Wednesday May 23, 2018
Home World India’s...

India’s 7.5% growth to outpace China’s slowing economy this year: IMF

1
//
44
Republish
Reprint

IMF

 

Washington: India is set to decisively outpace China in economic growth this year, and emerge not just as the fastest-expanding economy but also as just a handful of countries to show some acceleration, as per the latest report of the International Monetary Fund (IMF).

The fund, in an update released here on Thursday, has projected India’s growth at 7.5 percent this year, against 6.8 percent for China. While the growth outlook on India for 2016 has been retained at 7.5 percent, that for China is pegged 50 basis points lower at 6.3 percent.

“Global growth is projected at 3.3 percent in 2015, marginally lower than in 2014, with a gradual pickup in advanced economies and a slowdown in emerging market and developing economies. In 2016, growth is expected to strengthen to 3.8 percent,” said the IMF update on World Economic Outlook.

“In emerging market economies, the continued growth slowdown reflects several factors, including lower commodity prices and tighter external financial conditions, structural bottlenecks, re-balancing in China, and economic distress related to geopolitical factors,” it said.

But in advanced economies, it said, the growth was projected to increase from 1.8 percent in 2014 to 2.1 percent in 2015 and 2.4 percent in 2016 – which was a more gradual pickup than what was forecast in the April scenario. It also remained positive on the overall outlook.

“A rebound in activity in a number of distressed economies is expected to result in a pickup in growth in 2016,” it said. While the update did not mention India in its commentary, the tables appended with the study gave the growth projections.

This apart, it said further increase in financial market volatility remained an important downside risk. “Term and risk premiums on longer-term bonds are still very low, and there is a possibility of markets reacting strongly to surprises in this context,” it said.

“Such asset price shifts also bear risks of capital flow reversals in emerging market economies.”

On the global economy, the fund did not paint a bright picture. In the first quarter of 2015 — the starting point for the latest update — world growth at 2.2 percent fell 80 basis points short of the forecast made in April 2015.

The shortfall, it said, reflected to an important extent an unexpected output contraction in the US, with attendant spillovers to Canada and Mexico. One-off factors like a harsh winter, closure of port closures and downsizing of expenditure in the oil economy weakened US activity.

“Outside North America, positive and negative surprises were roughly offsetting. Growth in output and domestic demand in emerging market and developing economies broadly weakened, as expected,” the outlook said.

On the oil scenario, the outlook said the prices rebounded more than expected in the April-June quarter of 2015, reflecting higher demand and expectations that oil out growth in the US will slow faster than previously forecast.

It, nevertheless, said the average annual oil price expected for 2015 at $59 a barrel was in line with the assumption in April, with a somewhat smaller increase forecast for 2016 and beyond. This is because the global supply was running well above the 2014 levels and inventories were rising.

Regarding the developments in Greece, the outlook said it had not resulted in any contagion of significance and that timely policy action would be able to manage such risks if they were to materialize.

“Nevertheless, recent increase in sovereign bond yields in some euro area economies reduce upside risks to activity in these economies and some risks of a reemergence of financial stress remain,” it said, adding a further dollar appreciation posed risks for emerging economies.

(IANS)

Click here for reuse options!
Copyright 2015 NewsGram

  • Vrushali Mahajan

    Great to know about India’s progress. This should definitely continue and India should be recognized as a developed nation.

Next Story

Diesel Exhaust Converted Into Ink by Indian Innovators To Battle Air Pollution

Supervised by young engineers, workers at the start-up company Chakr Innovation in New Delhi cut and weld sheets of metal to make devices that will capture black plumes of smoke from diesel generators and convert it into ink.

0
//
11
representational image. VOA

Supervised by young engineers, workers at the start-up company Chakr Innovation in New Delhi cut and weld sheets of metal to make devices that will capture black plumes of smoke from diesel generators and convert it into ink.

In a cabin, young engineers pore over drawings and hunch over computers as they explore more applications of the technology that they hope will aid progress in cleaning up the Indian capital’s toxic air – among the world’s dirtiest.

While the millions of cars that ply Delhi’s streets are usually blamed for the city’s deadly air pollution, another big culprit is the massive diesel generators used by industries and buildings to light up homes and offices during outages when power from the grid switches off – a frequent occurrence in summer. Installed in backyards and basements, they stay away from the public eye.

“Although vehicular emissions are the show stoppers, they are the ones which get the media attention, the silent polluters are the diesel generators,” says Arpit Dhupar, one of the three engineers who co-founded the start up.

The idea that this polluting smoke needs attention struck Dhupar three years ago as he sipped a glass of sugarcane juice at a roadside vendor and saw a wall blackened with the fumes of a diesel generator he was using.

It jolted him into joining with two others who co-founded the start-up to find a solution. Dhupar had experienced first hand the deadly impact of this pollution as he developed respiratory problems growing up in Delhi.

An Indian girls holds a banner during a protest against air pollution in New Delhi, India, Nov. 6, 2016.
An Indian girls holds a banner during a protest against air pollution in New Delhi, India, Nov. 6, 2016.

A new business

As the city’s dirty air becomes a serious health hazard for many citizens, it has turned into both a calling and a business opportunity for entrepreneurs looking at ways to improve air quality.

According to estimates, vehicles contribute 22 percent of the deadly PM 2.5 emissions in Delhi, while the share of diesel generators is about 15 percent. These emissions settle deep into the lungs, causing a host of respiratory problems.

After over two years of research and development, Chakr has begun selling devices to tap the diesel exhaust. They have been installed in 50 places, include public sector and private companies.

The technology involves cooling the exhaust in a “heat exchanger” where the tiny soot particles come together. These are then funneled into another chamber that captures 70 to 90 percent of the particulate matter. The carbon is isolated and converted into ink.

Among their first clients was one of the city’s top law firms, Jyoti Sagar Associates, which is housed in a building in Delhi’s business hub Gurgaon.

Making a contribution to minimizing the carbon footprint is a subject that is close to Sagar’s heart – his 32-year-old daughter has long suffered from the harmful effects of Delhi’s toxic air.

Motorists drive surrounded by smog, in New Delhi, India, Nov. 8, 2017.
Motorists drive surrounded by smog, in New Delhi, India, Nov. 8, 2017.

“This appealed to us straightaway, the technology is very impactful but is beautifully simple,” says Sagar. Since it could be retrofitted, it did not disrupt the day-to-day activities at the buzzing office. “Let’s be responsible. Let’s at least not leave behind a larger footprint of carbon. And if we can afford to control it, why not, it’s good for all,” he says.

At Chakr Innovation, cups, diaries and paper bags printed with the ink made from the exhaust serve as constant reminders of the amount of carbon emissions that would have escaped into the atmosphere.

There has been a lot of focus on improving Delhi’s air by reducing vehicular pollution and making more stringent norms for manufacturers, but the same has not happened for diesel generators. Although there are efforts to penalize businesses that dirty the atmosphere, this often prompts them to find ways to get around the norms.

Also Read: Exposure to Traffic-Related Pollution Poses Threat of Asthma in Kids

Tushar Mathur who joined the start up after working for ten years in the corporate sector feels converting smoke into ink is a viable solution. “Here is a technology which is completely sustainable, a win-win between businesses and environment,” says Mathur. (VOA)