India’s growth is expected to rebound to 7.2 per cent in the 2017–18 fiscal and 7.7 per cent in 2018-19 after “disruptions” caused by demonetisation, the IMF said today, while recommending removal of long-standing “structural bottlenecks” to enhance market efficiency.
The temporary disruptions (primarily to private consumption) caused by cash shortages accompanying the currency exchange initiative are expected to gradually dissipate in 2017 as cash shortages ease, the International Monetary Fund said in its regional economic outlook. Such disruptions would also be offset by tailwinds from a favourable monsoon season and continued progress in resolving supply-side bottlenecks, the IMF said.
The investment recovery is expected to remain modest and uneven across sectors as deleveraging takes place and industrial capacity utilisation picks up, it noted.
“In India, growth is projected to rebound to 7.2 per cent in FY2017–18 and further to 7.7 per cent in FY2018–19,” the IMF said.
“Headwinds from weaknesses in India’s bank and corporate balance sheets will also weigh on near-term credit growth. Confidence and policy credibility gains, including from continued fiscal consolidation and anti-inflationary monetary policy, continue to underpin macroeconomic stability."
The IMF maintains a positive outlook on the Indian economic growth and is confident that the Goods and Services Tax (GST) implementation will be smooth.
“India is one of the countries that have excellently performing reforms and that is one of the major reasons for the country to maintain one of the highest economic growth rates (in the world),” said Changyong Rhee, director for Asia and Pacific Department at IMF at a press conference in Singapore after presenting Asia and Pacific Regional Outlook report.
Touching on GST, he said: “We have been working very closely with India in preparing the introduction of GST. I am very confident that India has prepared the GST introduction in the past couple of years.”
He pointed out that implementation of such tax system remains very challenging especially preparation of system integration between the government and the business sectors.
He stressed that such implementation would not be easy and there would be hiccups, adding that the IT system has to be well prepared and well implemented.
“But based on the Indian government’s preparation for the last couple of years, we believe that it is going to be smooth,” he said.
He pointed out that there have been several countries that have implemented GST systems recently.
On other sector’s performance, the report noted that following the demonetisation, there has been a massive increase in liquidity in the banking system which can reduce banks’ funding costs and lead to a decline in banking lend rates.
But it cautioned about further buildup of non-performing loans, including among private banks and elevated corporate sector vulnerabilities. It called for ensuring prudent support to the affected economic sectors in the country.
According to the report, growth in Asia is forecast to accelerate to 5.5 per cent in 2017 from 5.3 per cent in 2016. Growth in China and Japan is revised upward for 2017 compared to the October 2016 World Economic Outlook, owing mainly to continued policy support and strong recent data.
Growth is revised downward in India due to temporary effects from the currency exchange initiative and in South Korea owing to political uncertainty. Over the medium term, slower growth in China is expected to be partially offset by an acceleration of growth in India, underpinned by key structural reforms.
According to the report, in India, improving productivity in the agriculture sector, which is the most labour-intensive sector and employs about half of Indian workers, remains a key challenge.
More needs to be done to address long-standing structural bottlenecks and enhance market efficiency, including from liberalising commodity markets to giving farmers more flexibility in the distribution and marketing of their produce, which will help raise competitiveness, efficiency, and transparency in state agriculture markets, it said.
In addition, input subsidies to farmers should be administered through direct cash transfers rather than underpricing of agricultural inputs, as such subsidies to the agriculture sector have had large negative impacts on agricultural output, IMF said.
Uber warns Home Office rules targeting illegal gig economy workers could increase takeaway delivery costs in the UK.
Undocumented migrants have historically used food delivery apps for work, exploiting limited right-to-work checks.
Companies like Uber Eats, Deliveroo, and Just Eat have introduced stricter checks, including facial recognition and document verification.
Compliance and administrative costs have contributed to a fall in Uber UK profits despite rising revenues.
Government enforcement includes thousands of interviews and hundreds of arrests for suspected illegal working.
Uber’s UK accounts at Companies House welcomed the Home Office’s efforts to deter migrants and people smugglers from risking Channel crossings. However, the company cautioned that “new legislative requirements could have an adverse impact on our business, including expenses necessary to comply with such laws and regulations.”
Takeaway apps have become a source of employment for undocumented migrants, attracted by historically limited right-to-work checks. Delivery riders have sometimes sold or rented their accounts on social media to “substitutes” who may be working illegally.
