Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Monday, March 18, 2019 08:22:22 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

India economy will put on new spurt: IMF

By
09th-Aug-2018       
Comments
Share your thought
Post a comment »
Read all () »

AFP, Mumbai :
India will remain one of the world's fastest-growing major economies in coming years, the International Monetary Fund said Wednesday, in welcome news for Prime Minister Narendra Modi before elections next year.
In a wide-ranging report on Asia's third-biggest economy, the IMF commended government economic reforms but called for action to contain inflation and increase the number of women in the workforce.
The Washington-based institution forecast GDP growth for the 2018-2019 fiscal year at 7.3 percent, rising to 7.5 percent the following year.
The pickup follows a fall to 6.7 percent growth in 2017-2018.
The IMF said India was facing a "broadly positive outlook" thanks to "strengthening investment and robust private consumption" but warned of risks from higher fuel prices and a weakening rupee.
Growth expanded to 7.7 percent for the quarter from January to March, thehighest for seven quarters, as the economy started to recover from a rocky start to Modi's economic initiatives.
Despite teething problems, the IMF commended Modi's government for introducing a nationwide goods and services tax (GST) in 2017, which replaced a myriad of state and national taxes.
But it added that GST, which sets different value-added taxes for different types of goods, could be improved.
"GST has a complex structure with a relatively high number of rates (and exemptions), which could be simplified," it said.
India's quarterly growth fell as low as 5.7 percent in mid-2017 as the economy readied for GST and reeled from a shock cash ban in late 2016.
The decision to scrap 86 percent of currency notes, known as "demonetisation", in November 2016 dealt a major blow to the economy.
The IMF noted that the move had caused "an acute monetary shock" but said the economy has since recovered.
It praised the government for taking measures to tackle crippling debts at India's public-sector banks and for relaxing rules on foreign direct investment, but said more reforms were still needed.
"India would benefit from further liberalisation of trade and foreign investment," the IMF said.
It also said India could boost growth further by bringing more women into formal employment. Women are massively underrepresented in workplaces across patriarchal India.
The IMF said its directors stressed "the importance of modernising labour laws and regulations and other measures to help increase formal employment, particularly the employment of women".
Inflation is on the rise due to high oil prices and a falling rupee.
The country, which is expected to hold a general election in spring 2019, imports nearly 80 percent of its oil and fluctuations in crude oil prices can seriously affect the economy.
The IMF said it projects inflation to rise to 5.2 percent this financial year, well above the target of 4 percent set by India's central bank and a 17-year-long low of 3.6 during the last fiscal year.
The Reserve Bank of India (RBI) has raised interest rates twice this summer and the IMF said it "will need to gradually tighten policy further, in response to inflation pressures".
The IMF predicted that India's current account deficit would widen to 2.6 percent. It also warned of instability caused by a trade war between the  United States and China.
IMF directors "underscored that risks to near-term growth persist, mainly arising from volatile oil prices and tightening global financial conditions," the report said.

Tariff
Add Rate

News Archive

Inside The New Nation

Football »

Zidane enjoys winning start but Atletico beaten in Bilbao


Zinedine Zidane brought Real Madrid's outcasts in from the cold and they repaid him with a win over Celta Vigo on Saturday but La Liga's title race could well be over after Atletico Madrid were beaten by Athletic Bilbao. Isco and Gareth Bale each scored in Madrid's 2-0 victory over ...

Editorial »

Land officials` wealth reports should be made public


THE Land Minister after taking charge in January openly declared a crusade against the corruption, and directed the officials and employees to submit their wealth reports by February 28. As per his order, the wealth reports have been submitted but these were not made public.  Rather, Land Secretary says the ...

International »

New Zealand digs graves as mosque massacre toll rises to 50


AP, Christchurch, New Zealand :Anguished relatives were anxiously waiting Sunday for authorities to release the remains of those who were killed in massacres at two mosques in the New Zealand city of Christchurch, while police announced the death toll from the racist attacks had risen to 50.Islamic law calls for ...

