The government should also consider increasing the income criteria under PMAY scheme to Rs 18 and 25 lakh from the current Rs 12 and 18 lakh in the MIG I and ll categories, respectively. The chamber called for additional tax benefits to home buyers to boost demand.
Is inflation targeting right for India, and does it focus on the right target?
Marico, HUL and other companies which have offered price sops are placed well in the market. Whatever steps the government has taken, have not manifested in growth as of now. While some of the pass throughs happened through tax rate cut where the government’s intention was to incentivise the companies to invest more.
Finance Minister Nirmala Sitharaman will increase the income tax exemption limit from Rs 2.5 lakh per annum currently, majority of respondents surveyed by tax consultancy firm KPMG opined. The majority of respondents also feel that the government in the forthcoming Budget to be unveiled on February 1 will increase the standard deduction and give more incentives for housing loans.
Global oil demand growth is still languishing and the market will be closely following Opec+.
At present, India’s nominal GDP growth stands at 7.5 per cent against 11.20 per cent a year ago.
UBS estimates Nifty earnings could grow around 15 per cent in FY21-23 in its base case scenario.
I would keep betting on quality private sector banks which are more retail focussed.
The report further said the recent macro-economic data does point at some green shoots.
There is a worry that credit demand is weaker than before, says Indranil Sen Gupta.
The report added that the recent macro-economic data do point at some green shoots in economic activities.
Ind-Ra expects GDP to grow at 5.5% year-on-year in FY21, however, the downside risks persist.
In recent months, the government has announced a number of steps to shore up the economic growth including a corporate tax rate cut.
To reverse the ongoing economic slowdown, the immediate priority is to stimulate demand in the system.
Gross domestic product is estimated to grow 5.0% in FY20, slower than the 6.8% growth in FY19.
The large-scale manufacturing sector in the country witnessed a decline of 5.9 per cent in Q1-FY20 on YoY basis. This contraction was broad-based, as construction-allied industries, petroleum and automobile industries continued on downward path.
The net addition to the ESIC, after excluding those who ceased paying their contribution during the month, was 6.97 lakh, the highest for any month in the current fiscal year.
A record level of pessimism has creeped into the CEOs across the world regarding the worldwide economic growth, a much sought after survey showed here on the first evening of the WEF annual meeting.
Nielsen said the final tranche of Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) payments, improved ease of doing business ranking to 63 from 77, expectations of budget tax measures and a steady exchange rate contribute to a stable consumption outlook.
Indian firms are aiming to diversify focus on the Rest-of-the-World markets. The market expansion coincides with a push towards a platform play, creating a common design and engineering base from which products can be developed to meet a quicker time-tomarket paradigm.
Despite low penetration, the ongoing economic slowdown will impact insurance premium collections over the next two to three years, global ratings agency Moody's Investors Service said.
The Rs 4-lakh crore FMCG sector will close fiscal 2020 with a 9 per cent growth, down 4 percentage points and a jump in rural buying will lift the same to 11 per cent in fiscal 2021, a report said on Tuesday.
The first advance estimates of the GDP growth for FY20 are being pegged at 5 per cent. The GVA estimate is being put at 4.9 per cent.The numbers are released at a time when the Indian economy has seen a sharp slowdown in growth, surprising policy-makers.The Indian economy grew at a six-year low of 5 per cent and 4.5 per cent, respectively, in the quarters ending June and September.GDP growth rate for 2019-20 estimated at 5% against 6.8% in FY19
The advance GDP estimates come at a time when the Indian economy has seen a sharp slowdown in growth.
Net-net, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 176 crore on Wednesday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 326 crore, data suggests.
The PMS carefully picked shares of asset-light companies that had reinvestment moats.
While confidence levels are generally down across the world, there is a wide variation from country to country.
According to the United Nations World Economic Situation and Prospects (WESP) 2020, a growth rate of 2.5 per cent is possible in 2020, but a flare up of trade tensions, financial turmoil, or an escalation of geopolitical tensions could derail a recovery.
The report has also lowered GDP growth estimate for India while expressing hope that combination of fiscal stimulus and financial sector reforms will help boost consumption. However, the data related to India was revised to 5% for the current fiscal and 5.8-5.9% for the next financial year, Nagesh Kumar, Head, UN Economic and Social Commission for Asia and the Pacific, said.
