India’s economic growth is expected to pick up faster than the rest of the world once a global revival begins, though it is difficult to predict when, the country’s central bank governor was quoted as saying.
In an interview with BBC World broadcast on Sunday, taken before he left for a meeting of G20 in London, RBI governor D Subbarao said Asia’s third biggest economy could be an engine for global growth.
“India can be a growth engine. Not that India can recover ahead of the world. But when recovery starts, India’s recovery is going to be sharp and rapid,’’ Subbarao said.
In January, the IMF cut its forecast for global growth in 2009 to a slight 0.5% — the weakest since World War II — from a November estimate of 2.2%.
Even though India’s exports account for 14% of its GDP, much lower than some of its Asian peers, Subbarao said the global crisis has hit the Indian economy through the financial and manufacturing sectors, and said it was difficult to predict the timing of the recovery.
The Indian economy has slowed sharply as exports were hit and consumer sentiment was dented. It is expected to expand at a six-year low of 7.1% from an average rate of around 9% in the last three years.
Subbarao said India’s financial sector remains sound, safe and well capitalized and this was because of prudent policy actions taken by the government and the central bank.
Since the global crisis hit India’s shores in September authorities have rolled out two stimulus packages, duty and rate cuts with the latest rate cut just last week to shore up growth.
G20 finance ministers on Saturday promised the IMF money to help troubled countries and said they would use their full fiscal and monetary firepower to combat the worst economic crisis since the 1930s. Subbarao said India has gained from globalisation and would not turn away from it. “Globalisation is a double edged sword. It comes with benefits and costs so I don’t think pulling out of the global system is an option for any country.’’
Agencies
Showing posts with label Emerge. Show all posts
Showing posts with label Emerge. Show all posts
Tuesday, March 17, 2009
Monday, January 5, 2009
India to emerge strong from the global meltdown
The report said India, along with China, Russia and South Korea would emerge stronger from the global financial crisis as they enjoy strong economic foundations, higher growth rates and sound monetary policy measures.
US, China and Japan were ranked first, second and third respectively.
India ranked 19th in terms of budget balance as a percentage of the gross domestic product (GDP) and 12th in terms of public debt as a percentage of the GDP.
The ranking was based on seven economic indicators: size of the economy, spending power, tax structure, interest rate policy, budget balances, debt burden and foreign exchange reserves.
US, China and Japan were ranked first, second and third respectively.
India ranked 19th in terms of budget balance as a percentage of the gross domestic product (GDP) and 12th in terms of public debt as a percentage of the GDP.
The ranking was based on seven economic indicators: size of the economy, spending power, tax structure, interest rate policy, budget balances, debt burden and foreign exchange reserves.
Friday, November 28, 2008
Terror Attacks: Mumbai Will Emerge Stronger!
Each time Mumbai has been the target of a terrorist attack, it rebounds stronger and more resolute.
Mumbai, the commercial capital of India, comes under attack from terrorists yet again, at a time when the world's second-fastest growing economy is seen by many analysts to be a critical part of the solution in fighting a global recession.
Mumbai is one of the world's top 10 centres of commerce and contributes to about 5 percent of India 's GDP and accounts for 25 percent of the industrial output, 40 percent of maritime trade, and 70 percent of capital transactions to the economy. Mumbai's per-capita income is Rs. 48,954 ($990) which is almost three times the national average.
"Mumbai is a very resilient city," says Bundeep Singh Rangar, Chairman, IndusView Advisors Ltd., the India-focused cross-border advisory firm. "Each time it's been the target of a terrorist attack, it rebounds stronger and more resolute."
Post the July 11, 2006, Mumbai train bombings, for example, as a show of investor confidence, the Bombay Stock Exchange (BSE) had rebounded, starting the day with the BSE Sensex Index up by nearly 1 percent in morning trade. Foreign investors also retained confidence, with the Sensex up almost 3 percent at 10,930.09 at the end of the day's trade.
