Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2018        Go!    
 
 
May 24, Thursday 2018 5:35 AM       

       HEADLINES: Actor Vijayan Peringode dies                                              Efforts to resolve church dispute will continue, says Patriarch Bava                                              All party meet on May 25 in Kozhikode                                              Don't fall prey to Nipah-related rumours: Governor                                              Nipah virus outbreak: Suspended Gorakhpur doctor offers help                                              BJP MP Bandaru Dattatreya's son dies of heart attack                                              Kamal Haasan demands Sterlite industry to be shut                                              H D Kumaraswamy swears in as K'taka CM                                              Four Nepali woman journalists scale Mount Everest                                              Trump-Kim meeting set to take place on June 12: Pompeo                                              Corruption cases result of high treason case instituted against Musharraf: Sharif                                              Ode to ABD: When 360 degree was not geometry but joy                                              AFI names 51-member team for Asian Junior Athletics                                              'Tired' AB De Villiers retires from international cricket                                              Kaumudi Facebook
       BUSINESS Next Article: Sensex slides 113 pts as RBI holds policy rate  
       RBI lowers economic forecast to 6.6% for FY18
 
         Posted on :17:16:37 Feb 7, 2018
   
A A
       Last edited on:17:16:37 Feb 7, 2018
         Tags: RBI lowers economic forecast to 6.6% for FY18
 

MUMBAI: The Reserve Bank today lowered the economic growth projection for 2017-18 to 6.6 per cent, but said that it will accelerate to 7.2 per cent in the next financial year as the roll-out of GST stabilises and credit offtake improves.

The statement issued after the 2-day meeting of the 6-member Monetary Policy Committee (MPC) of the Reserve Bank of India also said that recapitalisation of public sector banks along with resolution of stressed assets under the Insolvency and Bankruptcy Code (IBC) will create demand for fresh investments.

"GVA (Gross Value Added) growth for 2017-18 is projected at 6.6 per cent," it said.

In the December policy review, MPC had forecast that the GVA would expand by 6.7 per cent.

For the next fiscal, 2018-19, the central bank said that the implementation of the Goods and Services Tax (GST), rolled out on July 1 last year, is stabilising and augurs well for economic activity.

"There are early signs of revival in investment activity as reflected in improving credit offtake, large resource mobilisation from the primary capital market, and improving capital goods production and imports," it said.

Further, the process of recapitalisation of public sector banks has gotten underway and large distressed borrowers are being referenced for resolution under the IBC, it said.

"This should improve credit flows further and create demand for fresh investment," the RBI said, adding that export growth is expected to improve further on account of improving global demand.

RBI said that GVA expansion in 2018-19 is projected at 7.2 per cent overall "in the range of 7.3-7.4 per cent in H1 and 7.1-7.2 per cent in H2" with risks evenly balanced.

The MPC noted that the economy is on a recovery path, including early signs of a revival of investment activity, the RBI said. Also, global demand is improving, which should help strengthen domestic investment activity.

"The focus of the Union Budget on the rural and infrastructure sectors is also a welcome development as it would support rural incomes and investment, and in turn provide a further push to aggregate demand and economic activity," it said.

The MPC has flagged the deterioration in public finances risk crowding out private financing and investment as a "downside" to the growth outlook.

A A
       BUSINESS
Next Article: Sensex slides 113 pts as RBI holds policy rate
 
 
BUSINESS HEADLINES
Rupee turbulence sharpens, plunges 38 paise to 68.42 a dollar  
Oil stocks under pressure; slip up to 8%  
Fuel price can be controlled by reducing VAT: Petrol dealers  
Fuel price hike: Centre to intervene, to hold talks with oil companies  
Sensex opens in green on value-buying, up 83 points  
Price of petrol touches Rs. 81 per litre in Thiruvananthapuram  
Sensex down 97 points, Nifty below 10,600  
Sensex up 126 points on Asian cues  
Date market sees decline in demand due to GST this Ramzan  
Fuel prices go up again  
India on path of development of tax collection, domestic capabilities  
Less oil production in OPEC affects fuel price: Pradhan  
Petrol, diesel touch all-time highs as oil companies hike rates  
PriceMap offers India's first product and price discovery platform for offline retail  
Birla Corporation, EBIDTA  
Despite challenging times, global business growth is on the rise, finds Epicor  
Despite challenging times, global business growth is on the rise: Epicor  
Sensex sinks 300 pts to close below 35k-mark  
Petrol, diesel prices skyrocket  
Horlicks creates a new Guinness World Record for making largest glass of milkshake  
April exports jump 5.17% to $25.91 bn, imports rise 4.6%  
Sensex tanks 239 pts in nervous trade  
Won't apply for top job at Bank of England: Raghuram Rajan  
Sensex climbs 122 pts in early trade  
Andhra FM to meet President over 15th Finance Commission's ToR tomorrow  
 
Will GST help decrease the petrol price?
yes
 
no
 
don't know
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy