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<ul><li><strong> In a telling commentary on what's unfolding in India, the global broking house slammed the Narendra Modi government in no uncertain terms.</strong></li><li><strong>The government may have been pursuing a devious strategy of deflecting public concerns about job and income prospects (and the recent inflation spike) with its controversial ‘citizens’ legislation, the report said.</strong></li><li><strong>This was a gross miscalculation. The powerful public backlash will exacerbate domestic demand prospects over the coming months, the report added.</strong></li></ul>Global brokerage CLSA released a report citing data that showed India's economy in poor health. But deep inside that report, there was a telling commentary on what has been unfolding in India in the last few weeks.<br /><br />"There is nothing good, in our view, that can be said about the Citizen Act and National Citizens Register. The economic impact is our main interest," the report said slamming the Narendra Modi government's move to push through <a href="https://www.businessinsider.com/blindspot-to-backlash-indias-modi-and-party-misread-the-mood-2019-12?IR=T" data-type="tilCustomLink" target="_blank">the Citizenship Amendment Act</a> (CAA), which has sparked protests across the country— many of which have been violent.<br /><br /><strong>Watch the story:<br /></strong><br />
  
  
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 <br />The public outrage against the Act is based on the understanding that, combined with the proposed National Register for Citizens, the CAA will be used to discriminate against the Muslims in the country. While the government has repeatedly denied the charge, it hasn't cut ice with its critics or the protestors across the country.<br /> <br />
	
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br />But the report did not stop there; it also ascribed a insidious intent to the process. "The government may have been pursuing a devious strategy of deflecting public concerns about job and income prospects (and the recent inflation spike) with its controversial ‘citizens’ legislation," the report said, adding that, "This was a gross miscalculation." <br /><br /><strong>See pictures of the recent protests: </strong><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br /><strong>These are some of CLSA's warnings about the prospects of the Indian economy in 2020:</strong><br /><br />The growth in India's Gross Domestic Product (GDP), simply put the national income, has tumbled to its slowest in six years. While many are hoping that this would the point from which it will bounce back, CLSA sees more pain in store.<br /><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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 <br />The telling signs of further slowdown, according to CLSA, are the sharp drops seen in the import of capital goods and bank credit. The import of capital goods, which increase when businesses are making fresh investments, have shrank 10% in November 2019, a "steepening downtrend signalling a sustained investment downswing," according to the report.<br /><br />Bank credit growth slowed to 7.7% in November 2019, way down from the 14.3% peak at end-2018, CLSA said seeking RBI to cut interest rates further in February 2020 to improve money supply.<br /><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br />The dwindling employment and income prospects have been visible in the recent spate of job losses have led to a sharp fall in consumer sentiment, which was at a six-year low at last count by the RBI. <br /><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br />While people are earning less, the rising inflation leaving even lesser money on the table for consumption. What makes matters worse is the RBI governor Shaktikanta Das <a href="https://www.businessinsider.in/policy/economy/news/rbi-keeps-the-interest-rates-unchanged/articleshow/72378620.cms?upcache=2" data-type="tilCustomLink" target="_blank">has already warned that inflation</a> will be sharp in the first half of 2020. "The powerful public backlash <em>(against the Citizenship Amendment Act)</em> will exacerbate domestic demand prospects over the coming months," the CLSA report added.<br /><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br /><br />Last week, another global investor had a similar comment to make on India. <a href="https://www.businessinsider.in/business/startups/news/american-billionaire-tim-draper-is-concerned-about-india-funding-plans/articleshow/72896053.cms" data-type="tilCustomLink" target="_blank">American venture capitalist Tim Draper</a> said that he is seriously rethinking his funding plans in India after the Citizenship Amendment Act.<br /> <br />
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	<div type="twitter" handle="TimDraper" handlename="Tim Draper" image="http://pbs.twimg.com/profile_images/712463875975680000/yUVhpujj_normal.jpg" favoritecount="14701" retweetcount="7707" status="India choosing one religion over another makes me seriously concerned about my plans to fund businesses there.… https://t.co/p4OhpxcwEK" createdat="1576766899000" id="1207674025616519173"></div>







































