This year the Budget will be presented at a time when growth has dropped to a six-year low amidst a persistent slowdown in the economy and the weak demand. Besides, consumption, investment, the outlook and the targets likely to be missed for the fiscal deficit, tax revenues and disinvestment, all add up to a dismal scenario for the current fiscal.
Hanke, who currently teaches applied economics at Johns Hopkins University (USA), pointed out that India experienced an unsustainable credit boom, and now the chickens are coming to roost with a massive pile of non-performing loans piled up, primarily at the state-owned banks.
UNCTAD, in its Global Investment Trend Monitor report said that the global foreign direct investment remained flat in 2019 at $1.39 trillion, a 1% decline from a revised $1.41 trillion in 2018. “South Asia recorded a 10% increase in FDI to $60 billion. The growth was driven by India, with a 16% increase in inflows to an estimated $49 billion. The majority went into services industries, including information technology,” it said.
Tata Steel was the biggest loser in the Sensex kitty of stocks, down 3.01 per cent.
Analysts said if Nifty50 breaches the 12,230 mark on the downside, then it will slip further.
Fitch said growth will gradually recover to 5.6 per cent in FY21 and 6.5 per cent in the following year.
The IMF trimmed back its global growth forecasts, mostly due to a slowdown in India.
Broader market outperforming Nifty or Sensex will get a little wider in the course of 2020.
Interim dividend may come up for discussion as the govt struggles to meet its fiscal deficit target of 3.3%.
FY20 is going to be one of the weakest in the last 15 years in terms of consumer growth.
There is a disturbing trend that we perceive even in equity investing.
The results show a continued shift in global influence from west to east, with Indian, Chinese and Vietnamese cities dominating the top positions.
Growth could be hit as demand has cooled with slow employment growth impacting consumption, co expects 6.6% for ’20 and 6.7% in ’21.
Moody's expects economic growth to pick up in 2020 and 2021 to 6.6 per cent and 6.7 per cent respectively.
Its estimate for FY21 was also further downgraded to 5.8%-5.9% from 6.6% in the report, said Nagesh Kumar, head of the UN economic and social commission for Asia and the Pacific, while presenting the report in Delhi. Since the report was finalised in October it did not take into account the second quarter results and hence the outlook has been revised, Nagesh Kumar said.
In its report on Budget expectations, the economists said RBI should "seriously think" of providing liquidity to NBFCs against the assets held by the lenders. "Given the crisis of confidence in the financial markets, it is imperative that central banks don't forget their primary function of being the lender of the last resort," they said.
Mukherjee, who also served as the finance minister in the UPA government, further said there is nothing wrong in public sector banks needing capital infusion. "I am not worried over the slow rate of GDP growth in the country. Certain things happening will have its impact," he said while addressing an event at the Indian Statistical Institute (ISI).
"India's growth is now seen at a slower 5.1 per cent in fiscal year 2019-20 as the foundering of a major non-banking financial company in 2018 led to a rise in risk aversion in the financial sector and a credit crunch. Also, consumption was affected by slow job growth and rural distress aggravated by a poor harvest," Asian Development Bank said.
Industry experts are divided over the likely outcome of the sector heading towards a duopoly with two private telcos-Reliance Jio and Bharti Airtel plus one PSU- BSNL with a limited reach. While Vodafone Idea is reeling under the debt of Rs 53,000 crores as AGR payment, Airtel is better financially placed to pay its statutory dues of Rs 35,000.
In the current fiscal, the government has decided to stay with the borrowing programme as announced in the Budget 2019. This has cheered the markets and kept yields in check. In the Budget speech, the finance minister also announced borrowing from overseas market but later on dropped the plan owing to currency risks.
The Mahindra Group Chairman hopes to get 'our competitive juices flowing' for this year's Budget.
Once the vegetable prices cool down, the headline inflation figure will fall back within RBI's comfort zone.
There is a pretty wide universe of companies which generate excess returns routinely.
The goal was set soon after Modi took office a 2nd time. But since then, India has been under a dark cloud.
A granular look reveals the disarray: All lead indicators point to a dismal manufacturing growth.
