7 November 2017

  |  CBI India

Update

CBI India Update October 2017

As the Indian economy is coping with the sobering double doses of demonetisation and teething troubles related to introduction of the Goods and Services Tax, the last one month has been one of great debate about its health.

CBI India Update October 2017

From within the ruling Bharatiya Janata Party (BJP), senior member and former Finance Minister Mr Yashwant Sinha called out the government on its poor performance in a scathing article.

The government’s actions were defended by Prime Minister Mr Narendra Modi, saying that the structural reforms were needed to take India to the next league of development. Read his comments here.

Meanwhile the International Monetary Fund (IMF) has pared India’s growth prediction for this year  to 6.7% which is 0.5% less than earlier predictions. Read more here.

However, IMF Managing Director Ms Christine Lagarde recently said that the Indian economy is on a ‘very solid track’ in the mid-term, likening the structural reforms to ‘fixing your roof when the sun is shining’.

What is worrying economists is that, current account deficit on first quarter of the current financial year is at its highest in four years, at 2.4% of GDP at $14.3 billion, according to the Reserve Bank of India. This was driven by rising imports of gold, which were 69% higher year-on-year.

However, there is need to believe the worst is already over, according to the new NITI Aayog Chairman Mr Rajiv Kumar in his first ever interview after taking charge. Read his interview here.

In the UK, India will be celebrating ‘Make in India’ week in the UK between 6 and 10 November 2017. For more information please contact Shruti Chandra from Invest India, India’s nodal investment promotion agency.

Meanwhile it is election time in some parts of India. The Election Commission has recently announced that the election for the state legislature in Himachal Pradesh will be held on 9 November and whilst no dates have been announced yet for Gujarat, it is believed this will happen sometime in December.

Here are some of the important highlights in the past month.

Maharashtra on track to become a trillion dollar economy

The western state of Maharashtra is set to become India’s first state with a $1 trillion economy due to impetus through infrastructure development in the last three years, claims the state’s Chief Minister Mr Devendra Fadnavis. Read more here.

India’s job situation recovers slightly

The last quarter of 2017 is expected to see a slight improvement in hiring sentiments in India, making it the third most optimistic market for skilled workers, after Japan and Taiwan. Marred by the demonetisation and the global slowdown, India witnessed low employers’ confidence and subsequently, lower hiring. Read more here.

Infra investment and bankruptcy reforms: twin priorities of government

Getting investment in the infrastructure sector and bankruptcy reforms are the two issues which are on the top of the government’s agenda. Read the interview of India’s economic affairs secretary S C Garg here.

MEMBER NEWSMAKERS

Rolls-Royce bets big on gas turbine engine technology with DRDO

British jet engine-maker Rolls-Royce is betting big on developing gas turbine technology in India in collaboration with the Defence Research and Development Organisation (DRDO). It also planning to introduce the Trent 700 jet engines to India. Read more here.

India’s growth holds exciting potential for M&S

Marks & Spencer (M&S) is keen to improve local sourcing in India as it will help the British retailer remain competitive, says James Munson, the new managing director of M&S in India, Read his interview here.

Tata Motors mulling 12 new launches in CV, PV space over 3 yrs

Tata Motors is mulling launches of 12 new models in commercial vehicle (CV) and passenger vehicle segments over the next three years. The company plans to launch six new cars over the next three years. These cars have been codenamed X-451, X-422, X-445, X-434, X-441 and X-442. Cars part of the pipeline include entry-level small car, mid-sized sedan and compact SUVs. Read more here.

Shell to fuel energy startups in India

British-Dutch oil major Shell's Indian subsidiary on Monday unveiled a programme to support energy startups in India by offering to work with them for six months. Read more here.

ON THE RADAR

Growth in India’s states

Maharashtra remains India’s largest state economy while Arunachal Pradesh and Jammu and Kashmir are the fastest growing states in the country. Read a report on the latest update from the Central Statistics Office.

Wishing everyone a safe and sparkling Diwali 2017.