India GDP to grow faster in FY18 at 7.5%: Moody's

Moody’s said the inflation rate in India has steadily declined to 3 per cent as of April

The Indian economy will grow at 7.5 per cent in the current fiscal, which rate will accelerate to 8 per cent in about four years, US rating agency Moody’s said on Wednesday ahead of the release of GDP figures for 2016-17 later in the day.

“We expect marginally faster growth in India. According to our forecast the economy will grow 7.5 per cent in fiscal year 2017 (2017-18) and 7.7 per cent in fiscal year 2018 (2018-19),” Moody’s Investors Service said in its Global Macro Outlook.

“Overall, we continue to believe that economic growth will gradually accelerate to around 8 per cent over the next three to four years,” it said,

The American agency also said that the negative impact of the November 8 demonetisation of high-value currency on the economy was limited in size and duration.

“The ruling BJP’s victory in the Uttar Pradesh state elections indicates that the government has remained politically popular despite the demonetisation exercise,” the report said.

The government has pushed through major reforms like further liberalising foreign direct investment (FDI) rules in a number of key sectors, the Direct Benefit Transfer scheme for food, fertiliser and kerosene subsidies, the Goods and Services Tax (GST) and a National Bankruptcy Code.

“Together, these will help reduce inefficiencies and improve trend growth over the long run,” Moody’s said.

The rating agency, however, cautioned that “persistent banking sector weakness from a high proportion of delinquent loans on bank balance sheets will weigh on growth, if not resolved, by constraining credit for investment-related activity”.

“Private sector investment has remained weak despite progress on reforms, suggesting that some hurdles to investment remain binding in many cases.”

Moody’s said the inflation rate in India has steadily declined to 3 per cent as of April, owing to weaker food price inflation.

“We believe that the inflation rate will rise to around 5 per cent by the end of this year, once the effect of this temporary factor fades,” it said. | READMORE…

Budget 2017: IBF seeks 'Infrastructure Status' for brodcasting industry

Ahead of the Union Budget 2017, a top body of broadcasters has written to the government seeking "Infrastructure Status" for the broadcasting industry.

According to sources, the Indian Broadcasting Foundation(IBF), a body which has leading broadcasters as its members, has in a representation to the Finance Ministry said the Indian broadcasting industry is a mass employment creator which as of date has employed nearly 10 million people across the value chain.

Given its large size and revenue projections, the sector is expected to contribute Rs 30,000 crore to Rs 35,000 crore in the form of direct and indirect taxes by 2020.

The broadcasters have argued that in the present era of convergence of telecommunication, information technology (IT) and broadcasting technology, the distinction between telecom services and broadcasting services has got blurred.

They have also mentioned that by way of a notification January 9, 2004 issued by the Ministry of Communication and Information Technology (Department of Telecommunications), the Centre has notified broadcasting services and cable services to be Telecommunication Service under TRAI Act 1997. Read Full Article

UN Report Says India to be Fastest-Growing Economy in 2016

Budget 2016 - India will be the world’s fastest growing large economy at 7.3 per cent in 2016, improving further to 7.5 per cent in the following year, a United Nations world economy report said on Friday.

“India’s economy, which accounts for over 70 per cent of South Asia’s GDP, is projected to grow by 7.3 per cent in 2016 and 7.5 per cent in 2017, slightly up from an estimated 7.2 per cent in 2015.”

Union Budget 2016-17 - India will be the fastest-growing large economy in the world, said World Economic Situation and Prospects 2016, which was released by the UN here.

The report said South Asia is expected to be the world’s fastest-growing region in 2016 and 2017.

Read Full Article Over Here : Business Standard News

Budget 2016: Budget May Offer TDS Relief To Taxpayers

The government is considering rationalising tax deducted at source, according to recommendations made by the R V Easwar Committee.

Officials said the changes in tax deducted at source (TDS) rates and thresholds would not have a significant revenue impact. Revision of the tiny annual limits, which were long overdue, would, however, benefit small depositors and pensioners, they added. "For the Budget 2016, we will be looking at recommendations that do not have large revenue implications. For the rest, we will have to do the math on the tax revenue foregone," said a government official.

The panel has suggested reducing the short-term capital gains tax on annual earning of less than Rs 5 lakh from trading of shares and not treating it as business income. This will have a significant revenue implication when the government is trying to lower the fiscal deficit to 3.5 per cent of the gross domestic product (GDP) in Budget 2016-17 from the projected 3.9 per cent in 2015-16.

Railway Budget 2016: Odisha Demands Rs 400 cr For New Rail Projects

The state government has raised a demand of Rs 400 crore in the Railway Budget for 2016-17 for funding nine new railway projects.

The new rail links proposed are Jeypore-Nabarangpur, Jeypore-Malkangiri-Bhadrachalam, Gunupur-Theruvali-Rayagada, Kendujhar-Badamapahar, Bargarh-Padampur-Nuapada, Burhamura-Chakulia, Puri-Konark, Rajathgarh-Tapang bypass and Khurda junction bypass.

The state has also reiterated its demand for allocation for ongoing/sanctioned Railway Budget 2016-17 projects like Khurda-Bolangir, Talcher-Bimlagarh, Angul-Sukinda, Paradip-Haridaspur and Jaleswar-Digha. Together, the government has demanded Rs 1050 crore for these projects.