The Prime Minister said the world’s expectations from India has increased, and the corporate sector must take advantage of the trust that India has gained across the world during the coronavirus crisis.
Prime Minister Narendra Modi gave a speech at Confederation of Indian Industry's (CII) Annual Session 2020- “Getting Growth Back”.
Moody's expects India's real GDP growth rate to contract by 4 per cent in 2020-21 due to the shock from the coronavirus pandemic and related lockdown measures.
“The latest reading pointed to another substantial decline in the health of the Indian manufacturing sector, albeit one that was slightly softer than recorded in April,” IHS Markit said.
In a bid to boost the MSME sector in the country, the cabinet committee on Monday announced multiple steps taken by the government and added Rs 20,000 crores of infusion into the sector.
The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, increased to 30.8 last month from April's record low of 27.4, still well below the 50-mark separating growth from contraction.
The return of FPIs comes after they pulled out a massive Rs 61,973 crore from equities in March and Rs 6,883 crore in April amid fears of a coronavirus-induced global recession.
The rise in foreign exchange reserves have resulted into strengthening in the value of the rupee against the US dollar.
While the overall non-food credit growth contracted by 1.2 per cent, or Rs 1.10 lakh crore to Rs 91 lakh crore, loan outstanding in the personal loan segment fell by 2.50 per cent to Rs 24.90 lakh crore, a decline of around Rs 63,000 crore.
Sources indicated that as of now there is no proposal to reduce GST rate on essential items, even as it is ultimately GST Council which will take any decision on changing the tax rates and not just the central government.
This was the highest level of deficit for the Centre since FY13.
The downward spiral has been accentuated by the lockdown that was enforced since late March to tackle the spread of Covid-19 pandemic, with most economists projecting that the Indian economy will record a contraction in GDP this year, while any recovery is expected to be long drawn process.
If goods and services tax (GST) rates are increased on non-essential items, sources said it will further bring down their demand and impede the overall economic recovery.
Gross Domestic Product (GDP) 4th Quarter Data: The growth in GDP during 2019-20 is estimated at 4.2 per cent, slowing to an 11-year low, as compared to 6.1 per cent in 2018-19.
Singapore emerged as the largest source of FDI in India during the last fiscal with USD 14.67 billion investments.
"We have lowered our growth forecast for fiscal year ending March 2021 to a 5 per cent contraction... We currently assume that the outbreak peaks by the third quarter," S&P said in a statement.
Chief Economic Adviser Krishnamurthy Subramanian said it is difficult to make a reliable estimate on growth given the kind of uncertainty resulting from effects of COVID-19 pandemic.
According to the SBI’s research report ‘Ecowrap’, gross domestic product (GDP) growth is likely to be 4.2 per cent for the full year of FY20.
According to the SBI's research report - Ecowrap - the gross domestic product (GDP) growth is likely to be 4.2 per cent for FY20 and (-) 6.8 per cent for FY21.
In an e-Adda hosted by The Indian Express, Nitin Gadkari, Union Minister of Road, Transport & Highways and MSME, spoke on clearance of dues to MSMEs, how to get demand back in the market and restarting industry.