However, both the Bombay Stock Exchange and National Stock Exchange were closed today as the security personnel continue with their efforts to nab the terrorists.
India is set to register a strong growth of about 7.5 percent this financial year, a marginal drop from 9 percent that the country achieved last year when compared to emerging markets peer China that will drop to similar level from about 12 percent last year, its lowest since 1990, according to estimates.
This firm footing that the Indian economy finds itself in, has a lot to do with the contribution from Mumbai, its financial capital that brings 40 percent of foreign trade, 60 percent of customs duty collections, 40 percent of income tax collections, 20 percent of central excise tax collections, and Rs. 40,000 crore ($10 billion) in corporate taxes to the Indian economy.
This apart, the city hosts headquarters of a number of Indian financial institutions such as the Bombay Stock Exchange, Reserve Bank of India , National Stock Exchange, the Mint, as well as the corporate headquarters of many large Indian companies, including the three largest private sector companies: Reliance Industries, Tata Group and Aditya Birla Group, and numerous multinational corporations. Most of these offices are located in downtown South Mumbai which is the nerve centre of the Indian economy.
Strategic industries
Mumbai is home to Bollywood, the largest film making industry in the world; the Bhabha Atomic Research Center (BARC), which will see its role gaining significance once the Indo-US civil nuclear deal comes in to force.
Other prominent industry sectors in the city include aerospace, optical engineering, medical research, information technology, computers and electronic equipment, shipbuilding and salvaging, renewable energy and power.
Mumbai, the commercial capital of India, comes under attack from terrorists yet again, at a time when the world's second-fastest growing economy is seen by many analysts to be a critical part of the solution in fighting a global recession.
Mumbai is one of the world's top 10 centres of commerce and contributes to about 5 percent of India 's GDP and accounts for 25 percent of the industrial output, 40 percent of maritime trade, and 70 percent of capital transactions to the economy. Mumbai's per-capita income is Rs. 48,954 ($990) which is almost three times the national average.
"Mumbai is a very resilient city," says Bundeep Singh Rangar, Chairman, IndusView Advisors Ltd., the India-focused cross-border advisory firm. "Each time it's been the target of a terrorist attack, it rebounds stronger and more resolute."
Post the July 11, 2006, Mumbai train bombings, for example, as a show of investor confidence, the Bombay Stock Exchange (BSE) had rebounded, starting the day with the BSE Sensex Index up by nearly 1 percent in morning trade. Foreign investors also retained confidence, with the Sensex up almost 3 percent at 10,930.09 at the end of the day's trade.
However, both the Bombay Stock Exchange and National Stock Exchange were closed today as the security personnel continue with their efforts to nab the terrorists.
India is set to register a strong growth of about 7.5 percent this financial year, a marginal drop from 9 percent that the country achieved last year when compared to emerging markets peer China that will drop to similar level from about 12 percent last year, its lowest since 1990, according to estimates.
This firm footing that the Indian economy finds itself in, has a lot to do with the contribution from Mumbai, its financial capital that brings 40 percent of foreign trade, 60 percent of customs duty collections, 40 percent of income tax collections, 20 percent of central excise tax collections, and Rs. 40,000 crore ($10 billion) in corporate taxes to the Indian economy.
This apart, the city hosts headquarters of a number of Indian financial institutions such as the Bombay Stock Exchange, Reserve Bank of India , National Stock Exchange, the Mint, as well as the corporate headquarters of many large Indian companies, including the three largest private sector companies: Reliance Industries, Tata Group and Aditya Birla Group, and numerous multinational corporations. Most of these offices are located in downtown South Mumbai which is the nerve centre of the Indian economy.
Strategic industries
Mumbai is home to Bollywood, the largest film making industry in the world; the Bhabha Atomic Research Center (BARC), which will see its role gaining significance once the Indo-US civil nuclear deal comes in to force.
Other prominent industry sectors in the city include aerospace, optical engineering, medical research, information technology, computers and electronic equipment, shipbuilding and salvaging, renewable energy and power.
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