28
Wednesday
October 2020
11:21 PM IST
News Headlines
AC Milan's perfect start ends with 3-3 draw with Roma        Feels surreal, says Varun Chakravarthy on his surprise India call-up        Rohit unlikely as Mumbai and RCB aim to secure play-off berth        Vistara to start flights to Bangladesh from Nov 5 under air bubble pact        Sharing best practices, knowledge among SCO members to help startups: Goyal        Taiwan says new arms purchases to boost credible defence        President Donald Trump ahead of Joe Biden by 5 points in Texas: Poll        Pak to strengthen ties with Afghanistan: PM Imran        Loan moratorium: Lenders to credit interest on interest' to borrowers by Nov 5, Centre tells SC        Man attacks TV actress with knife in Mumbai        Polls open in first phase of Bihar elections        After over 3 months, less than 40k COVID cases reported in single day across country: Govt data        India, US ink defence pact; Pompeo says US stands with India, mentions killing of Indian soldiers        'Dynastic corruption' growing challenge for the country: PM Narendra Modi        Former Union Min Dilip Ray gets three-yr jail in coal scam case        Bihar assembly election Campaign ends for first phase        Kerala CM writes to counterparts in Maha, TN        COVID 19: Kerala registers 7,101 recoveries, 20 deaths        Govt announces financial package for rejuvenation of KSRTC        COVID-19 vaccination to begin in Venezuela Around April - President Maduro        
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Kerala News
India's GDP expected to contract by 9.6 per cent this fiscal: World Bank
 
Washington, Oct 8 (PTI) The World Bank on Thursday said that India's GDP is expected to contract by 9.6 per cent this fiscal which is reflective of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic, noting that the country's economic situation is much worse than ever seen before.

The Washington-based global lender, in its latest South Asia Economic Focus report ahead of the annual meeting of the World bank and International Monetary Fund, forecasts a sharper than expected economic slump across the region, with regional growth expected to contract by 7.7 per cent in 2020, after topping six per cent annually in the past five years.

India's GDP is expected to contract by 9.6 per cent in the fiscal year that started in March, the World Bank said in the report released here.

Regional growth is projected to rebound to 4.5 per cent in 2021, it said.

Factoring in population growth, however, income-per-capita in the region will remain 6 per cent below 2019 estimates, indicating that the expected rebound will not offset the lasting economic damage caused by the pandemic, it said.

The situation is much worse in India than we have ever seen before, Hans Timmer, World Bank Chief Economist for South Asia told reporters during a conference call.

It is an exceptional situation in India. A very dire outlook, he said.

There was a 25 per cent decline in GDP in the second quarter of the year, which is the first quarter of the current fiscal year in India.

In the report, the World bank said that the spread of the coronavirus and containment measures have severely disrupted supply and demand conditions in India.

With the intent to contain the spread of COVID-19, Prime Minister Narendra Modi, with effect from March 25, announced a nationwide complete lockdown that brought as much as 70 per cent of economic activity, investment, exports and discretionary consumption to a standstill. Only essential goods and services such as agriculture, mining, utility services, some financial and IT services and public services were allowed to operate.

Dubbed as the world's biggest lockdown, it shut a majority of the factories and businesses, suspended flights, stopped trains and restricted movement of vehicles and people.

According to the World Bank, monetary policy has been deployed aggressively and fiscal resources have been channeled to public health and social protection, but additional counter-cyclical measures will be needed, within a revised medium-term fiscal framework.

Despite measures to shield vulnerable households and firms, the trajectory of poverty reduction has slowed, if not reversed, it said.

We have seen from the rapid survey that many people have lost their jobs, Timmer said, adding that this is happening against a background when India's economy was already slowing down before the pandemic.

We had seen a rise in non-performing loans. Those are all vulnerabilities that India has to deal with, he said.

Responding to a question, Timmer said what the Indian government has done with limited resources and limited fiscal space is very impressive.

We have seen a loosening of monetary policy. You have seen attempts to increase credit to the private sector to help a company survive, he said, adding that there have been big efforts in the health sector and expansion of a social safety net.

But with every big crisis, I think, we have to realise that this will not go over anytime soon. And it will actually change the longer-term future also. What this reveals is really as good as federal policies, especially the policies related to the informal sector.

