Skip to main content

GDP may grow to 7% in FY19 as GST impact wanes: HSBC

By
GDP may grow to 7% in FY19 as GST impact wanes: HSBC
It can be noted that International Monetary Fund has come out with an estimate of 7.4 percent growth two days ago.
British lender HSBC said waning effects from the GST impact will help push the Indian GDP growth to 7 percent in FY19.It can be noted that International Monetary Fund has come out with an estimate of 7.4 percent growth two days ago."For India, we are expecting the economy to grow in the next three years (FY18-20) by 6.5 percent, 7 percent and 7.6 percent," the bank’s chief economist Pranjul Bhandari told reporters on a conference call.
She added that the growth has slid from previous year’s 7.1 percent to 6.5 percent in FY18 due to the implementation of the Goods and Services Tax (GST)."As some of the short-run disruptions caused by GST get ironed out, we expect growth to rise in the next couple of years," she noted.
Bhandari added that from a medium-term perspective of about three years, the bank expects GST alone to add 0.40 per cent to the GDP growth figure.It’s newly appointed country head Jayant Rikhye also said that the Indian economy is well positioned to grow once the GST-related difficulties are overcome.
In a January 2 report, where it had first come out with the 7 per cent growth estimate for FY18, the bank had spoken about the note ban as the second factor apart from GST which had impacted the growth.Meanwhile, with ten heads of state from the ASEAN grouping invited as guests for the Republic Day celebrations, the bank said it is keen to play an aggressive role in finance and advisory activities.
Without disclosing its presence in the important trade corridor, the bank said its presence in six of the ten countries makes it possible for it to be more active.With a cross-border trade of USD 64 billion in 2016, the ASEAN block is the country's fourth biggest trading partner.

The Economic Times, New Delhi, 25th January 2018

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more