According to the central bank, CAD for the quarter ended March 2018 was at $13 bn (1.9 per cent of GDP) as against $2.6 bn (0.4 per cent) in Q4 of 2016 -17, but moderated marginally from $13.7 bn (2.1 per cent of GDP) in the preceding quarter.
The SBI report has said India has only one decade to change its status into a developed country and will need to focus on education, failing which the much-hailed ‘demographic dividend’ will turn into a disadvantage.
Talking about unemployment in the country, Chidambaram said, “So far, nobody has bought the innovative idea that ‘frying pakoras is also a job’.” He also added that demonetisation and GST have had an adverse impact on the Indian economy.
GDP growth rates for pre-2011-12 years, making it impossible to compare the new growth data with the growth during the UPA years.
While the net FPI outflow in April stood at Rs 15,561 crore ($2.35 bn) and Rs 29,775 crore ($4.4 bn) in May, the aggregate for the first five months this year amounted to a net outflow of Rs 32,078 crore ($4.4 bn).
The Nikkei/IHS Markit Services Purchasing Managers’ Index fell to 49.6 in May from April’s 51.4, sinking below the 50-mark that separates growth from contraction.
The country had recorded GDP growth of 7.1 per cent in the previous financial year (2016-17). Growth is projected to rebound to 7.5 per cent this year.
G-20 countries will grow 3.3 per cent in 2018 and 3.2 per cent in 2019, the rating agency said.
Elevated prices of metals, crude oil and other commodities have driven up revenues.
Importers are hit, exporters have gained; foreign holidays and education abroad are costlier. With international crude prices rising and India’s trade deficit widening, the economy is badly impacted.
The study calculated that approximately 220 million consumers meet the target age range — from 20 to 69 — and minimum income level, which is assumed as at least Rs 2,50,000 per year, to be attractive to lenders for retail credit products.
For FY18, the Gross Domestic Product (GDP) is estimated to grow at 6.6 per cent, as per the second advance estimate of the Central Statistics Office.
The auto and FMCG staples packs seem to be back on track after the disruptions from demonetisation and GST.
An unfavourable base effect also pushed WPI inflation higher. In the WPI data, inflation rate for food articles rose to 0.87% in April against deflation of 0.29% in last month.
Despite unfavourable base effect, indicators like CIL, auto outputs and consumption of petrol grew over 8 per cent in March.