There's a big problem that the informal sector has no coverage in social insurance. What we see now is that especially the informal workers in the middle of the income distribution have lost their jobs. There are no systems in place to support those people, Timmer said.

Responding to another question, Timmer said that as a result of COVID-19, the World Bank estimates that in one year, the number of people living below the poverty line has increased by 33 per cent.

In its report, the World Bank said that the response of the government of India to the COVID-19 outbreak was swift and comprehensive. A strict lockdown was implemented to contain the health emergency.

To mitigate its impact on the poorest, it was complemented by social protection measures; to ensure that businesses could maintain their operations, the Reserve Bank of India and the government also provided liquidity and other regulatory support, it said.

Nonetheless, there was a massive contraction in output and poor and vulnerable households experienced significant social hardships specifically urban migrants and workers in the informal economy, the bank said.

After fiscal 2017, during which the economy grew at 8.3 per cent, growth decelerated in each subsequent year to 7.0, 6.1 and 4.2 per cent.

This was on account of two mutually reinforcing dynamics: emerging weaknesses in non-bank financial companies (a major source of credit growth, making up for risk aversion from banks) and slowing private consumption growth, the bank added.


Kerala CM writes to counterparts in Maha, TN
COVID 19: Kerala registers 7,101 recoveries, 20 deaths
Kerala Congress P C Thomas faction likely to join UDF
Seaplane to be used for flights between Sabarmati riverfront, Statue of Unity reaches Kochi
Kerala''s COVID-19 tally rises to 3.79 lakh with 6,843 fresh cases
Gold smuggling:Kerala HC restrains ED, Customs from arresting Sivasankar till October 28
Kerala''s active cases nearing one lakh mark; Toll mounts to 1,281
KC (M) Jose K Mani faction formally inducted into CPI-M-led LDF in Kerala
Kerala reports 7,482 fresh COVID-19 cases as tally breaches 3.50 lakh mark
Ex-Mizoram guv and senior BJP leader Kummanam Rajasekharan, 8 others booked in cheating case
Suspended IAS officer Sivasankar feigned illness: Customs tells HC
Kerala adds 6,591 fresh coronavirus cases, 24 deaths push toll to 1,206
Kerala''s Covid tally touches 3.33 lakh with 5,022 fresh cases
Jnanpith awardee Akkitham Achuthan Namboothiri dead
Kerala''s COVID-19 count crosses three lakh mark with 8,764 fresh cases
NCP welcomes Mani to LDF but not at cost of Pala seat
Abdullakutty file complaints in police stations over alleged conspiracy to murder him
Gold smuggling case : 3 accused admit to crime ; NIA seeks extension of custody period to 180 days
Kerala adds 9,250 new COVID-19 cases, 25 deaths take toll to 955
2 Navy personnel killed as glider crashes in Kochi
ENTERTAINMENT NEWS
My whole life has been a miracle: Rajinikanth
 Mumbai: From starting out as a bus conductor to becoming one of the biggest stars of the: country,  
'Game of Thrones' star Indira Varma tests positive for coronavirus
Coronavirus: Release of Ranveer Singh-starrer '83' put on hold
'Joker' earns Joaquin Phoenix his maiden Oscar
INTERNATIONAL NEWS
Taiwan says new arms purchases to boost credible defence
 Taipei, Oct 27 (AP) Taiwan said Tuesday that proposed US sales of missiles and other arms systems wi
President Donald Trump ahead of Joe Biden by 5 points in Texas: Poll
Pak to strengthen ties with Afghanistan: PM Imran
COVID-19 vaccination to begin in Venezuela Around April - President Maduro
NATIONAL NEWS
Loan moratorium: Lenders to credit interest on interest' to borrowers by Nov 5, Centre tells SC
 New Delhi, Oct 27 (PTI) The Centre has informed the Supreme Court that lenders have been directed to
Man attacks TV actress with knife in Mumbai
Polls open in first phase of Bihar elections
Former Union Min Dilip Ray gets three-yr jail in coal scam case
Untitled Page
Rashtra Deepika LTD
Copyright @ 2020 , Rashtra Deepika Ltd.