Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Economists at the country's largest lender, SBI, today said they see India's Q2 real GDP growth slowing down further to 6.5% in the September quarter of this fiscal year. Amid concerns over the country's economic growth rate and whether it is slowing down, the analysts said they expect FY25 growth to come "closer to" 7%. SBI analysts join a long line of agencies like Fitch, ADB, IMF, Moody, World Bank, S&amp;P, and even RBI in forecasting India's GDP growth for FY25 in the range of 6.8% to 7.2% for FY25, driven by robust consumption and investment. SIP inflows have been at an all-time high, and so has QIP (qualified institutional placement) fundraising. As many as 71 companies raised Rs 88,678 crore this year through QIPs. Activity in Indian primary markets also remained robust, with 78 mainboard IPOs in 2024; this is a 111% rise from just 38 listings in FY23. Between April and June 2024, India's real GDP grew by 6.7%, the lowest growth seen in 15 quarters, pushing experts to believe that India is caught in a cycle of slowdown. "There is some incipient pressure evident on the domestic economy. Based on our analysis of 50 meaningful leading indicators (both consumption and demand-centric), a dip looks plausible across select cohorts of agriculture, industry, and services in Q2," the <keyword id="22337294" type="General" weightage="20" keywordseo="SBI-economists" source="keywords">SBI economists</keyword> added. Stating that they track 50 indicators to gauge economic activity, SBIs note said the proportion of indicators showing acceleration declined to 69% in Q2 FY25, as against 80% in Q2 FY24 and 78% in Q1 FY25. However, things might be changing now, given that rural demand has started looking up amidst muted urban demand. SBI also explained that the ongoing regulatory tightening on unsecured lending and roadblocks that are hindering rollover/refinancing of debt through unsecured credit are dismantling the unwarranted exuberance that had built up post-pandemic, especially in the urban areas. Madhu Lunawat, CIO &amp; Fund Manager, Bharat Value Fund states that the overall investment environment remains strong due to favorable economic conditions supporting government policies &amp; reforms. "The sustainable inflow from domestic investors is going to support the Indian equity market in any kind of correction. The long-term bullish structure of Indian economy will continue to attract new domestic &amp; global investors to participate in India’s growth story through various Investment avenues.” <h2>Rate cuts not on cards</h2>RBI Governor Shaktikanta Das clarified today that changing the monetary policy stance to 'neutral' does not mean a rate cut is imminent in the central bank's next policy announcement. Notably, RBI MPC is set to meet between December 4 and 6, 2024, to decide if the prevailing repo rate of 6.5%, which has stayed unchanged for the last 2 years, should be brought down or not. In its last meeting, The <keyword id="20501100" type="General" weightage="20" keywordseo="RBI-monetary-policy" source="keywords">RBI monetary policy</keyword> committee had shifted its stance to 'neutral' indicating that it is open to adjusting interest rates based on economic conditions. "It should not be assumed that we have done this, so therefore the next step is a rate cut. A change in stance doesn't mean that the next step is a rate cut in the very next meeting. It's not so," Das said. Das also cautioned that inflation remains a key factor, and inflation and CPI prints for October are expected to stay high.

SBI economists see Q2 GDP growth slowing down to 6.5%; FY25 growth to be closer to 7%

Top 10 countries with the highest GDP in 2024! See where India stands

Simply Put: Here's why the next three months are gonna be costly

<ul><li>The GDP growth rate for the first quarter of the 2019-20 came lower than expectations, at a mere 5%.</li><li>However, online searches for ‘<keyword id="121430" type="PERSON" weightage="20" keywordseo="recession-in-india">recession in India</keyword>’ had spiked many times over in the last couple of months.</li><li>Afraid of a severe slowdown, Indian consumers had cut back expenses, even on items of daily use, setting in motion a vicious cycle of slowdown in manufacturing, investments, and unemployment.</li><li>Economists hope the recent stimulus from both the government and the RBI, as well as good rains, will help in reviving both the economy and the sentiment.</li></ul> India’s growth in gross domestic product (GDP) between April and June 2019 was a mere 5%, the worst in over six years and way below estimates. The data was released on Friday (August 30) but people in India had already been fearing a recession much before the government admitted to a sharp slowdown. Google Trends show that online searches for ‘recession in India’ spiked in the last couple of months, many times over, showing that people had already started to feel the pinch. 
	