International »

Joe Biden (almost) announces he is running for President


AP, Dover :For a brief moment, former Vice President Joe Biden placed himself in the crowded field of Democratic presidential candidates during a speech on Saturday night. Biden seemingly described himself as one of the people "running" while noting he gets criticized by some progressives."I have the most progressive record ...

Entertainment »

Mim in web series


Sheikh Arif Bulbon :Few days ago, National Film Award winner actress Bidya Sinha Saha Mim acted in a web series titled Beauty & Bullet under Animesh Aich’s direction. Tahsan Khan was her co-actor in that series which yet not aired till now. Meanwhile, Mim has started shooting of Golam Sohrab ...

International »

US-Afghan tensions erupt over Kabul's exclusion from peace talks


Reuters, Washington  :The United States and Afghanistan clashed publicly on Thursday over U.S. peace talks with the Taliban, with a visiting Afghan official accusing the chief U.S. negotiator of "delegitimizing" the Kabul government by excluding it from the deliberations.The remarks by Hamdullah Mohib, a former ambassador to Washington who serves ...

Football »

FIFA votes for new Club World Cup, Euro clubs confirm boycott


FIFA will go ahead with a new 24-team Club World Cup starting in 2021, its President Gianni Infantino said on Friday, setting the world soccer governing body in conflict with Europe's top clubs.Infantino, speaking at a news conference, said FIFA had made the decision at its council meeting on Friday.The ...

City »

Children are engrossed in painting at a drawing competition organised by the Jatiya Press Club on the occasion of birthday of Bangabandhu Sheikh Mujibur Rahman and National Children's Day at the club on Saturday.


Editorial »

Harassment of female workers in foreign lands


Bangladeshi women staying in Saudi Arabia as domestic workers have been facing sexual abuse and physical torture for a long time. Recently, the issue has been conveyed to Saudi authorities. Recently, a Bangladesh delegation led by State Minister of Expatriates Welfare and Overseas Employment visited Saudi Arabia and met with ...

Entertainment »

Keerthy Suresh to star opposite Ajay Devgn in an upcoming biopic


Ajay Devgn is all set to embark on his next, a subject based on the life of Syed Abdul Rahim, revolving around football. The film will be directed by Amit Sharma, whose last directorial, Badhaai Ho made quite a noise at the box office. The latest update from that front ...

Editorial »

Global community must stand against hatred in all its forms


THE shocking news that hit the headlines of international media on Friday after 49 people were killed and at least 20 others critically injured by the gunmen at two mosques in Christchurch, New Zealand; the worst attack in country's history. As many as 41 people died at one mosque, seven ...

Entertainment »

Nayanthara starts shooting for Vijay's next film


Actor Vijay, last seen in AR Murugadoss's Sarkar, is all set to essay the role of a coach in his next outing with director Atlee. The film, currently dubbed as Thalapathy 63, stars Nayanthara as the leading lady and sources from the unit have confirmed that she has started shooting ...

International »

Pakistan will have better ties with India after polls: Imran


PTI, Islamabad :Pakistan will have better relations with its neighbours including India after the upcoming general elections, Prime Minister Imran Khan said on Thursday, claiming that Islamabad has taken the first step on a new path to peace and progress.Recently, tensions between India and Pakistan escalated after a suicide bomber ...

City »

Bangladesh Progati Lekhok Sangha brought out a rally on Dhaka University area on Friday on the occasion of its third national council.


.

Sports »

Federer, Nadal steam into Indian Wells quarter-finals


AFP, Indian Wells :Former champions Roger Federer and Rafael Nadal edged closer to a blockbuster semi-final showdown at the ATP Indian Wells Masters on Wednesday with brisk fourth-round wins.World number two Nadal overpowered Serbian qualifier Filip Krajinovic 6-3, 6-4 to book his quarter-final berth in one hour and 26 minutes.Federer, ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news