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GDP Fall: Bright Side


FullMoon

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Let's see how reliable this statement will be in the near future 

12 global companies evinced interest to shift base from China to India: FM Sitharaman

MUMBAI: Finance minister Nirmala Sitharaman on Saturday said about 12 global companies have evinced interest to shift their base from China to India, taking advantage of competitive tax rate of 15 per cent announced recently.In the biggest reduction in 28 years, the government in September reduced corporate tax rate by almost 10 percentage points in a bid to give a boost to the sagging economy.

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Chief Economic Advisor (CEA) K.V. Subramanian has expressed hope that the country's gross domestic product (GDP) is likely to pick up in the third quarter of the current financial."We are saying again that the fundamentals of the Indian economy continue to be strong. GDP is expected to pick in the quarter three," he said.Department of Economic Affairs (DEA) Secretary Atanu Chakraborty said that equity capital flows have been positive this year.Meanwhile, the eight-core industries recorded 5.8% decline in October from the 5.2% decline seen in September, said the government data."The combined index of eight core industries stood at 127 in October 2019 which declined by 5.8% as compared to the index of October 2018. Its cumulative growth during April to October 2019-20 was 0.2%," according to an official statement by the Ministry of Commerce and Industry.

Theindex of eight core industries comprises coal, crude oil, natural gas, steel, cement, electricity, fertiliser, and refinery products. The index makes up 40.27% of the Index of Industrial Production (IIP).Coal production declined by 17.6% in October versus the de-growth of 20.5%. The index was also dragged down by electricity which reported a plunge of 12.4% compared to a plunge of 3.7% in September.Crude oil production declined by 5.1% in October 2019 over the same month of last year. Cement production declined by 7.7% but fertiliser production increased by 11.8%. Petroleum refinery production too increased marginally by 0.4%.

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