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 <div type="image" title="recession_in_india (1)" msid="70922480" hostid="261"></div>

































 The very first day of trading after the Finance Minister Nirmala Sitharaman announced the mega merger of ten public sector banks (PSB) into four, the stock markets went tumbling down on Tuesday September 3. Sensex shed 600 points whereas Nifty lost over 180 points. This fall was led by PSB stocks and most of their stocks were down by over 5%. This is one of the many measures taken to revive the economy. The economic wheel was brought to a grinding halt by demonetisation in November 2016, and the recovery was delayed by the disruptions caused by the introduction of Goods and Services Tax (GST) in mid-2017. As tax revenue fell, the Narendra Modi government <a href="https://www.indiatoday.in/business/story/bonds-indian-economy-government-spending-1580704-2019-08-14">reduced spending</a> to keep the fiscal deficit under check. Private investments had already <a href="https://www.thehindu.com/business/performance-of-corporate-firms-declines/article29231755.ece">gone into a shell</a>, and as the Modi government tightened its purse strings in the last year of its first term, economic activity spiraled down. 
 
 <div type="image" title="IANS GRaphic" msid="70922978" hostid="261"></div>





 The report authored by Soumya Kanti Ghosh is pushing for more aggressive interest rate cuts by the RBI. “We believe it is incorrect for central bankers to suggest that they have this challenge under control - or that with their current toolkit they will be able to get it under control,” said SBI Ecowrap. This deep slowdown is a culmination of many areas, in addition to decline in consumer sentiment right from slowing auto sales to reduced air traffic growth to cut backs on items of daily use. Before taking a look ahead, let’s look at the three main areas where growth is slowing down. Consumption hits a standstill with job losses Weary Indians are cutting down on expenses like no other, and that has affected the economy. As many as 350,000 jobs were cut in the formal sector of automobiles. This massive number does not count in <a href="https://www.businessinsider.in/a-third-of-indias-textile-workers-30-million-lost-their-jobs-and-more-could-go/articleshow/70781257.cms">textiles, diamond workers and </a>others. Combined with the informal sector job loss, the consumption loss would translate to around ₹15,000 crore. The growth in consumption expenditure slumped to 3.1% in the three months ending June 2019-- the weakest in five years. More than half of India lives outside the cities, and the broad-based consumption slowdown reflects the deep distress in the rural parts. “Agriculture, forestry and fishing output grew by 2% improving slightly from de-growth (contraction) of 0.1%,” said a report by Edelweiss. Manufacturing shutters down With low consumption and almost no demand growth in sight, the quarter’s manufacturing growth was as low as 0.6%. This is in spite of high growth in electricity and utility expansion. Investment lowers with less to spend Indian companies are seeing less reasons to keep their plants running, there is much less to invest either. As a result, investments growth has slipped to just 3.7%. Companies are choosing to park their money in financial assets rather than betting on a slowing economy. “With low wage growth rate, household savings are also particularly down. Thus, households are not closing the savings-investments gap and this is bringing down overall investments,” said Edelweiss. Simply put, people are choosing to hold on to cash rather than invest anywhere <a href="https://www.businessinsider.in/gold-prices-on-a-rally-set-to-test-new-highs-of-1450-per-ounce/articleshow/69970217.cms">other than gold</a>. Will the Indian economy weaken further or enter a recession? An economy is defined to be in a recession if growth contracts for two straight quarters. That isn’t the case with India. However, many sectors within the Indian industry like automobiles and textiles-- two of the largest providers of jobs-- are already in recession. So there are reasons to worry but may be not for panic. The chickens have come home to roost. But the government has woken up to the emergency and is <a href="https://www.businessinsider.in/nirmala-sitharam-address-on-india-economic-stimulus-live-updates-and-highlights/articleshow/70804926.cms">shoring up money</a> to battle the slowdown. “Based on fiscal deficit numbers, in Pradhan Mantri Kisan Yojana (PMKY), the government will save ₹30,000 crore. If we add <a href="https://www.businessinsider.in/sensex-today-jumps-150-points-after-rbi-move-to-transfer-surplus/articleshow/70852202.cms">RBI surplus transfer</a>, the Government further would have adequate cushion for make up for revenue loss,” said a report by SBI Ecowrap. The more money the government spends in stimulating demand and investments in the economy either through sops for consumers or incentives for industries, the sooner the economy will revive. Aside from giving the government a part of its reserves, the RBI has already cut interest rates four times this year hoping to bring down lending rates, and Edelweiss believes that India’s GDP growth will start improving hereon as the effect of RBI’s measures start to trickle in. The rains will also have a role to play. “This number is likely to improve further the next quarter as a South-west monsoon season has been normal for this year,” the Edelweiss report said. Just like the pain of demonetisation and GST have lingered on for over two years, the government’s recent measures to boost economic growth may show effect with a lag.

