Economy in crisis: India’s growth may slow down further to 5.7% in Q1, says report

Agencies
August 21, 2019

Mumbai, Aug 21: India's economic growth is likely to slow down further to 5.7 per cent in the April-June quarter of this year due to low consumption, weak investments and an under-performing service sector, said a Nomura report. The economy, however, is expected to see some recovery in the July-September quarter, the report added.

It attributed the slowdown to the ongoing crisis in shadow banks, which were funding the consumption drive before liquidity crisis hit them hard last September, as well as weakening global growth and the resultant demand slump.

"The Indian economy is likely to slow down further to 5.7 per cent in April-June from a five-year low of 5.8 per cent in January-March," Nomura analysts Sonal Varma and Aurodeep Nandi said in their client note

"High-frequency indicators continue to show familiar pain points -- a deep contraction in consumption, weak investment, a slowing external sector and an under-performing services sector," they said.

"The growth momentum is likely to pick up in the September quarter to 6.4 per cent and go further to 6.7 per cent in the three months after that," said Nomura citing data from its proprietary tools. "We will watch coming data prints to see whether they confirm or negate the sustainability of the turnaround in the growth cycle," it added.

But the brokerage firm also said the industry and investment indicators are relatively stable. "We believe the GDP is yet to bottom out, and expect it to moderate to 5.7 per cent in the June quarter, down from 5.8 per cent in the March quarter," the note said.

The report added that some indicators were showing early signs of bottoming out. The July data shows improvement in 53 per cent of the indicators as compared to 31 per cent in June, the report noted.

Nomura's Composite Leading Index (CLI) for Q3 (July-September) has ticked marginally higher to 99.9 from 99.8 in Q2, led by higher industrial production growth, an improvement in visitor arrivals growth, equity markets and lower policy rates.

"While the concurrent state of the economy remains a concern, nascent signs of green shoots and positive performance of leading indicators provide some signs that a recovery may be slowly materialising," said the Nomura report.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 11,2024

1devarajG.jpg

Karnataka: BJP leader and advocate G Devaraje Gowda was arrested in connection with a sex abuse video allegedly belonging to Hassan JD(S) MP Prajwal Revanna.

According to police, Devaraje Gowda was arrested at Gulihal tollgate by the Hiriyur police in this district on Friday night for leaking the video in a pen drive.

He was arrested on a tip-off received by the Hassan police, which wanted his presence for the case.

Several explicit videos involving Prajwal started making the rounds ahead of the first phase of Lok Sabha elections in Karnataka, which took place on April 26.

The MP, a grandson of former prime minister H D Deve Gowda, is absconding and a 'blue corner' notice has been issued against him by Interpol.

Three FIRs, including charges of rape, molestation, intimidation, blackmailing and threatening, have been registered against Prajwal.

Devaraje Gowda is accused of leaking these videos, which he has categorically rejected.

He contested in the 2023 Assembly elections against JD(S) MLA from Holenarasipura H D Revanna.

H D Revanna, father of Prajwal, is at present in jail on charges of kidnapping a woman, a mother of three.

Ahead of polls, Devaraje Gowda had warned BJP’s central leadership against backing Prajwal Revanna and brought his sex scandal to light.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 3,2024

boat.jpg

Mangaluru: The passenger vessel service between Lakshadweep and Mangaluru has recommenced operations with the arrival of Parali, a high-speed craft, at the Old Mangaluru Port on Thursday, May 2 

With 160 passengers on board, along with a pilot, a ship engineer, an assistant, and eight labourers, the arrival of the vessel brings hopes of reinstating this vital transportation link.

The passengers were welcomed by Congress brass. The vessels that used to arrive before the Covid-19 pandemic took 13 hours to reach Mangaluru from Lakshadweep. However, the introduction of the high-speed craft, Parali, has reduced the travel time to approximately seven hours, said Abubakar Ashraf Bengre.

Bengre is part of a team that has been instrumental in liaising with the authorities of both Lakshadweep and Karnataka to facilitate the revival of this service. He told reporters that the service would bring better economic activity to Mangaluru. 

Over recent months, discussions have been held with Hamdullah Sayeed, president, Lakshadweep Congress Committee, as well as Karnataka Speaker UT Khader and district minister Dinesh Gundu Rao, to garner support for the reintroduction of the service.

The passengers who arrived mostly sought medical treatment, went shopping or met relatives here. They said that they traveled for Rs 450. Former MLA J R Lobo said that they will urge the government to ensure regular vessel services continue.

The passenger service was discontinued due to a lack of demand, it is learnt. In the year 2018-19, 4,955 passengers embarked and 7,422 disembarked from the Old Mangaluru Port. Subsequently, the figures declined to 3,779 (embarked) and 2,294 (disembarked) in 2019-20. The numbers further plummeted to 561 (embarked) and 19 (disembarked) in 2020-21, leading to the suspension of the service.

At present, the administration of the Union Territory of Lakshadweep has released a schedule for high-speed craft movement from April 29 to May 5.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 8,2024

sampitroda.jpg

Congress leader Sam Pitroda has stepped down from the post of Chairman of the Indian Overseas Congress and his resignation was accepted by the party. Congress leader Jairam Ramesh took to X and announced that Sam Pitroda had decided to resign from the key post "of his own accord".

Pitroda had been under fire over his controversial remark that Indians in the East resemble the Chinese while those in the South look like Africans.

"We could hold together a country as diverse as India -- where people on East look like Chinese, people on West look like Arab, people on North look like maybe White and people in South look like Africans. It doesn't matter. We are all brothers and sisters," Pitroda said during an interview with The Statesman.

The Congress immediately distanced itself from Pitroda's remarks, terming them "unacceptable".

"The analogies drawn by Mr Sam Pitroda in a podcast to illustrate India's diversity are most unfortunate and unacceptable. The Indian National Congress completely dissociates itself from these analogies," Jairam Ramesh said in a post on X.

The BJP also hit out at the Congress over Pitroda's remarks and termed them "racist and divisive".

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.