Home / International/ PM Modi forms economic council amid slowdown

PM Modi forms economic council amid slowdown


Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 27 September 2017 00:00


New Delhi (Reuters): Prime Minister Narendra Modi has set up a economic advisory council, the government said on Monday, as concerns grow about a slowdown in Asia’s third largest economy.

The new council, headed by Bibek Debroy, a member of Modi’s federal think tank Niti Aayog, will address “issues of macroeconomic importance” and present its views to the prime minister, the government statement said.

A few quarters ago, India was the world’s fastest growing major economy.

But data showed last month that India’s economic growth had slowed to a three-year low, prompting many economists to revise down estimates for the fiscal year ending in March 2018.

The figures piled pressure on Modi, who was widely criticised by the opposition for a decision last year to scrap high-value banknotes.

The policy meant to flush out money hidden from the taxman ended up wiping out about 86 percent of currency in circulation, hitting consumer demand in an economy where most people are paid in – and buy what they need with – cash. Finance Minister Arun Jaitley held meetings with cabinet colleagues and other government officials earlier this month and on Monday said the government was planning measures to revive growth.

Some economists have called for expansionary fiscal policy to stimulate consumer demand in India.The government is considering a plan to loosen its fiscal deficit target to let it spend up to $7.7 billion more to halt the slowdown, sources told Reuters last week.

Jaitley says planning steps to address growth concerns

New Delhi (Reuters): The Indian government is planning measures to revive economic growth, Finance Minister Arun Jaitley said on Monday.

Growth in Asia’s third-largest economy slowed to a three-year low of 5.7% in the quarter that ended in June, and Jaitley last week said that New Delhi was looking for ways to speed it up. The government is considering a plan to loosen its fiscal deficit target to enable it to spend up to 500 billion rupees ($7.68 billion) more to halt an economic slowdown, two government officials with direct knowledge of the plan told Reuters last Thursday.

 

 


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Imran may turn blind eye to blasphemy law and persecution of Ahmadiyyas

Saturday, 22 September 2018

There are clear signs that Pakistan’s freshly minted Prime Minister, Imran Khan, will make a sincere effort to reduce corruption and maladministration in the domestic sphere. In foreign affairs he is likely to make a brave attempt to mend fences wi


The rate of exchange, capital flight and the Central Bank

Friday, 21 September 2018

The Central Bank (CBSL) exists for the sole purpose of price stability. Its controls on the financial system and monetary policy exist to maintain price stability. As put forth many times by the Governor, the failing of the CBSL to control inflation


Red flag over the Sri Lankan Navy

Friday, 21 September 2018

Shocking story Rusiripala, a former banker in Sri Lanka, who has taken to writing in Daily FT, is perturbed by the red flag I have raised (Daily FT article 18 September) over the shocking charge that our Navy had operated a ransom gang that had abduc


The bald truth about fake news, etc.

Friday, 21 September 2018

In its most innocent forms, we may all enjoy a bit of ‘fake news’ and go to bed with a lighter heart and clean conscience. A meme on Facebook urging social media consumers to caution – “You can’t believe everything you read on the internet


Columnists More