Indians were fearing recession even before data showed that GDP growth hit a six-year low

The <keyword id="44910" type="PERSON" weightage="20" keywordseo="GDP-growth">GDP growth</keyword> in India after 2014 is a highly significant topic that seems to have been impacted by a number of factors. The BJP government headed by Prime Minister Narendra Modi came to power in May 2014 following a thumping victory in the Lok Sabha general elections. Four years after the government assumed the power, the <keyword id="6356076" type="DEFINITION" weightage="20" keywordseo="indian-economy">Indian economy</keyword> was found to have slipped back to the same state matching with what it was a year before the new government took charge. GDP reports from 2014 onwards During the financial year 2018, India’s GDP growth had slowed down to 6.7% when compared to what was recorded in the previous year as 7.1%. This figure was almost on par with the 6.6% GDP growth reported in the financial year 2014, just before the Lok Sabha elections were held. Hence the figures show the pace of growth of GDP under Narendra Modi government was the slowest. However, during 2015 and 2016, the GDP growth touched 7.3% and 8 % eventually slipping down in 2017 and 2018. The reasons for the slip in GDP growth after 2014 Tracing the reasons for the slow growth of GDP, the finance experts put the blame on a few policies of the government. The demonetization implemented by the Narendra Modi government affected a large number of businesses. Especially small businesses were the ones to suffer much. The scenario following 2016 also saw a large number of job losses across multiple industry domains. The government also introduced the GST (Goods and Service Tax) in July 2017 which was considered a massive reform by the BJP government. Though the move was heralded by many as a vital measure to regulate and systematize the taxation procedures, the implementation was not that easy. There were riddles of problems to solve and the implementation happened in a haphazard manner that also led to the slowing down of the GDP growth. Yet another area that contributed to the slowing down of GDP growth after 2014 is the private investments segment. In fact, this had been a major challenge to the country’s economy. Over the 12 months ending with March 2018, India had scrapped a large number of projects which was said to be an all-time high in terms of number and volume. This fact has been reported in the report published by the Center For Monitoring Indian Economy. The report card for the whole year does not look encouraging enough. Recovery and a quick surge in GDP growth Though the ride had been bumpy over the past four years after 2014, the Indian economy managed to be labelled as the fastest growing economy of the world in 2018. The World Bank has forecasted that India’s economy is all set to grow at a rapid pace than the other major economies of the world. Now India economy is the third largest in Asia and the trends seen at present can move Indian economy to the upper slots in the years to come. A significant recovery in private instruments and a strong growth in the consumption of goods and services in the private sector is expected to fuel the growth of Indian economy over the next few years.

What is the growth of GDP after 2014

For the first time in over a year, global investors have gone back to being ‘neutral’ on the Indian <a href="http://www.businessinsider.in/searchresult.cms?query=markets">markets</a> compared with the overweight position that they had held since October 2014. This was stated by the latest edition of the Bank of America Merrill-Lynch Fund Managers’ survey. 
 