<br /><br /><br /><strong>SEE ALSO:</strong><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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"There is nothing good" about the Citizenship Act, says global broking house CLSA in a report on India's drooping economy

<ul><li><strong>The spotlight is back on RBI ahead of its monetary policy and the speculation is rife that there may a sixth interest rate cut is likely in December.</strong></li><li><strong>If the RBI cuts interest rates in December, it will be the sixth time this year.</strong></li><li><strong>However, cheaper loans may not solve the crisis of confidence in the Indian economy. As Raghuram Rajan advised, the current slowdown may be an opportunity for structural reforms.</strong></li></ul>Be it Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, Home Minister and party heavyweight Amit Shah⁠— all are selling the average Indian voter the dream of being part of a $5 trillion economy by 2025.<br /><br />But the odds are against it. Even if one were to $5 trillion is just a symbolic number for fast growth, and not a definite goal, the harsh realities on ground will mean it will take a lot more to get the economy moving. Every 2 months, the spotlight is on Shaktikanta Das, the governor of the Reserve Bank of India (RBI), to make loans cheaper. He has delivered on the expectations five times this year, and a sixth cut in interest rate is predicted on December 5. But that alone may not be enough.<br /><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br />Currently, the economic growth is <a href="https://www.businessinsider.in/policy/economy/news/india-latest-gdp-growth-data-and-manufacturing-and-gva-data/articleshow/72294625.cms" data-type="tilCustomLink" target="_blank">at a six-and-a-half year low</a>, and has been on a downtrend for 15 months in a row. What makes it worse is the unpredictability around it. Even experts have had to revisit their projections on a monthly basis because things are getting worse by the day. <br /><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br /><strong>Firstly, growth needs money<br /></strong><br />The amount of credit in the system has gone down drastically. As veteran stock market investor Vallabh Bhanshali warned, <a href="https://www.youtube.com/watch?v=Kd75yZqHQGk">in an interview with Business Insider,</a> the money supply in India today is what it used to be in the 1960s, when the economy was growing at a measly 2-3%. Since then, it has only gotten worse.<br /><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br /><br /><strong>The money has to pass through, it hasn’t<br /></strong><br />While the RBI has cut interest rates by 135 basis points since February, most Indian banks’ passed on less than a third of it via lending rates. So loans aren’t getting cheaper for the average borrower as it is for the banks. <br /><br />What is worse, more interest rate cuts will hit <a href="https://www.businessinsider.in/cut-in-bank-deposit-rates-will-hurt-financial-savings-of-indian-families/articleshow/71075369.cms" data-type="tilCustomLink" target="_blank">family savings for most Indians who prefer bank deposits</a> to evolved financial products. This will further dent consumer demand that is already tepid.<br /><br />
	
	
	
	
	
	
  
  
  
  
  
