Skip to content
Search

Latest Stories

Asian Development Bank revises its growth outlook for India

THE Asian Development Bank (ADB) has revised its outlook for India’s economy, with growth now expected at 6.5 per cent in the financial year (FY) 2019.

In an update released today (25) of its flagship economic publication, Asian Development Outlook (ADO) 2019, ADB said proactive policy interventions along with a recovery in domestic demand and investments will likely see the economy pick up in the financial year (FY) 2020, growing by 7.2 per cent.


In July, ADB had forecast 7 per cent growth for FY2019 and 7.2 per cent in FY2020.

The latest revision came following weaker expansion in the first quarter of the year with slower growth in consumption and investment affecting the manufacturing and service sectors.

ADB Chief Economist Yasuyuki Sawada said: “India will remain one of the fastest-growing economies in the world this year and next year, as the government continues to implement policy reforms and interventions to strengthen economic fundamentals.”

Significant corporate tax cuts announced by the government on September 20 will uplift private investment, including foreign direct investments, and enhance India’s global competitiveness, the lender said.

Bank recapitalisation, support measures for non-banking financial companies, and cuts in monetary policy rates should improve the health of the financial sector while increasing the credit flow to industry and infrastructure projects.

Other measures, such as tax relief for low-income taxpayers and reduced loan interest rates are expected to boost rural and urban consumption across the country.

Fast-tracking of goods and services tax refunds should provide an impetus to small- and medium-sized firms that have been constrained by a shortage of working capital. The implementation of these measures will brighten prospects for India’s economy in FY2020.

Risks remain tilted to the downside given the weak global economy and, on the domestic front, there will be a lag between growth-enhancing measures and the impact on demand.

Indian exports are likely to be hit by subdued overseas demand and rising trade tensions, and the current account deficit will be 2.2 per cent in FY2019 and 2.5 per cent in FY2020.

Foreign direct investment could get a boost in FY2019 and FY2020 as the trade tensions between the US and China may push some businesses to move part of their operations to India.

To capitalise on this, the government would do well to improve investment climate and further liberalise investment regulations, the report says.

Inflation will begin for FY2019 and FY2020 at 3.5 per cent and 4 per cent, respectively, both within the central bank target range, as food prices remain stable.

More For You

UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy grew 0.7 per cent in Q1 2025, fastest in a year

THE UK economy expanded at its fastest pace in a year during the first quarter of 2025, driven by a rise in home purchases ahead of a tax deadline and higher manufacturing output before the introduction of new US import tariffs.

Gross domestic product rose by 0.7 per cent in the January-to-March period, the Office for National Statistics (ONS) said, confirming its earlier estimate. This was the strongest quarterly growth since the first quarter of 2024.

Keep ReadingShow less
Rosneft in early talks to sell India refinery stake to Reliance

Reliance Industries chairman Mukesh Ambani (Photo: Getty Images)

Rosneft in early talks to sell India refinery stake to Reliance

RUSSIAN oil major PJSC Rosneft Oil Company is in early discussions with Reliance Industries to sell its 49.13 per cent stake in Nayara Energy, an Indian energy company that operates a 20-million-tonnes-per-year oil refinery and 6,750 petrol pumps, sources familiar with the matter said.

The deal, if finalised, would see Reliance overtake state-owned Indian Oil Corporation (IOC) to become India’s largest oil refiner. It would also provide Reliance with a significant expansion in fuel retailing, where it currently holds a relatively small presence.

Keep ReadingShow less
modi-trump-getty
Trump shakes hands with Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Key issues in India, US trade talks

TRADE talks between India and the US have hit a roadblock over disagreements on duties for auto components, steel and farm goods, Indian government sources said to Reuters, dashing hopes of reaching an interim deal ahead of president Donald Trump's July 9 deadline to impose reciprocal tariffs.

Here are the key issues at play:

Keep ReadingShow less
Anil Agarwal

Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)

Getty Images

Anil Agarwal’s Vedanta Resources signs £438 million refinancing deal

VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.

The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.

Keep ReadingShow less
Trump-Getty

Trump said that while deals are being made with some countries, others may face tariffs.

Getty Images

Trump says major trade deal with India may be finalised soon

US PRESIDENT Donald Trump on Friday said a "very big" trade deal could be finalised with India, suggesting significant movement in the ongoing negotiations between the two countries.

“We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India," Trump said at the “Big Beautiful Bill” event at the White House.

Keep ReadingShow less