The dip in euphemism among global investors amply reflects a growing perceptive that Indian equity markets are undergoing a correction and investors need to be cautious. 
 
According to the survey, it is the first time since October 2014 that India is falling out of favour from being most overweight. 
 
In fact, foreign investors have turned bullish on India since 2014 Lok Sabha elections, hoping that the new government will help revive economic growth by bringing far reaching reforms and addressing structural issues, leading to a spike in foreign inflows into Indian equity markets. 
 
In 2014, foreign investors pumped in a whopping $16.16 billion in Indian equities, helping the market surge close to 30%. 
 
Indian stocks also benefited immensely from the fall in crude oil prices, which coincidentally started falling in June 2014. The <a href="http://www.businessinsider.in/searchresult.cms?query=modi+government">Modi</a>-led government made use of this opportunity by ending subsidies on diesel in October 2014. 
 
In contrast, since September this year, the benchmark BSE Sensex fell more than 10% while the Nifty too marked a sharp fall. 
While the slowdown in China (Chinese equity markers declined more than 30% over the last few months) was an obvious trigger, the prolonged surge in markets—which lasted for more than a year since the run-up to the polls last year—was anyhow necessitating a correction. 
 
Overall, volatility in <a href="http://www.businessinsider.in/searchresult.cms?query=emerging+markets">emerging markets</a>, concerns over worsening global risk environment, weak earnings outlook, collapsing commodity prices, a stronger US dollar and higher bond yields have forced fund managers to pull their positions to close to record lows across markets. This means what is happening in India is not an aberration. 
 In the past 17 months since assuming power at the Centre, the BJP government led by <keyword id="6354814" type="UNKNOWN" weightage="20" keywordseo="prime-minister-Narendra-Modi">Prime Minister Narendra Modi</keyword> managed to set a clear direction for economic growth, enliven the spirits of investors at home and elsewhere by announcing a slew of structural reforms. 
 
The reforms included removing adversarial and oppressive direct tax measures (now domestic taxation processes are simpler—tax returns can be filed online and taxpayers can get refunds online) and made a considerable headway in its attempt to implement GST—the biggest indirect tax reform measure envisaged in the country’s history. 
 
However, abysmal levels of capex by private firms remain a concern as Indian companies continue to be over-borrowed and overstretched. 
Corporate results that continue to be subdued too have proved to be a dampener for the markets. 
 
In fact, despite broadly stable EBITDA margins, net profit margins remain on a downtrend, and are 1.8 percentage points below their 20-year average of 11.7%. Among the reasons for poor profits of Indian corporates are high interest costs and depreciation and amortisation expenses owing to increased debt. 
 
Besides, the loss of BJP in the state elections in Bihar came as a major setback for the Modi-led government, hurting the market sentiment further. 
 
While BJP had last year faced defeat in state elections in Delhi, the loss in Bihar is much more damaging as the state has much bigger say in Rajya Sabha (BJP was hoping to improve its tally in the upper house through a win in Bihar). The government that has already been facing a challenge in getting key reforms ratified by the upper house where it is in minority is likely to see a stronger opposition paralysing its initiatives in the future. 
 
In addition, an impending interest rate hike by Janet Yellen-led US Federal Reserve continues to weigh down on India as a reversal of rate trend in the US after almost a decade is expected to pull funds out of emerging markets including India. In fact, a far higher proportion of respondents in the Bank of America Merrill-Lynch Fund Managers’ survey are expecting the Fed to hike rates this year (the proportion of respondents expecting a Fed rate hike in December jumped sharply to 81% compared with just 47% last month) and many investors are betting on a stronger dollar as a consequence. 
 
However, the India story continues to be a strong and intact. Indian macroeconomic indicators remain relatively strong. The country recently shifted its method of assessing economic output from GDP (gross domestic product) to GVA (gross value added). It also revised the base year to 2011–2012 from 2004–2005. This resulted in economic output for fiscal 2013–2014 being revised to show a 6.9% pace instead of the 4.7% estimated by the GDP method. According to latest data, India’s GDP rose 7.3% in fiscal 2015, up from the 6.9% growth witnessed in fiscal 2014. 
 