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<br /><br />Not just that, the banks aren’t lending enough either. The reason why the money supply has reduced sharply is because the banks, saddled with bad loans, are increasingly shy of risk. Bad loans can’t be wished away, neither can the money be recovered by prayers. The non-banking financial sector, which is nearly a sixth of the economy, is in dire straits. <br /><br />Not just that banks have been reluctant to lend to these shadow banks, they are not able to raise money from the bond market either. This is because nobody is sure which is a safe firm to lend to and which won't be able to pay back the loan.<br /><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br />It is not like NBFCs aren’t raising money because interest rates are too high. The market rate for ‘AAA’, the top-rated, bonds have steadily come down in the last one year. It is not a question of who can afford the loans, but it is actually about who can avail it.<br /><br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br />So, as renowned economist and former <a href="https://www.businessinsider.in/policy/economy/news/raghuram-rajan-gave-ideas-on-how-to-revive-economic-growth-in-india/articleshow/71573594.cms">RBI governor Raghuram Rajan advised</a>, the bad apples have to be separated from the good ones, which should then given the required capital to grow. India's state-owned banks, which control over a third of India's bank credit, are infamous for taking orders from their political bosses before making loans. This has been a big contributor to current pile, nearly $140 billion, of bad loans given as, or in lieu of, favours. <br /><br />Now may be the time for the government to tell these banks to pass on the interest rate cuts to companies that are in distress but follow good governance standards. <br /><br /><strong>Make the consumers feel good, companies will follow<br /></strong><br />The Indian government has announced sharp tax cuts for Indian corporates making fresh investments. But who is going to buy the products that companies make. The consumers, and they aren’t in a good mood either.<br /><br />The Indian consumer is a lot more stressed today than he was a few years ago. Household savings are declining and income isn’t increasing at the necessary pace. <br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br />That is for those who have jobs. Millions of people have <a href="https://www.businessinsider.in/may-day-2019-indias-labour-day-comes-at-the-cost-of-570000-job-losses-and-297-deaths/articleshow/69129435.cms" data-type="tilCustomLink" target="_blank">gotten laid off in industries like textiles and automobiles</a> that have undergone serious contraction. <br />
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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<br />Consumer confidence is at a six-year low, according to an RBI survey at the end of September. Once there are buyers, there will be sellers too. It is really a crisis of confidence and not interest rates in India. <br /><br />SEE ALSO:<br /><a href="https://www.businessinsider.in/business/news/reports-say-that-38-billion-worth-of-loans-to-real-estate-are-in-trouble/articleshow/72331299.cms" data-type="tilCustomLink" target="_blank">Nearly one in three Rupees lent to builders is unlikely to come back</a><br /><br /><a href="https://www.businessinsider.in/policy/economy/news/raghuram-rajan-gave-ideas-on-how-to-revive-economic-growth-in-india/articleshow/71573594.cms" data-type="tilCustomLink" target="_blank">Raghuram Rajan’s recipe to revive India's economic growth</a><br /><br /><br />

India’s $5 trillion dream needs more than just interest rate cuts

<ul><li><strong>A part of the moon will be under the earth's shadow in the wee hours of Friday causing what is called the penumbral lunar eclipse.</strong></li><li><strong>Some astrology experts in India advise people to avoid important actions during this phase.</strong></li><li><strong>However, views differ from one astrologer to another across regions and countries.</strong></li></ul>The first lunar eclipse of the season, and the second one this year, is set to take place on June 5. The entire duration of the eclipse will be around 3 hours 18 inutes. This will be a penumbral lunar eclipse, where only the Earth's outer shadow will fall on the moon.<br /><br />      <div type="Article" hostid="261" msid="76189784" title="The ‘Strawberry Full Moon’ lunar eclipse on June 5 will be penumbral — here's how that's different from partial and total lunar eclipses" mstype="2" mssubtype="0"></div><br />Science says that lunar eclipses are completely safe to witness with a naked eye. However, people of faith beg to differ.<br /><br /><strong>Over to astrologers</strong><br />Astrology and astronomy have been closely linked in India for eons. And according to many experts in the field, the lunar eclipse phase is a time to shut up and sit tight, indoors.<br /><br />Eclipses generally occur 4 to 6 times in a year. "The influence on events continues much longer - up to 3 months in advance, and also 3 years later. Actually, astrologers advise to avoid a period of about 3 days on either side of the eclipse or <em>grahan</em> for starting any new project," according to Ganesha Speaks, a popular destination for Indians who believe in astrology.<br /><br /><br />                        <div type="Article" hostid="261" msid="70220868" title="India’s Chandrayaan 2 gets delayed due to a technical snag, pausing countdown at 56 mins" mstype="2" mssubtype="0"></div><br />"Good actions done during this period do not yield expected results. Hence it is advisable to avoid all important actions like inaugurations, important business deals etc. during an eclipse period," explains the <a href="https://www.spiritualresearchfoundation.org/spiritual-problems/effects-of-nature-and-environment/eclipse-meaning-effect/" data-type="tilCustomLink" target="_blank">Spiritual Research Foundation</a>.<br /><br /><strong>SEE ALSO:<br /></strong><strong>Lunar Eclipse time, date and schedule in India on July 5</strong><br />

