Business
India's economy to be world's 2nd fastest growing at 6%
United Sep 27
The UN trade agency has projected India's growth rate for the current year to slowdown at 6 per cent from last year's 7.4 per cent, but the country will be the world's second fastest growing economy, lagging by just a tiny fraction behind China.
The Trade and Development Report 2019 released by the UN Conference on Trade and Development (UNCTAD) in Geneva on Wednesday, maps a global slowdown with the world growth rate dropping from 3 per cent in 2018 to a projected 2.3 for this year.
China with a 6.1 per cent growth rate for 2019 reclaims the title of the world's fastest
growing economy by being ahead of India by just 0.1 per cent.
The next global report that will look at growth rates across the world will be the World Economic Outlook from the International Monetary Fund (IMF) expected next month.
The UNCTAD report said that the slowdown in India "continues a decelerating trend which began four years ago".
"Growth projections for India have been marked down, because of a sharp fall to 5.8 per cent in the first quarter of 2019 (relative to the corresponding quarter of the previous year)," it said.
The report noted that "in Asia, the two economies that were among the fastest growing in the world, China and India, are showing signs of a loss of growth momentum".
The volume of India's exports that grew by 6.6 per cent in 2017, slowed down to 4.3 per cent last year, according to the report.
The rate of growth of imports showed a much bigger drop, from 11.7 per cent to 3.1 per cent during the same period.
"Together with a projected deceleration in the rate of growth in 2019 for India, where below-target collections from the recently introduced Goods and Services Tax have combined with fiscal consolidation efforts to limit public spending, will further slow growth in the Asian region as a whole," the report said.
UNCTAD saw ample job creation opportunities in clean energy and green sectors for India where unemployment has been growing.
"It is tempting to see them as potential foundations for local industrial development," the report said.
One barrier to the growth of the solar industry sector is the World Trade Organisation (WTO), which could derail India's green energy ambitions.
The incentives for domestic production of solar equipment have run afoul of WTO rules, which prohibit them, the report said.
"If trade rules continue to trump environmental and development concerns, it will be difficult to realise the full potential for a Global Green New Deal," it warned.
The Trade and Development Report 2019 released by the UN Conference on Trade and Development (UNCTAD) in Geneva on Wednesday, maps a global slowdown with the world growth rate dropping from 3 per cent in 2018 to a projected 2.3 for this year.
China with a 6.1 per cent growth rate for 2019 reclaims the title of the world's fastest
growing economy by being ahead of India by just 0.1 per cent.
The next global report that will look at growth rates across the world will be the World Economic Outlook from the International Monetary Fund (IMF) expected next month.
The UNCTAD report said that the slowdown in India "continues a decelerating trend which began four years ago".
"Growth projections for India have been marked down, because of a sharp fall to 5.8 per cent in the first quarter of 2019 (relative to the corresponding quarter of the previous year)," it said.
The report noted that "in Asia, the two economies that were among the fastest growing in the world, China and India, are showing signs of a loss of growth momentum".
The volume of India's exports that grew by 6.6 per cent in 2017, slowed down to 4.3 per cent last year, according to the report.
The rate of growth of imports showed a much bigger drop, from 11.7 per cent to 3.1 per cent during the same period.
"Together with a projected deceleration in the rate of growth in 2019 for India, where below-target collections from the recently introduced Goods and Services Tax have combined with fiscal consolidation efforts to limit public spending, will further slow growth in the Asian region as a whole," the report said.
UNCTAD saw ample job creation opportunities in clean energy and green sectors for India where unemployment has been growing.
"It is tempting to see them as potential foundations for local industrial development," the report said.
One barrier to the growth of the solar industry sector is the World Trade Organisation (WTO), which could derail India's green energy ambitions.
The incentives for domestic production of solar equipment have run afoul of WTO rules, which prohibit them, the report said.
"If trade rules continue to trump environmental and development concerns, it will be difficult to realise the full potential for a Global Green New Deal," it warned.
17 hours ago
Risk of famine still present in Gaza: WHO
17 hours ago
Over 400 hospitalised in Vietnam due to suspected food poisoning
17 hours ago
Germany summons Russian diplomat over cyberattack on ruling party
19 hours ago
Pew Research Center: Indian Migrants Among Top Three Asian Groups Sending Money Home
19 hours ago
Virginia Senator Hashmi is running for lieutenant governor and is trying to win over the party's endorsement.
19 hours ago
A vibrant and joyous Gujarat-Maharashtra Day celebration was conducted at the Indian Consulate in New York.
19 hours ago
Immigrants covered by Biden's health insurance programme will have more options
19 hours ago
Report suggests that US cows were likely infected with bird flu for at least four months prior to diagnosis.
19 hours ago
To back up Biden's claim that China, Russia, Japan, and India are "xenophobic," the White House has issued a statement.
20 hours ago
India retain top spot in ODIs, T20Is rankings after annual update
21 hours ago
Reluctant Rahul Gandhi finally steps in Raebareli to keep family flag high
21 hours ago
Ruchir Sharma's warning to West: Beware of bigger governments you wish for
21 hours ago
ChatGPT not reliable tool to gauge development delays in children, finds research