Going by the Rule of 70, India's GDP needs to expand at around 14 per cent from $2.8 trillion now to hit the $5 trillion goal that the Modi government has set for itself for 2024, a tough ask. We averaged at 7 per cent over past five years. So Einstein, gravity and other terms have entered the debate by now. We might actually need some bit of relativity to comfort ourselves.
STREET PULSE: Where we stand Asian stocks advanced on hints of progress in the US-China trade dispute and aggressive stimulus from the ECB to counter worries of a global economic slowdown.
Here is what to watch today…  | SGX Nifty traded 7 points higher at 7 am (IST), signalling flat trade ahead on Dalal Street. MSCI index for Asia-Pacific shares outside Japan ticked up 0.2%, while Japan's Nikkei rose 0.4%. |
| The Dow hit a seventh day of gains in a row Thursday, rising 46 points, after the US said it would delay some tariffs on Chinese imports. S&P500 rose 0.3%, and the Nasdaq 0.3%. |
Oil traded softer as a meeting of the Opec+ alliance yielded no decision on deepening crude supply cuts. Brent crude futures fell 0.2% to $60.29 a barrel while WTI crude lost 0.2% to $54.96.
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Green Shoots?... India's industrial growth picked up pace in July, providing some relief to a government battling to revive the slowing economy, but experts cautioned that the uptick may not last. Official IIP print for July showed 4.3% growth, much improved from 1.2% in June. Separately consumer inflation rose marginally to 3.21% in August from 3.15% in July, but remained well below RBI's target rate of 4%.
Read More | Maruti may not phase out diesel cars >>> |
| Easier licences likely for manufacturing >>> |
Half-Deal… The Trump administration officials have discussed offering a limited trade agreement to China that would delay and even roll back some US tariffs in exchange for Chinese commitments on intellectual property and agricultural purchases. President Trump on Thursday said he preferred a comprehensive trade deal with China, but did not rule out the possibility of an interim pact.
Read More A Cut Here, A Hit There… The GST Council could lower levies on auto, biscuits and other FMCG goods at the September 20 meeting. The panel may also discuss raising the lowest slab of 5% to as much as 8%. That could set the ball rolling for a major revamp of the GST structure as part of efforts to revive growth.
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Another NBFC Default… Foreign PE-backed NBFC Altico Capital, with more than Rs 4,000 crore of outstanding loans, has missed interest payments raising the spectre of another round of mark down of asset value by lenders and further restricting funding for the industry. The NBFC missed interest payment of Rs 19.97 crore on an overseas loan taken from Dubai-based Mashreq Bank, it said in a notification to BSE.
Read More Stimulus A No-No?... The Indian government has no space for a fiscal stimulus given that public sector borrowings are already elevated, foreign brokerage HSBC said. Even without a stimulus package, there is pressure on meeting the current year's fiscal deficit target, it said. Tax revenue is expected to be much below target and the Reserve Bank of India's dividend transfer is unlikely to fill the shortfall, the brokerage said.
Read More Meanwhile... The European Central Bank has cut interest rates further below zero and will start open-ended bond purchases as President Mario Draghi overcame critics of his stimulus policies to make a final run at reflating the euro area economy. The Governing Council reduced the deposit rate to minus 0.5% from minus 0.4%, and will buy debt at 20 billion euros ($22 billion) a month starting Nov. 1.
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