The country will still be second largest emerging market
GN Bureau | October 12, 2015
Indian economy is recovering at a much slower-than-expected pace, said global financial services major Bank of America Merrill Lynch today. However, it said India's growth was enough to overtake Brazil and Russia to become the second largest emerging market after China.
"Is recovery happening? Yes, but even more slowly than we expected. At the same time, India's relatively faster growth is allowing it to overtake Brazil and Russia in GDP to emerge as the second largest emerging market after China," BofA-ML said in a note.
The firm today also trimmed its growth forecast for India to 5.5 per cent from 6 per cent for the current fiscal, as per the old GDP series. As per the old series, the base year for calculation of national accounts was 2004-05.
The Central Statistics Office (CSO) has now adopted the new series of National Accounts with 2011-12 as base year and subsequently revised the Gross Domestic Product (GDP) growth rate to 6.9 per cent in 2013-14 from 4.7 per cent and 5.1 per cent in 2012-13 from 4.5 per cent.
The RBI has also lowered its economic growth forecast for the current fiscal to 7.4 per cent from its previous projection of 7.6 per cent.
"We have cut our GDP forecasts to 5.5 per cent from 6 per cent for 2015-16 and to 6.5 per cent from 7 per cent for 2016-17 (in the old GDP series) on poor rains as well as delays in global recovery and domestic lending rate cuts," it added.
The global brokerage firm said that the coming months could see a consumption recovery largely driven by four factors -- softer lending rates, public sector salary hikes after the 7th Pay Commission, household savings on lower oil prices and a possible hike in wheat MSP before the early-2017 Punjab/UP polls.
On RBI rate cut, BofA-ML said, "We expect the RBI to cut another 25 bps in February after it meets its under-6 per cent January 2016 inflation mandate."
As India celebrates 70 years of freedom, Governance Now looks back and picks 70 words – or phrases, buzzwords, slogans, events – that best define this ancient nation and young democracy. Here, you will find much to be proud of, much tinged with pangs of nostalgia. Then there are entries that
Dr Kenneth E Thorpe, a professor of health policy and management at Emory University in the US and also the executive director of Partnership to Fight Chronic Diseases (PFCD), says that the government alone cannot do everything. “They don’t have the resources and capacity. So we have to fin
Energy Efficiency Services Limited (EESL), a joint venture company of PSUs of ministry of power, signed an agreement with oil marketing companies (OMCs) of ministry of petroleum and natural gas for distribution of energy efficient appliances under the flagship Unnat Jeevan by Affordable LEDs and applianc
Union minister for civil aviation, P Ashok Gajapathi Raju inaugurated the upgraded passenger terminal building of Jammu airport. Notably, Jammu airport belongs to the Indian Air Force, and airports authority of India (AAI) maintains a civil enclave for civil aircraft operat
The election commission has become increasingly assertive in the past few months, showing its mettle in times of electoral challenges. Weeks after rooting from EVMs and just days after the poll panel declared votes cast by two rebel Congress legislators in the Rajya Sabha e
Is Amit Shah`s blueprint for 350-plus seats in 2019 Lok Sabha elections achievable?