Page 48 - Indian Economy

Goldman cuts India's growth forecast to 7%; M Stanley sees downside risks

Goldman Sachs has revised lower its growth projections for India after the April-June quarterly gross domestic product readings missed market estimates.

Rice export ban won't lower inflation or meaningfully improve food security

The last time India blocked grain exports, in 2007 and 2008, the decision precipitated a years-long food-security crisis

Top Headlines: Q1 GDP growth misses estimates; Sony-Zee merger, and more

India's economy grew below expectations at 13.5 per cent in April-June 2022-23 (Q1 FY23), despite the low base of the equivalent period of 2021-22

Disappointing GDP data, weak global cues to weigh on market sentiments

Analysts said there are signs of the waning of the intensity of tailwind generated by economic reopening

13.5% growth hides warts

The 13.5% print is lower than consensus estimates, and more so, when compared with the Reserve Bank of India's Q1 forecast of 16.2%

India's April-July fiscal deficit recorded at 20.5% of FY23 target

The centre spent Rs 1.1 trillion or 35% of the full year's estimate for food, fertiliser and petroleum subsidies

India's real GDP growth will exceed 7% growth in FY23: Finance secretary

This would make India the world's fastest growing major economy in FY23

India's core sector output growth slows to six-month low of 4.5% in July

The growth in these eight sectors witnessed double digits growth in May and June at 19.3% and 13.2%, respectively

Four of six major economies miss growth estimates including India: NSO

The results were even lower than the 14.5 per cent estimate given by the RBI's Survey of Professional Forecasters on Macroeconomic Indicators in August.

Unemployment rate drops for fourth straight quarter, lowest in 4 yrs: PLFS

This is the lowest unemployment rate recorded in the last 4 years, from the time NSO launched India's first computer-based survey in April 2017

Private consumption, capital investment rises in Q1, govt consumption slows

The GDP numbers, Finance Secretary T V Somanathan said this trend was par for the course, as GFCF in Q1 was usually lower than the previous year's Q4.

Q1 GDP growth misses estimates despite low base; govt spending subdued

13.5% expansion in June QTR despite low base; GVA at basic prices up 12.7%

On-time payments can drive higher growth

Lacklustre trend growth calls for attention to the economy, with less distractions, diversions, and disruptions. Government can lead with payment on time

FM Sitharaman to review state of economy at FSDC meeting on Sep 15

Finance Minister Nirmala Sitharaman will review the state of the economy amid global and domestic challenges at a meeting of the Financial Stability and Development Council (FSDC), scheduled on September 15. The 26th meeting of the high-level panel to be held in Mumbai will be attended by all financial sectoral regulators, including RBI Governor Shaktikanta Das, sources said. The FSDC is the apex body of sectoral regulators, headed by the Union finance minister. The meeting will review the current global and domestic economic situation and financial stability issues, including those concerning banking and NBFCs, according to the sources. The council would also discuss measures required for further development of the financial sector and to achieve inclusive economic growth with macroeconomic stability, they said. As per the RBI estimate, the country's GDP is expected to witness a growth of 7.2 per cent in the current financial year amid elevated retail inflation at 6.7 per cent.

India's Q1 GDP: Disappointing numbers

Lower than expected growth poses hard questions

India can generate $212 bn by investing in renewable energy: Report

About 3.4 million jobs can be created if ventures worth $350 billion is invested in initiatives dedicated to renewable energy and cleantech, said study

Economy likely to grow at 7%-7.4% in FY23, says Finance Secretary

Indian economy is on course for a 7-plus per cent growth rate in the current fiscal year, finance secretary T V Somanathan said on Wednesday. Commenting on the first quarter GDP growth rate of 13.5 per cent, he said the economy is 4 per cent above pre-Covid levels. Allaying concerns of high imports denting the fiscal architecture, he said the government was on course to meet fiscal deficit target of 6.4 per cent of GDP in current fiscal ending March 31, 2023. Economic Affairs Secretary Ajay Seth said GST collection for August is likely to remain in the range of Rs 1.42-1.43 lakh crore, in signs of buoyancy in economy. Also, gross fixed capital formation grows 34.7 per cent during April-June, highest in 10 years, he said.

On course to achieve fiscal deficit target: Finance Secretary Somanathan

Finance Secretary TV Somanathan on Wednesday exuded confidence that the fiscal deficit target of 6.4 per cent of GDP in 2022-23 will be met without pruning capital expenditure. The Union Budget has pegged the fiscal deficit at Rs 16.61 lakh crore or 6.4 per cent of the gross domestic product (GDP) for the financial year ending March 2023. "We are on course to achieve our fiscal deficit target and it is not because of a slowdown in capital expenditure," said Somanathan, who is also expenditure secretary. He further said the government will focus on capital expenditure and try to control revenue expenditure to the extent possible. "We have some large revenue contingencies, which are going to come in here in terms of fertiliser subsidies and food subsidies. So, the fact that revenue expenditure has been growing slightly less than proportionately to that is not a bad thing. It's a good thing," he added. The capital expenditure was Rs 1.75 lakh crore during the first quarter of 2022-23

Core sector output slows down to 4.5% in July against 9.9% a year ago

The output of eight core infrastructure sectors slowed down to 4.5 per cent in July -- the lowest in six months -- against 9.9 per cent in the year-ago period, according to official data released on Wednesday. The output of these infrastructure sectors expanded by 13.2 per cent in June, 19.3 per cent in May, 9.5 per cent in April, 4.8 per cent in March, 5.9 per cent in February and 4 per cent in January. The production growth of eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- was 11.5 per cent in April-July this fiscal against 21.4 per cent a year ago. Crude oil and natural gas production contracted by 3.8 per cent and 0.3 per cent, respectively, during the month under review.

India's Q1FY23 GDP grows 13.5%, fastest in a year: Govt data

India's GDP growth in Q1FY22 was 20.1%