World Bank steps up pressure, tells India to quickly "reform" economy, lest 7.7% growth not achieveable in 2017

By A Representative
Amidst continued apprehensions that Prime Minister Narendra Modi does not seem interested in his announced neo-liberal "economic reforms" to further open up the Indian economy to world investors, the World Bank has stepped up its pressure saying India can achieve 7.7 per cent rate of growth in 2017 only if it early quickly moves in that direction; lest it would miss the bus.
The World Bank, even as releasing its report titled, "South Asia Economic Focus Spring 2016: Fading Tailwinds", has stated, "Economic growth in India expected to be 7.7 percent in 2017 compared to 7.5 percent in 2015", but warns Indian policy makers that "delays in the adoption and implementation of key reforms could affect investor sentiment."
The remark comes amidst the Government of India failing to bring about a consensus on dropping what the World Bank believes was a "retrograde" land acquisition Act, 2013. Also, there are few efforts, the World Bank point of view, to try to drop subsidies going into the agriculture sector.
It said, "Favorable overall trends mask important underlying divergences: between urban and agricultural households; between domestic and external demand; and between public and private capital expenditure, which should be addressed."
Pointing out that, thanks to India, South Asia "remains world's fastest growing region, but should be vigilant to fading tailwinds, it said the country's economy can look up if it is "supported by a rebound in agriculture and stimulus from civil service pay reforms", the World Bank underlines, the region "should worry about global turbulent."
The World Bank said, "Led by robust growth in India, South Asia shows resilience in the face of turbulent international markets and remains the fastest-growing region in the world, with economic growth forecasted to gradually accelerate from 7.1 percent in 2016 to 7.3 percent in 2017."
In a twice-a-year report, "South Asia Economic Focus", the World Bank said, "The region’s economic performance prospects remain strong due to its limited exposure to global turbulence, coupled with increasing investment activity."
"However", it pointed out, "There are also signs of fading tailwinds. Capital flows to the region have declined and remittances from oil exporting countries have started to weaken."
It further said, "Fuel and food prices remain low but are unlikely to keep falling. As a result overall output growth is slower than previously anticipated and inflation has recently been creeping up."
"Given its weight in the region, India sets the pace for South Asia as a whole", the World Bank said.
It added, "Economic activity is expected to accelerate from 7.5 percent in FY2016 to 7.7 percent in FY2017 based on the expectation of strong private investment, a push in infrastructure spending, an improved investment climate, and deleveraged corporate and financial balance sheets."
Quoting Annette Dixon, World Bank South Asia Vice President, the report said, “However, fiscal and financial vulnerabilities remain and countries should strive to address them through generating revenue and creating more fiscal space.”
The report’s analysis of fiscal policy across the region suggests that governments need to find a balanced path towards fiscal consolidation.
“Fiscal policy has a wide range of impacts for development. The fiscal deficit affect macroeconomic stability, capital expenditures are needed for growth, and taxes and social spending matter for equity,” the report quotes World Bank South Asia Chief Economist Martin Rama as saying.
"With the currently low oil prices, this is also an opportune time for South Asian policy makers to introduce or expand explicit carbon taxes. This would improve environmental and fiscal sustainability at the same time”, Rama insisted.
"Many South Asian countries show potential for accelerated growth in the short to medium term. However, the tailwinds of high levels of remittances coupled with low oil prices may be slowing down so countries should be well prepared for a more difficult global environment", the report said.

Comments

A comrade in culture and controversy: Yao Wenyuan’s revolutionary legacy

By Harsh Thakor* This year marks two important anniversaries in Chinese revolutionary history—the 20th death anniversary of Yao Wenyuan, and the 50th anniversary of his seminal essay "On the Social Basis of the Lin Biao Anti-Party Clique". These milestones invite reflection on the man whose pen ignited the first sparks of the Great Proletarian Cultural Revolution and whose sharp ideological interventions left an indelible imprint on the political and cultural landscape of socialist China.

Ahmedabad's Sabarmati riverfront under scrutiny after Subhash Bridge damage

By Rosamma Thomas* Large cracks have appeared on Subhash Bridge across the Sabarmati in Ahmedabad, close to the Gandhi Ashram . Built in 1973, this bridge, named after Subhash Chandra Bose , connects the eastern and western parts of the city and is located close to major commercial areas. The four-lane bridge has sidewalks for pedestrians, and is vital for access to Ashram Road , Ellis Bridge , Gandhinagar and the Sabarmati Railway Station .

The Vande Mataram debate and the politics of manufactured controversy

By Vidya Bhushan Rawat* The recent Vande Mataram debate in Parliament was never meant to foster genuine dialogue. Each political party spoke past the other, addressing its own constituency, ensuring that clips went viral rather than contributing to meaningful deliberation. The objective was clear: to construct a Hindutva narrative ahead of the Bengal elections. Predictably, the Lok Sabha will likely expunge the opposition’s “controversial” remarks while retaining blatant inaccuracies voiced by ministers and ruling-party members. The BJP has mastered the art of inserting distortions into parliamentary records to provide them with a veneer of historical legitimacy.

Farewell to Robin Smith, England’s Lionhearted Warrior Against Pace

By Harsh Thakor* Robin Smith, who has died at the age of 62, was among the most adept and convincing players of fast bowling during an era when English cricket was in decline and pace bowling was at its most lethal. Unwavering against the tormenting West Indies pace attack or the relentless Australians, Smith epitomised courage and stroke-making prowess. His trademark shot, an immensely powerful square cut, made him a scourge of opponents. Wearing a blue England helmet without a visor or grille, he relished pulling, hooking and cutting the quicks.

No action yet on complaint over assault on lawyer during Tirunelveli public hearing

By A Representative A day after a detailed complaint was filed seeking disciplinary action against ten lawyers in Tirunelveli for allegedly assaulting human rights lawyer Dr. V. Suresh, no action has yet been taken by the Bar Council of Tamil Nadu and Puducherry, according to the People’s Union for Civil Liberties (PUCL).

Latur’s quiet rebel: Dr Suryanarayan Ransubhe and his war on Manuvad

By Ravi Ranjan* In an India still fractured by caste, religion, and language, where narrow loyalties repeatedly threaten to tear the nation apart, Rammanohar Lohia once observed that the true leader of the bahujans is one under whose banner even non-bahujans feel proud to march. The remark applies far beyond politics. In the literary-cultural and social spheres as well, only a person armed with unflinching historical consciousness and the moral courage to refuse every form of personality worship—including worship of oneself—can hope to touch the weak pulse of the age and speak its bitter truths without fear or favour.

Differences in 2002 and 2025 SIR revision procedures spark alarm in Gujarat

By A Representative Civil rights groups and electoral reform activists have raised serious concerns over the ongoing Special Intensive Revision (SIR) of electoral rolls in Gujarat and 11 other states, alleging that the newly enforced requirements could lead to large-scale deletion of legitimate voters, particularly those unable to furnish documentation linking them to the 2002 electoral list.

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

Proposals for Babri Masjid, Ram Temple spark fears of polarisation before West Bengal polls

By A Representative A political debate has emerged in West Bengal following recent announcements about plans for new religious structures in Murshidabad district, including a proposed mosque to be named Babri Masjid and a separate announcement by a BJP leader regarding the construction of a Ram temple in another location within Behrampur.

Search This Blog