• Tuesday, January 28, 2020

India lowers interest rate after economic slowdown

Discussion in 'Central & South Asia' started by ashok321, Aug 5, 2017.

  1. ashok321

    ashok321 ELITE MEMBER

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    India lowers interest rate after economic slowdown

    [​IMG]

    India’s central bank lowered its benchmark interest rate to a six-and-a-half-year low of 6 per cent on Wednesday, down from 6.25 per cent, after a drop in consumer prices and an overall slowdown in economic growth.

    The decision by the Reserve Bank of India’s Monetary Policy Committee, by a 4-2 vote, to cut the repo rate by 25 basis points — while maintaining a neutral policy stance — was widely forecast, especially after inflation fell to a five-year low of 1.25 per cent in the 12 months to June.

    “Inflation, excluding food and fuel, which has hitherto been sticky has fallen significantly over the past three months,” Urijit Patel, the RBI governor, told reporters after the decision was announced. “These factors opened some space.”

    Indian business groups have been clamouring for lower interest rates as they grapple with a slowdown in economic momentum. India’s gross domestic product grew just 6.1 per cent in the January to March quarter — its slowest pace since late 2014 — as the country reeled from Prime Minister Narendra Modi’s November decision to prohibit the use of 86 per cent of the country’s cash.

    The introduction of the Goods and Services Tax at the start of last month has also had a damping effect on the economy, as business prepares for the transition by short-term cuts in production.

    The RBI noted that a “weakening of the industrial performance” from April to June, when output of consumer durables and capital goods both contracted, pointed to “continuing retrenchment of capital formation in the economy”.

    It also noted that the announcement of investment projects in the quarter fell to a 12-year low.
     
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  2. Kinetic

    Kinetic BANNED

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    So what? India is still fastest growing economy and doing much better than your country. Grow up @ashok321
     
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  3. ashok321

    ashok321 ELITE MEMBER

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  4. graphican

    graphican ELITE MEMBER

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    You mean fastest growing deception? Don't worry.. regardless of how it is in reality, you can always have fudged figures to feel happy about "fastest growing indian economy".
     
  5. ashok321

    ashok321 ELITE MEMBER

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    Hehehehe

    India is the fastest growing GDP in the world:

    [​IMG]

    Hehehehehehe

    https://www.weforum.org/agenda/2017...al&utm_source=twitter.com&utm_campaign=buffer


    Ethiopia is the fastest-growing economy in 2017, according to the World Bank’s latest edition of Global Economic Prospects.

    Ethiopia’s GDP is forecast to grow by 8.3% in 2017. By contrast, global growth is projected to be 2.7%.

    The East African country’s accelerating growth comes on the back of government spending on infrastructure.

    However, borrowing to finance Ethiopia’s large public infrastructure projects has led to a rise in public debt, which increased by more than 10% of GDP between 2014 and 2016, and now exceeds 50% of GDP.


    Uzbekistan has the second-fastest-growing economy, with projected growth of 7.6% thanks to rising oil prices, benign global financing conditions, robust growth in the Euro Area, and generally supportive policies among governments of several large countries in the region.

    Nepal is next, with a 7.5% projection. Nepal’s growth has rebounded strongly following a good monsoon, reconstruction efforts after the 2015 earthquake and normalization of trade with India, says the Bank.
     
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  6. Khan_21

    Khan_21 SENIOR MEMBER

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    I can post several surveys which says this supposedly 'fastest economy' of yours only affects the 1 % of rich in India . That is why your middle class as % of Population is lesser than Pakistan .
     
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  7. MULUBJA

    MULUBJA BANNED

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    India's slowest is world's fastest.

    Ohhhh is it? I never knew that. I thought we lifted 150 million bellow povert line in just few years and as per new PPP criterion, Indian poverty is less than 10% of her population.
     
  8. ashok321

    ashok321 ELITE MEMBER

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  9. Khan_21

    Khan_21 SENIOR MEMBER

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    http://www.thehindu.com/business/Ec...tal-wealth-in-India-Oxfam/article17044486.ece

    In signs of rising income inequality, India’s richest 1 per cent now hold a huge 58 per cent of the country’s total wealth — higher than the global figure of about 50 per cent, a new study showed on Monday.
     
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  10. ashok321

    ashok321 ELITE MEMBER

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  11. MULUBJA

    MULUBJA BANNED

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    But along with that, we uplifted a huge population bellow poverty line in last decade as per new PPP valuation of world bank. It was less than 10% of Indian population bellow poverty line.
     
  12. ChineseTiger1986

    ChineseTiger1986 ELITE MEMBER

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  13. ashok321

    ashok321 ELITE MEMBER

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    Very prudent approach. Something that I have been pushing ever since Doklam standoff.
    War is not a solution.
     
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  14. ChineseTiger1986

    ChineseTiger1986 ELITE MEMBER

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    You have also to be careful about the Wall Street, since the dollar is becoming very weak, and this trend is not going to stop.

    They might utilize this opportunity to attack India's financial systems in this fall in order to feed their dollar.

    During the Cold War, the US also retreated Japan as a close ally against the USSR, but it didn't prevent them to financially backstab Japan.
     
  15. ashok321

    ashok321 ELITE MEMBER

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    Indian economy is inconsequential on these lines.

    Just imagine that one Chinese oil company's (Sinopec) revenue exceeds that of India:



    "The economist" front page portrayed India as a paper tiger:

    [​IMG]

    China: Tax ratio similar to Rwanda, but wants to beat China: That's India

    Low income country like India has no class in the international financial community. India sux on per capita basis.
     
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