Recent GDP estimates show Q3 growth at 7% and full year at 7.1%, well above most autonomous projections that demonetization would take opaque clang. The government says numbers show the effect had been embellished, but others suggest waiting one more quarter before drawing inferences.Being the fastest-growing large economy in the world is India’s providence, and even the most poorly conceived economic policy imaginable can’t stop destiny. At least, that is, if you believe the government’s statisticians, who said on Tuesday that India’s GDP grew at 7 percent in the very quarter that the government withdrew high-value currency notes from circulation.
To say the data is startling is an understatement. The IMF had predicted that India would grow at around 6 percent in the half-year after “demonetisation,” as it’s called. Most independent economists forecast GDP growth would come in somewhere between 6 and 7 percent. Those economists naturally assumed that withdrawing 86 percent of the country’s currency and reducing access the bank accounts would dampen private consumption.
India’s future objectives:
The best provocation according to India’s GDP data, is taking away people’s money. After three-quarters of accelerating decline of the banking sector declining down at 1.9 percent, 3.1 percent and then 5.6 percent — it grew at 3.5 percent precisely when every bank employee was stocking ATMs instead of handing out loans .The data says manufacturing grew at 8.3 percent in the quarter, even though an index of manufacturing production produced by the same government statisticians said it shrank 2 percent in December.
On the other hand, using alternate measures to evaluate the rapidity of growth, as Chinese Premier Li Keqiang famously did when he doubted his own GDP numbers, does provide some reassurance. Rail freight and power generation — two of Li’s main indicators — were both up.
And there musing alternate measures to judge the pace of growth, as Chinese Premier Li Keqiang famously did when he doubted his own GDP numbers, does provide some reassurance. Rail freight and power generation — two of Li’s main indicators — were both up. Until then, India’s government , India’s government would be watchful to take its real figures to have scrap of salt.
Expect Q4 GDP to moderate to 6.4%: Moody’s Speaking to CNBC-TV18, William Foster of Moody’s said that NPA is a prolonged weakness that is still not addressed and there is no clear method in place to resolve the issue.
Brexit bill deferred as Lords espouses EU nationals’ moralities:
The House of Lords voted today to amend and thereby delay a bill empowering Prime Minister Theresa May to begin Brexit negotiations, demanding guarantees for EU nationals living in Britain.Peers voted by 358 to 256 for an amendment requiring ministers protect the rights of more than three million European Union and European Economic Area (EEA) citizens after Britain leaves the bloc.