Company response and compliance measures
Over the past year, Uber, Deliveroo, and Just Eat have introduced stricter “right-to-work” verification, including enhanced facial recognition and document checks. Thousands of workers who failed these checks have been removed from the platforms.
The Home Office has urged delivery companies to strengthen monitoring to prevent misuse and suspend accounts where illegal work is detected. Officials are also sharing data on asylum accommodation to help companies monitor potential illegal employment.
Impact on Uber UK’s finances
Uber’s UK revenues increased from £5.3bn in 2023 to £6.5bn in 2024, but profits fell from £29.4m to £21.6m. The company cited rising administrative and compliance costs in its food delivery division as a key factor.
In February, Uber reported blocking thousands of accounts since April 2024 after introducing tougher right-to-work checks to prevent illegal substitutions.
Government enforcement figures
In July, Home Office immigration enforcement teams spoke to 1,780 individuals, resulting in 280 arrests for suspected illegal working. The asylum status of 53 individuals is currently under review.
Significance for the UK gig economy
The crackdown reflects broader government efforts to regulate gig economy employment and prevent illegal working while highlighting the potential economic impact on consumers. Takeaway prices may rise as delivery companies adjust to stricter verification requirements and increased compliance costs.
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Dawood Pervez (L), managing director at Bestway Wholesale and Katie Secretan, managing director of Co-op Wholesale
A NEW partnership has been formed between Co-op Wholesale and Costcutter Supermarkets Group (CSG) to support independent retailers across the UK.
Goes beyond the standard supply deal, it aims to bring the combined expertise and resources of both businesses together, helping local retailers compete in an increasingly tough convenience market, a statement said on Thursday (4).
Katie Secretan, managing director of Co-op Wholesale, welcomed the move. She said: “I am delighted to announce this new agreement which goes further than just a supply deal; we are jointly focused on true partnership as the key ingredient for mutual success, as we collectively support independent retailers to grow through our market leading propositions.”
The deal ensures that Costcutter stores will continue to benefit from Co-op Wholesale’s full-service convenience model, including access to Co-op’s well-known own-brand products.
Dawood Pervez, managing director of Bestway Wholesale, which owns Costcutter, said the agreement builds on a strong existing relationship. “The continuation of our collaboration will see Costcutter stores continue to benefit from the market-leading full-service convenience model from Co-op Wholesale, including access to the iconic and best in class Co-op own brand products. Both businesses are committed to working together to continuously improve the offer, supporting retailer growth in an evolving market,” he said.
Bestway Wholesale, part of the Bestway Group, is one of the UK’s largest independent food and drink wholesalers. Founded in 1976, the company has grown to operate 62 depots across the country and generates a turnover of around £3 billion. It supplies more than 100,000 retailers and 7,000 symbol and franchise operators, as well as running over 200 of its own company-owned stores.
The group also manages brands including Costcutter, best-one and Bargain Booze, and services a wide range of businesses in retail, catering, foodservice and specialist pet supplies.
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India's finance minister Nirmala Sitharaman said the Goods and Services Tax (GST) structure would be simplified from four slabs to two, with reductions across several sectors. (Photo: Getty Images)
INDIA announced a major cut in consumption taxes on Wednesday, days after the United States imposed steep tariffs on Indian goods.
India's finance minister Nirmala Sitharaman said the Goods and Services Tax (GST) structure would be simplified from four slabs to two, with reductions across several sectors. In some cases, levies have been reduced by more than half.
The tax changes will make a range of consumer goods, including soap bars and motorbikes, cheaper. However, the move could add pressure on government finances.
The announcement comes after US president Donald Trump imposed tariffs of up to 50 per cent on imports from India, raising concerns of a slowdown.
Sitharaman said the GST cuts were not linked to the tariff issue. "These reforms have been planned for a long time," she said.
India's prime minister Narendra Modi welcomed the measures. "The wide ranging reforms will improve lives of our citizens and ensure ease of doing business for all, especially small traders and businesses," his office said in a social media statement.
The revised system removes tax on insurance premiums, including life and health coverage. Levies on motorbikes and small cars have been reduced from 28 per cent to 18 per cent.
A finance ministry note also said dozens of life-saving drugs will now be tax exempt.
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Jio Platforms includes India’s largest telecom operator, Reliance Jio Infocomm, with more than 500 million users. (Photo: Reuters)
RELIANCE Industries plans to take its telecom and digital arm, Jio Platforms, public by mid-2026, chairman Mukesh Ambani said on Friday. The announcement sets a new timeline for the long-awaited IPO of a business analysts value at over $100 billion.