Besides, the primary markets are beginning to see an uptrend after a lull of almost two years. More than a dozen companies have filed draft papers with markets regulator SEBI for public offers since the new government took charge at the Centre in May 2014. 
 
Besides, many companies, which scrapped their IPO plans earlier due to bad market conditions, have been keen to make another attempt to enter the capital markets. These translated in to a modest uptick in IPOs so far during 2015. The uptrend in IPO market is likely to have a positive effect on secondary market as well. 
 
Besides, as China slows down, India’s position as an investment destination get a boost as FIIs looking to infuse funds in emerging markets would need a relatively safe haven to park their funds. 
 
While global cues remain subdued, if Modi government continue to remain committed to pushing reforms and the opposition sees reason to support them, Indian markets are likely to overcome headwinds in the long run as the India story continues to be positive at the broader macroeconomic level. 
 
(Image: Indiatimes)

Why Indian equity market is likely to overcome headwinds

<keyword id="110163" type="CITY" weightage="100" keywordseo="PepsiCo-India">PepsiCo India</keyword> Chairman and CEO <keyword id="416080" type="COMPANY" weightage="100" keywordseo="D-Shivakumar">D Shivakumar</keyword> sees an upward growth of <keyword id="1729323" type="UNKNOWN" weightage="100" keywordseo="franchising-industry">franchising industry</keyword> in India. He said the industry can reach USD 50 billion by 2017 and create 11 million additional jobs. "By 2017, the opportunities for franchise business model in India would be USD 50 billion and the big ones would be in sectors such as <keyword id="97035" type="UNKNOWN" weightage="100" keywordseo="Apparels">apparels</keyword>, consumer deliverables, electronics and mobile," Shivakumar said here at the World Franchise Congress 2015. The industry is currently estimated to be around USD 30 billion with an annual growth of 30 per cent. Shivakumar predicted that it could create 47,000 new companies by 2017 as India has a new breed of entrepreneurs," he said, adding that it is expected to contribute almost 4 per cent of India <keyword id="35050" type="CITY" weightage="100" keywordseo="gdp">GDP</keyword> in 2017. 

	Elaborating on sectors which would contribute majorly, he singled out apparels, with USD 11 billion, followed by consumer deliverables, electronics and mobile (USD 11 billion), furniture and furnishings (USD 5.3 billion), and pharmacy and jewellery with USD 4 billion and USD 3 billion, respectively.
 

	Shivakumar said for over 100 years, franchising has been a fundamental driver of PepsiCo's success, which today covers more than 120 countries. It has build strong partners across the country in the last 25 years.
 

	"PepsiCo India's north operations are franchisee operated and the company works closely with various beverage bottlers to build a strong footprint of brands which are the first choice of consumers," he said.
 

	PepsiCo is focused on strengthening both COBO (company-owned bottling operations) and FOBO (franchise-owned bottling operations), he added.
 

	When asked about present scenario for franchising, he said, "India has the correct franchise business environment as other have...we believe that the franchise model is the future business model of the industry".
 

	On being asked that from where the opportunity would come, he said, "It would across the country, as luxury goods would be in the metro cities, QSR (quick service restaurants) would be across the country, and apparels would be in tier II and III." 
	 
	(Image credit: BCCL)

You Searched For "gdp of india" and got 7 results

SBI economists see Q2 GDP growth slowing down to 6.5%; FY25 growth to be closer to 7%

BI India Bureau

Top 10 countries with the highest GDP in 2024! See where India stands

Kunal Kambli

Simply Put: Here's why the next three months are gonna be costly

Business Insider India

Indians were fearing recession even before data showed that GDP growth hit a six-year low

Katya Naidu

What is the growth of GDP after 2014

BI India Bureau

Why Indian equity market is likely to overcome headwinds

Preetam Kaushik

Franchising industry can touch $50 billion by 2017, likely to contribute 4 pc to GDP: Pepsi India CEO D Shivakumar

BI India Bureau

Popular Keywords

Buying Guides