Come to India, if there’s any gap I’ll act as bridge: Modi tells investors

India is a unique combination of four factors: democracy, demography, demand, decisiveness, said the PM

Prime Minister (PM) Narendra Modi on Wednesday pitched India as ‘the’ investment destination for global investors, saying reforms by his government were just the beginning of a long innings. Modi promised to personally act as a bridge for businesses and said India had a government that respected corporates and wealth creators.

“India’s growth story has four important factors that are rare to find anywhere else in the world. These factors are democracy, demography, demand, and decisiveness,” he said. “Democracy together with political stability, predictable policy and independent judiciary gives confidence of safety and security of investment and of growth,” he said, speaking at the Bloomberg Global Business Forum in New York.

The PM Narendra Modi said his government’s decision to slash corporate tax rates was a “big revolutionary step” for investment, and that the move had been hailed by businesses as historic.

“If you want to invest in a market where there is scale, come to India,” Modi said. “If you want to invest in a market where the latest trends and features are appreciated, come to India. If you want to invest in start-ups with a huge market, come to India. If you want to invest in one of the world’s largest infrastructure ecosystem, come to India.” India, he said, was waiting for global investors. “India is your only destination. I am waiting to welcome you,” he said….

RBI balance sheet must be strong, says Bimal Jalan committee report

To maintain resilience, the committee suggested a relatively smaller transfer than what was anticipated.

The Reserve Bank of India’s (RBI’s) balance sheet should be strong enough to support banks if there is a need to recapitalise them during a financial crisis, said the report of the committee to review the economic capital framework (ECF) of the central bank.

India, with one the lowest sovereign ratings, and not having a reserve currency to boot, should not think that risky actions by the government would still be as safe as advanced economies, said the panel headed by former RBI governor Bimal Jalan.

“The fact that ELA (emergency liquidity assistance) operations by the AE (advanced economy) central banks did not result in losses for them should not draw the central banking community into any false sense of complacency about the riskiness of such actions,” the report, released on the RBI website on Tuesday, said. “Had the AEs, which are ‘issuers of reserve currencies’, not followed up their ‘qualitative easing’ programmes with the very significant ‘quantitative easing’, it is possible that their ELA operations could have ended very differently.”

As a stark warning to the government, which now seems to be depending upon the RBI transfers to bridge the fiscal deficit, the committee said the centre’s manoeuvrability on recapitalisation of commercial banks or of the RBI could be constrained during a financial stability crisis….

World Bank retains projections for India’s economic growth at 7.5%

For the current fiscal year, the growth is quite high, given the fact that India’s economy grew just 6.8 per cent in 2018-19, a five-year low

After the feeble total national output (GDP) information, India has something to cheer about. The World Bank has held projections for India’s monetary development at 7.5 percent for the current financial year even as it cut worldwide monetary extension by 0.3 rate focuses. In its Global Economic Prospects report, the World Bank, be that as it may, pegged the development at a similar pace of 7.5 percent for the following two financial years.

For the current monetary year, the development is very high, given the way that India’s economy became simply 6.8 percent in 2018-19, a five-year low. Likewise, the development dove to 5.8 percent in the final quarter of the financial year, additionally a five-year base. Additionally, the International Monetary Fund (IMF) had prior sliced financial development of India to 7.3 percent from prior projection of 7.5 percent. The Asian Development Bank (ADB) pegged the development at 7.2 percent.

World Bank holds projections for India’s financial development at 7.5%

Without naming Pulwama fear assault and Balakot strike, the Bank made a reference to these episodes among India and Pakistan. “Engagements among India and Pakistan in February are an update that dormant geopolitical pressures can erupt whenever,” the Bank said. The Bank said venture rate in India was relied upon to develop at a slower pace in 2019 than in 2018. It, in any case, said speculation development was relied upon to stay strong as advantages of ongoing strategy changes additionally appeared.

“Private utilization and speculation will profit by fortifying credit development in the midst of progressively accommodative money related approach, with expansion having fallen underneath the Reserve Bank of India’s objective,” it said.

Demonetisation's failure won't hurt PM Modi, he's already changed the narrative

Modi has learnt never to engage with his opponents and a hapless Opposition is trying to keep up

 

economy news:APCO Worldwide, a transnational public relations company, had their most apt pupil in then Gujarat chief minister Narendra Modi. The one thing Modi learnt was never to engage with his opponents on issues they want to talk about. He sets the agenda and a hapless opposition and media try to keep up. Demonetisation was a Modi-made disaster. Yet the disaster only served to propel Modi to greater electoral heights, and today, as he towers over a clueless opposition, even the return of 99% of the extinguished notes does not change the narrative of one man’s fight against corruption.

Modi had made an emotional pitch on demonetisation – “Give me 50 days, then punish me if I am wrong” – which was the lead story in all newspapers. Today who remembers that? Modi has moved on from “acche din” to “new India” and, like the Pied Piper, carried a mesmerised UP electorate with him. He swept the UP assembly, anointed Adityanath as chief minister and could not care less about what the opposition and media will now say.

ALSO READ: GDP growth hits 3-year low of 5.7%, slowest under Modi govt

Former Prime Minister Manmohan Singh had called demonetisation “an organised loot and legalised plunder”, and the venerable economist had a point. Modi, however, used demonetisation as a chance to reinvent himself as a “messiah of the poor”. The only jibe that struck home was Rahul Gandhi’s comment of a “suit boot ki sarkar” after Modi aired his Holland and Sherry Rs 10 lakh suit (with his name pinstriped on it) in his meeting with former US President Barack Obama.

The suit was auctioned off; the godmen and friends of the BJP are still present and in action; yet, with the demonetisation gamble, Modi achieved his aim.

ALSO READ: 99% of banned notes returned after demonetisation: RBI annual report

Modi and his closest aide, Amit Shah, are a ruthless-election winning combine. They give no quarter and expect none. No niceties of politics are maintained and the BJP has been transformed into a formidable election-fighting machine, modelled from the booth level upwards on the Congress of the 1950s. Modi himself is on 24/7 campaign mode. Consider this: until the Gujarat election later this year, he will make weekly trips to the state.

A senior member of the cabinet told me, “We are quiet in cabinet but occasionally the prime minister scoffs at the media. The opposition is never discussed as they have become irrelevant”.(READ FULL STORY)