The Asian Development Bank (ADB) cut India’s growth forecast to 6.5 per cent for the current fiscal, after the GDP growth rate dipping to a six-year low in the first quarter. “India’s growth forecast for fiscal year 2019 (FY20) is lowered to 6.5 per cent after growth slowed to 5 per cent in the first quarter, April- June,” said the ADB Outlook 2019 update. The funding agency cut India’s GDP growth estimate to 7 per cent for 2019-20 on the back of fiscal shortfall concerns. Abrupt declines in manufacturing and investment reflect uncertainty ahead of general elections, subdued lending by banks and other financial institutions, stress in the rural economy, and a weakening external outlook, it said. “India is expected to rebound to 7.2 per cent growth in fiscal 2020 (FY21) and join most other sub-regional countries in performing at or near their ADO 2019 growth forecasts for next year,” the ADB Outlook said.
Gujarat attracts 40% of new investments: Rupani
Lauding the central government’s measures to boost economic activity, Gujarat chief minister Vijay Rupani said the steps will provide impetus to Gujarat’s economic prospects, even as the state attracts 40% of all investments made in the country. “The reduction in corporate tax will benefit more companies of Gujarat,” he said. “At present, of the total new investment in the country, 40% of it comes to Gujarat, these are the official figures,” Rupani said, while adding that the CMO, industries department and other bodies are working to safeguard the interests of micro, small and medium enterprises (MSMEs) in the state. He referred to steps like providing financial aid to stalled construction projects and directing banks not to declare borrowings by MSMEs as NPAs till a certain time, saying that these were constructive measures for sustainable economic growth. “These steps will lead to long-term economic growth,” the CM said.
Nirav Modi opposes move
Nirav Modi, a key accused in the $2 billion PNB fraud case, urged a special court to set aside the Enforcement Directorate's (ED) plea to declare him as a fugitive economic offender under the fugitive economic offender (FEO) act. In July 2018, the central agency filed an application to declare Modi a fugitive economic offender. Modi's lawyers claimed that the ED was relying upon evidence and statements recorded under the Prevention of Money Laundering Act to seek a remedy under the FEO Act. This was not permissible under the FEO Act, they said. In a separate plea, Modi claimed that the agency's plea seeking to confiscate his property too did not comply with the FEO Act. Similar applications were also moved by Modi's uncle Mehul Choksi, another absconding accused in the case.
Bank of America to start operations in Gandhinagar
Bank of America, the second largest US bank, has decided to set up back-office operations in the special economic zone (SEZ) area developed by Gujarat International Finance Tec-City in Gandhinagar. “We recently cleared their proposal in record time of seven days,” said Amiya Chandra, development commissioner, Special Economic Zones. He did not share details of the bank's operations at GIFT City. Bank of America has taken six floors of one of the buildings in the SEZ part of GIFT City, sources added. “They have already been issued an occupancy certificate for an upcoming building. We hope they will move in fully over the next six months,” industry sources said. Sources said that the bank is expected to begin operations in November, with about 100 workers. “At present, there are 234 operational SEZs in India of which 20 SEZs are in the Gujarat zone. With around 10% of the functional SEZs of the country, this zone accounts for 30% of Indian exports from SEZs,” Chandra said.