At its annual general meeting (AGM), Reliance also announced the launch of an artificial intelligence unit in partnership with Google and Meta.
Ambani had first indicated plans in 2019 to list Jio within five years. On Friday, he told shareholders the company is preparing to file for an IPO next year.
Reuters reported in July that Jio decided against launching an IPO in 2025. Analysts at the time valued the company at over $100 billion.
Jio Platforms includes India’s largest telecom operator, Reliance Jio Infocomm, with more than 500 million users. Backed by investors such as Meta, Google and KKR, the business is central to Ambani’s move to diversify Reliance beyond oil and chemicals into retail, consumer and technology. AI and international expansion are now key areas of growth.
Reliance is also investing $8.8 billion in its chemicals business. It expects retail to grow sales by nearly 10 per cent a year on a like-for-like basis and plans to add 2,000–3,000 new stores annually.
“Jio is not being fully valued within Reliance's broader petrochemicals and retail portfolio, and a separate listing would help unlock higher value for the telecom and digital unit,” said Saurabh Parikh, senior analyst at ICRA Ltd.
AI Unit with Meta and Google
Reliance and Meta announced a new AI joint venture with an initial investment of around $100 million. Meta CEO Mark Zuckerberg told the AGM the venture will provide Meta’s open-source AI models to Indian businesses.
Google will partner with Reliance to deploy AI across energy, retail, telecom and financial services. It will also set up a Jamnagar Cloud region dedicated to Reliance, Google CEO Sundar Pichai said at the meeting.
The partnerships come as India-US relations face tensions following US President Donald Trump’s decision to impose 50 per cent tariffs on Indian exports in response to India’s purchase of Russian oil.
Reliance runs the world’s largest refining complex in Gujarat and is India’s biggest buyer of Russian oil.
(With inputs from agencies)
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Asda sales fell 0.2 per cent in the three months to June 30, 2025 (AFP via Getty Images)
THE chairman of Asda has admitted the supermarket chain still faces challenges after sales slipped again over the summer, but said the completion of a major IT overhaul was crucial for its recovery.
Allan Leighton told the Times that the long-delayed technology project, called Project Future, had finally been finished after years of setbacks and costs exceeding £1 billion. The work involved separating more than 2,500 systems inherited from former owner Walmart, following Asda’s 2021 takeover by TDR Capital.
Describing the programme, he said it might be “the biggest IT systems change, certainly in Europe, maybe ever”. He added: “The cost is material, but largely that is now behind us.”
The supermarket acknowledged that the switchover had caused “temporary disruption with product availability” both online and in stores, which would weigh on sales through to September.
Leighton explained: “We’ve been doing 50 stores a week, every week, for 10 weeks. The collective scale of that does cause some friction… so that’s where the impact has been.”
Leighton, who rejoined Asda last November after previously leading the business in the 1990s, has focused on price cuts and improving stock levels. He said he did not expect “any miracles” but stressed that completing the IT work and reducing distractions was “very critical” for the turnaround.
Asda has been pouring money into a Rollbackprogramme of price reductions to compete with Tesco, Sainsbury’s and the fast-growing discount chains Aldi and Lidl. The grocer said its average reduction under the scheme was about 22 per cent.
He also voiced concern about government policy, warning that chancellor Rachel Reeves’s approach could push up prices. “There’s no doubt all of this is hitting the pocket of the consumer. And when that happens, that’s not particularly good for anybody. I think there’s more gloom than we’ve seen for a long time,” he was quoted as saying. He added that Reeves risked driving up food bills by “taxing everything in some way shape or form.”
Sales at Asda fell 0.2 per cent in the three months to June 30, excluding fuel, while turnover edged down to £5.3bn. Earlier in the year, sales had fallen nearly 6 per cent.
Data from research firm Kantar showed the supermarket’s market share dropped further over the summer, with sales down 2.6 per cent. Aldi is now close to overtaking Asda as the UK’s third-largest grocer.
Leighton pointed to other parts of the business as bright spots. George, Asda’s clothing and homeware arm, posted 2.5 per cent like-for-like growth, while its convenience format Asda Express rose 8.6 per cent, outpacing the wider market. “We’re more than just a supermarket,” he said, highlighting its clothing stores, cafés and opticians.
Retail analyst Clive Black of Shore Capital said, “Asda’s Q2 performance is not yet at a stage of putting up the bunting, but we are pleased to see for all those in Leeds the signs of improvement, which we anticipate will now follow through into forthcoming quarters.”