not getting any business.”

He said he decided to drop the plan and go home for now. “My visa and license are still valid. I will try to come back when this pandemic ends and things are better.”

Meanwhile, at the Au Dhabi International Airport, families with kids were given priority to proceed towrards check-in. at terminal 3. The passengers coming in right now were mostly women who were on a visit visa. Pregnant women and the elderly too were given priority.