Growth of capital goods at 9.6 per cent is inspiring as the investment cycle is expected to rebound in the coming months.
Cheering the rebound in India's economy which grew 5.7 per cent in the April-June quarter, highest in the past two-and-a-half years, India Inc on Friday said it expects the GDP to pick up further on the back of conducive investment policies and execution of reforms by government.
With India's GDP clocking a lower contraction of 7.5 per cent in the September quarter, industry and experts expressed confidence of further recovery in the coming months and said the government's actions are bearing fruit. In a tweet, Vedanta chairman Anil Agarwal said, "Q2 #GDP numbers show that economy is recovering. Government's efforts on stimulus and reform are showing results. Hopefully, we will have positive growth in H2 FY21 and double digit growth in FY22."
India Inc on Friday said the hike in railway passenger and freight fares will help in resource mobilisation, hoping that the higher fares will lead to better quality and safety of services offered by the Indian Railways, while asking the government to allow FDI in Railways.
India's GDP is estimated to contract by a record 7.7 per cent during 2020-21 as the COVID-19 pandemic severely hit the key manufacturing and services segments, as per government projections released on Thursday. Amid overall decline in economic activities, some respite was provided by the agriculture sector and utility services like power and gas supply, which have been projected to post positive growth during the current fiscal ending March 2021.
After contracting for two quarters in a row, the Indian economy entered the positive territory with a growth of 0.4 per cent in the October-December quarter, mainly due to good performance by farm, services and construction sectors, official data showed on Friday. Trade and hotel industry registered a contraction of 7.7 per cent during the third quarter this fiscal, as the sectors continued to suffer on account of coronavirus pandemic. According to the data released by the National Statistical Office (NSO), the farm sector recorded a growth of 3.9 per cent, and the manufacturing sector output grew by 1.6 per cent in the quarter under review.
The Reserve Bank had kept policy rate unchanged in its review on April 7.
The RBI had lowered policy rates by 0.50 per cent between January-March to prop up economic growth.
Welcoming the launch of the Bharatiya Mahila Bank, India Inc on Wednesday said the initiative will propel women's financial inclusion, encourage female entrepreneurs and empower women in the country.
The government's move to set up a regulator for the coal sector would help bring in transparency, encourage exploration and enhance quality of the dry fuel, India Inc said on Friday.
The industry urged the central bank to consider a rate even before the next monetary policy review on July 30.
As unemployment has gone up, countries have tightened their visas. We need to make sure there is no long-term impact, said CII.
The Cabinet on Thursday approved 49 per cent foreign investment in insurance companies through the Foreign Investment Promotion Board route ensuring management control in the hands of Indian promoters.
Led by Ajay Shriram, chairman and senior managing director, DCM Shriram, the CEO's delegation seeks to convey to their American counterparts the sense of optimism amongst Indian industry.
General Rawat also said that adequate focus must be on ensuring that "trial procedure" for procurement of military equipment does not linger on for too long, in an indication of his unhappiness over the delay in modernisation of armed forces.
'It is a balanced and prudent Budget that sets the foundation for future growth in the economy.'
Terming the rise in October retail inflation despite a bumper crop as "disturbing", India Inc said the government must immediately address supply side bottlenecks to bring down the consumer price inflation.
The UK voted to leave the European Union after 43 years.
RBI had previously cut repo rate by 0.25 per cent each in January and March.
The industry also emphasised on supply-side interventions by the government to tackle persistently high food inflation.
Congratulating Narendra Modi on becoming the Prime Minister, India Inc on Monday said it is looking forward to an era of renewed trust and expressed confidence that the nation will leapfrog into a higher orbit of growth creating more jobs, income and social stability.
A majority of respondents expect the number of jobs generated to increase in 5 years.
Emphasising that revival of growth should be the number one priority of the RBI at this time, industry groups said apprehensions about inflation rearing its head again may prove to be misplaced.
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Industry's demand for a reduction in the repo rate, currently 8 per cent, has gained momentum after wholesale and retail inflation eased in February.
India Inc said policymakers should take doable steps to revive fixed investments and production of capital goods
While India ranks 60, Switzerland, Sweden, the Netherlands, the US and UK retained their top spots as the most-innovative countries. China is at 22nd spot.
This is mainly due to GST impact on manufacturing and subdued farm output.
Showing signs of recovery, industrial production grew at 4.7 per cent in May, the highest since October 2012, on account of improved performance of manufacturing, mining and power sectors and higher output of capital goods.
Top companies added employees at 3% CAGR from 2003-04 to 2013-14, while revenues grew at 18%.
Implementation of GST is expected to increase the gross domestic product of the country.
The status quo decision came as a breather as only last week the RBI had pulled up banks for not helping it in monetary policy transmission.
Expressing disappointment over the contraction in industrial growth in October, India Inc has appealed to the Reserve Bank to cut interest rates to revive the manufacturing sector and ameliorate investments.
'The rate cut could have been higher in the current economic conditions which would have had a stronger impact on business sentiment and spurred investment in a big way.'
The Central bank primarily factors Consumer Price Index while deciding on policy rate.
The govt's willingness for change and 'feel good' factor has boosted sentiments.
Higher prices of onion and other vegetables and fruits pushed up inflation to 6.46 per cent in September.
With crude and commodity prices ebbing and the twin deficits under check, the Reserve Bank should have cut the key policy rate to push investments and boost economic growth, India Inc said.
India Inc on Wednesday said it looked forward to the new RBI Governor Raghuram Rajan initiating cut in interest rates and improving credit flow to crucial sectors like infrastructure to put economy back on high-growth path.
RBI Governor Raghuram Rajan expressed anguish at the banks' reluctance to pass on benefits of the earlier rate cuts.
Corporate India tempered its victory celebrations for the supposedly business-friendly Narendra Modi-led National Democratic Alliance's landslide electoral victory by highlighting the need for immediate steps to create jobs through inclusive economic growth.
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