Industry bats for stimulus measures such as reduction in income tax, job creation and direct incentives for rural consumers. Research firm Nielsen said in an Oct report that overall FMCG sales growth fell from 16.2% yoy in the Sept 2018 quarter to 7.3% in the Sept 2019 quarter, with rural consumption at the slowest in seven years.
While addressing at the Indian Statistical Institute (IIS) in Kolkata on December 11, the former president of India Pranab Mukherjee said, "I am not very much worried over the slow Gross Domestic Product (GDP) growth because certain things happened, which had its impact."Economic slowdown: Not worried over slow rate of GDP growth, says Ex-President Mukherjee
Haefele joins his Wall Street counterparts in voicing concerns over returns this year.
In such a market, precision eye for value-price-quality tradeoff will be vital.
Former prime minister Manmohan Singh said on Friday the GDP growth rate of 4.5 per cent was unacceptable and worrisome, and urged his successor Narendra Modi to set aside "deep-rooted suspicion" of society and nurse India back to harmonious, mutually trustworthy society that can help the economy soar.4.5% GDP growth rate unacceptable, worrisome: Manmohan Singh
Country will have to increase its labour productivity growth to 6.3% to attain 8% economic growth.
MCX Gold (Feb) futures were up 0.17 per cent to Rs 37,829.
ICRA's principal economist, Aditi Nayar, sheds light on what may hurt the second-quarter GDP growth which will be released on Nov 29. She talks about the pain points, hurting investments and the factors driving down demand. Watch.Lead indicators point to disappointing Q2 GDP growth: Aditi Nayar
India's real GDP growth in 2019-20 fiscal is expected to be slightly below 5 per cent as the impact of stimulus measures will take time to filter through to the economy, IHS Markit has said.
The RBI is scheduled to announce its next bi-monthly monetary policy on February 6.
The ICRA also forecast the country's GVA at basic prices in year-on-year (YoY) basis to 4.5 per cent respectively.
The Delhi-based NCAER has pegged GDP growth at 4.9 per cent as against 6.8 per cent in 2018-19. Going forward, NCAER said the monetary policy measures are unlikely to revive growth at this juncture and suggested providing fiscal stimulus, which too can be challenging unless it can be financed through better revenue generation.
India's second quarter GDP growth slowed sharply to 4.5 per cent, the weakest pace in more than six years, as manufacturing output hit a slump and consumer demand as well as private investment weakened. The GDP expansion rate moderated from 5 per cent recorded in April-June 2019 and is much weaker than the 7 per cent growth registered in July-September 2018, according to official data released Friday. The major factor in the GDP fall was manufacturing contracting by 1 per cent. A separate data showed core infrastructure industries' output declining 5.8 per cent in October, the biggest contraction since at least 2005. ET's Opinion Editor TK Arun shares his views on Q2 GDP data. (Text: PTI)India's GDP growth slips further to 4.5% in Q2FY20: Is the recovery in sight? | VIDEO
India's second quarter GDP growth slowed sharply to 4.5 per cent, the weakest pace in more than six years, as manufacturing output hit a slump and consumer demand as well as private investment weakened. The GDP expansion rate moderated from 5 per cent recorded in April-June 2019 and is much weaker than the 7 per cent growth registered in July-September 2018, according to official data released Friday. The major factor in the GDP fall was manufacturing contracting by 1 per cent. A separate data showed core infrastructure industries' output declining 5.8 per cent in October, the biggest contraction since at least 2005. ET's Opinion Editor TK Arun shares his views on Q2 GDP data. (Text: PTI)India's GDP growth slips further to 4.5% in Q2FY20: Is the recovery in sight?
Delivering his valedictory address at a national conclave on economy, former prime minister Manmohan Singh said mutual trust is the bedrock of societal transactions fostering economic growth, but "our social fabric of trust, confidence is now torn and ruptured".
India’s GDP growth slumped to 4.5% in the September quarter, its weakest pace since 2013.
The slump was mainly on account of a weak manufacturing and a drop in exports.
Given companies already have high levels of debt overall credit metrics are unlikely to improve.
I have looked at the data carefully; there is no fall in private consumption expenditure.
