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As per Assocham, the Indian economy may reach 7% in 2018

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As per Assocham, the Indian economy may reach 7% in 2018.
As per Assocham, the Indian economy may reach 7% in 2018. IANS
  • Because of demonitisation, the economy may reach 7% in 2018: Assocham
  • Inflation may range between 4-5.5 per cent towards the second half of the next calendar year
  • Assocham expects the forthcoming Union Budget to be “heavily tilted” towards the farmers

New Delhi, Dec 24, 2017: With government policies set to tilt more towards the “stress-ridden rural landscape” next year in the run-up to the 2019 Lok Sabha elections, the Indian economy may reach a 7 per cent growth in 2018 while recovering from the lingering effects of demonetisation and GST, industry chamber Assocham said on Sunday.

“After ‘disruptions’ from the lingering effects of demonetisation and GST roll-out, the Indian economy may reach a 7 per cent growth in 2018 with government policies tilting towards the stress-ridden rural landscape in the penultimate year before the Lok Sabha elections,” according to the industry body’s “Year-Ahead Outlook”.

“Against GDP growth of 6.3 per cent in the second quarter of 2017-18, the economic expansion may reach the crucial 7 per cent mark by the end of September 2018 quarter, while inflation may range between 4-5.5 per cent towards the second half of the next calendar year with the monsoon being a key imponderable,” it said.

Assocham President Sandeep Jajodia said the projections were based on the assumption of stability in government policies, good monsoons, pick-up in industrial activity and credit growth as also stability in the foreign exchange rates.

“The worries on account of crude oil shooting up are likely to abate, if there are no fresh geo-political shockers.”

According to the Assocham outlook, while the underlying bullish sentiment should continue to prevail in the Indian stock market in 2018, the returns on equity may not be as robust as in 2017.

“This is because the 2017 bull run has already factored in the return of growth steadiness in 2018 and the corporate earnings witnessing a pick-up,” it said.

The industry lobby said in the run-up to state assembly elections in several politically important states, the political economy is set to tilt towards the farm sector “which has been witnessing some stress”.

“The stress in the agriculture sector is traceable to lack of reforms in the rural economy. Despite political promises, several of the states have not been able to reform the APMC Act, which restricts farmers to sell their produce to a particular set of cartels.”

Assocham expects the forthcoming Union Budget to be “heavily tilted” towards the farmers while the industrial focus would be on sectors which create jobs.

“A realisation seems to be dawning that growth per se is not enough, the benefits must be seen in the form of higher employment. The year 2018 would see policies in this direction”, the statement added. (IANS)

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2018 Fourth-hottest Year Since 1880; Earth Set to Get Warmer, Says NASA

"The impacts of long-term global warming are already being felt a" in coastal flooding, heat waves, intense precipitation and ecosystem change," said Schmidt

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Earth depletion
Earth depletion, Pixabay

Earth’s global surface temperatures in 2018 were the fourth warmest since 1880 and the planet will warm further, especially since greenhouse gas emissions are continuing to rise, Nasa and the National Oceanic and Atmospheric Administration (NOAA) have said.

Global temperatures in 2018 were 0.83 degrees Celsius warmer than 1951 to 1980, according to scientists at Nasa’s Goddard Institute for Space Studies (GISS) in New York.

Globally, 2018’s temperatures ranked behind those of 2016, 2017 and 2015. The past five years are, collectively, the warmest years in the modern record.

“2018 is yet again an extremely warm year on top of a long-term global warming trend,” GISS Director Gavin Schmidt said in a statement on Wednesday.

Since the 1880s, the average global surface temperature has risen about 1 degree Celsius.

Kepler, NASA, tissue
NASA. Pixabay

This warming has been driven in large part by increased emissions into the atmosphere of carbon dioxide and other greenhouse gases caused by human activities.

“Weather dynamics often affect regional temperatures, so not every region on Earth experienced similar amounts of warming,” said NOAA.

Warming trends are strongest in the Arctic region, where 2018 saw the continued loss of sea ice.

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“In addition, mass loss from the Greenland and Antarctic ice sheets continued to contribute to sea level rise.

“Increasing temperatures can also contribute to longer fire seasons and some extreme weather events.

“The impacts of long-term global warming are already being felt a” in coastal flooding, heat waves, intense precipitation and ecosystem change,” said Schmidt. (IANS)