Some Indians believe lunar eclipse is bad for new business

<ul><li><strong>The American President tweeted saying he will raise the issue of high tariffs in India on American goods in his conversation with Indian Prime Minister Narendra Modi.</strong></li><li><strong>Donald Trump's tweet will cast a doubt on the possibility of a thaw in India's bilateral ties with the US.</strong></li><li><strong>India and US are at crossroads over many issues from visa, defence deals to oil purchases from Iran, to name just a few.</strong></li><li><strong>US Secretary of State Michael Pompeo and India's Foreign Minister S Jaishankar put up a cordial front after talks on Wednesday.</strong></li></ul>India and US have differences <a href="https://www.businessinsider.in/mike-pompeo-india-visit-bjp-narendra-modi-hit-back-at-us-state-department-report-on-minorities/articleshow/69912060.cms" data-type="tilCustomLink" target="_blank">over many issues</a>-- H-1B visas, India's defence deals with Russia and oil purchases from Iran, tariffs to name a few-- but US Secretary of State Michael Pompeo and India's Foreign Minister S Jaishankar put up a cordial front after the bilateral talks on Wednesday (June 26).<br /><br />If that had triggered any hopes of a middle ground between the two large economies in a world fraught with risks, US President Donald Trump was quick to throw in a spanner.<br /><br />
	
	
	
	<div type="twitter" handle="realDonaldTrump" handlename="Donald J. Trump" image="http://pbs.twimg.com/profile_images/874276197357596672/kUuht00m_normal.jpg" favoritecount="12796" retweetcount="3155" status="I look forward to speaking with Prime Minister Modi about the fact that India, for years having put very high Tarif… https://t.co/w28hIF3jbi" createdat="1561607225000" id="1144089743795216384"></div>









<br />This tweet with its confrontational tone could reduce the hopes of a thaw in India's frosty bilateral ties with the US. <br /> <br />The talks between Donald Trump and Narendra Modi at the sidelines of the G-20 meeting was never going to be easy."There's a nagging misconception. The distrust of earlier era still lingers. But that is not true. Just look at what has already happened. You have made hard choices to cut off oil imports from Iran and move away from purchasing Venezuelan oil," Pompeo said yesterday.<br /><br />After his meeting with Jaishankar, Pompeo <a href="https://www.businessinsider.in/international/india-and-us-did-not-discuss-waiver-to-buy-oil-from-iran/articleshow/69960897.cms" data-type="tilCustomLink" target="_blank">said the two sides did not even discuss</a> the contentious issue of India's demand for waiver allowing the country to buy oil from Iran. Pompeo was quick to underscore the US point of view by calling Iran the 'world's largest state-sponsor of terrorism'. This would mean doing business with Iran will be akin to helping terrorism.<br /><br />Between US' trade war with China, and the tension in the middle east, global trade has taken a severe knock, and India is not immune to it. At the same time, domestic economy is in a bad shape. Another tariff war directly with the US would be a debilitating for the world's fastest-growing economy, India. The only hope for India is that Modi's talks with Trump seem less ominous than the US President's tweet.<br /><br /><strong>SEE ALSO:<br /></strong><a href="https://www.businessinsider.in/mike-pompeo-india-visit-bjp-narendra-modi-hit-back-at-us-state-department-report-on-minorities/articleshow/69912060.cms" data-type="tilCustomLink" target="_blank">India tells US to shush after the State Department called out the Modi government's passivity to 'hate' against minorities</a><br /><br /><a href="https://www.businessinsider.in/international/india-and-us-did-not-discuss-waiver-to-buy-oil-from-iran/articleshow/69960897.cms" data-type="tilCustomLink" target="_blank">India and US did not discuss waiver to buy oil from Iran at Pompeo's meeting with Jaishankar</a><br /><br />

You Searched For "policyinjest" and got 4 results

"There is nothing good" about the Citizenship Act, says global broking house CLSA in a report on India's drooping economy

Sriram Iyer

India’s $5 trillion dream needs more than just interest rate cuts

Sriram Iyer

Some Indians believe lunar eclipse is bad for new business

BI India Bureau

Donald Trump just threw a bender at Narendra Modi ahead of the G-20 meeting in Japan

Sriram Iyer

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