"Don't get disheartened. This is just a temporary phase. I want to tell you that India will become a USD five trillion economy by 2024," Amit Shah said. The Union minister further added that in the first 70 years, our economy grew to USD two trillion. In the first five years of Prime Minister Narendra Modi's government, it was taken to USD three trillion.
Many fund managers in recent times have said that the tide is turning in favor of smallcaps and midcaps.
The Japanese yen weakened 0.1 per cent to 109.65 per dollar, close to a seven-month low.
There is no good news for the stock, which delivered a solid 58% return in the last one year.
India is growing 200 bps below potential growth rate of 6.5-7%.
Modi, who seems to have taken charge of the efforts to revive the economy, has over the past few days held as many as 12 brainstorming meetings with different stakeholders over various issues affecting the economy and to thrash out appropriate policy interventions in the upcoming Budget.
India's GDP growth is seen dipping to an 11-year low of 5 per cent in the current fiscal, mainly due to poor showing by manufacturing and construction sectors, government data showed. It said tighter credit conditions in the non-banking sector are contributing to a substantial weakening of the domestic demand in India.
The biggest shockwave was a rise in crude oil prices as Brent crude shot up by more than $3 per barrel.
While the company’s maintained its sales in the auto segment during the quarter, its branded products & retail segment grew 23% QoQ while industrial products and projects grew 12% QoQ. According to provisional figures released by the company during Q3FY20, Tata Steel India’s production grew by 1.8% over Q3FY19 to 4.46 million tonne but remained flat on a QoQ basis.
November brought more bad news, GDP growth slipping to 4.5% between June and September 2019.
India's GDP growth is seen dipping to an 11-year low of 5 per cent in the current fiscal, mainly due to poor showing by manufacturing and construction sectors, government data showed on Tuesday. Reacting to the data, Chidambaram said the Advanced Estimates of National Income 2019-20 released yesterday tells the story of neglect and mismanagement of the economy by the BJP government.
The local currency on Tuesday settled 11 paise up at to 71.82 against the greenback.
The revision, it said, became "inevitable as the high-frequency data now suggests that the agency's estimate of 2QFY20 GDP growth coming in a little higher than 5 per cent is unlikely to hold".
Roubini pointed out the consensus opinion said the global economy will revert back to expansion.
Moody's had on October 10 slashed India's economic growth forecast for 2019-20 fiscal to 5.8 per cent.
Good performance, Nature’s Basket sale led to 128% jump in Godrej Industries' profit in Q2.
If we are in the range of 5.5-5.8% even in Q3 and Q4, growth rate could go even below 5%
Developers pointed out that a revival in housing industry will also help the overall economy regain its growth momentum. The industry suggested tax reforms and raising deduction on home loan interest to Rs 5 lakh from Rs 2 lakh to boost sales.
Fitch, which had in June this year put India's GDP growth at 6.6 per cent for the fiscal year that began in April 2019, said the recent government measures to boost economy including a cut in corporate tax rates will gradually nudge growth.
Jamie Dimon said trade tensions had impacted businesses & sentiments, taking a toll on global growth. Suggesting that policymakers needed to introspect over policy responses, he called for coordinated action between govts & central banks across the world.
The government has been intervening, at regular intervals, to pump prime the economy. Finance minister Nirmala Sitharaman announced new measures to boost economy and rolled back those which soured investor sentiment. The economy, which hit a trough in the second quarter, is expected to see some revival in the second half of this fiscal.
The NIP document is thin on the strategy, barring one page on the Central contribution to the same
RBI will cut key rates by a further 0.15% in February review, over the 0.25% expected after the December meeting, BofA ML said. Economic growth has slipped to a six-year low of 5% for the June quarter and is expected to turn in lower than that in the September quarter. Lack of consumption is seen as one of the key factors pulling down growth.
The mortgage lender's executive said bankers are not taking lending decisions because of this risk averseness syndrome, and warned it will hamper India's animal spirit unless there is a change. The comments come at a time when official estimates for FY20 project GDP growth hurtling to an 11-year low of 5 per cent. The government is also allaying fears in the face of greater actions by agencies like CBI, ED and SFIO.
The fiscal deficit or the gap between expenditure and revenue was at Rs 8,07,834 crore as on November 30, 2019.
''Whenever a company continues to grow at 24 per cent YoY, the multiple remains high.''
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