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Indian economy’s growth estimated at 7.1% in 2016-17: Government

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New Delhi, Jan 6 : The Indian economy is expected to grow at 7.1 per cent this fiscal — without the impact of demonetisation being taken into consideration, according to an official advance estimate for the year released on Friday. The actual expansion in the first six months of 2016-17 stood at 7.1 per cent.

The country’s gross domestic product will grow at 7.1 per cent in 2016-17 compared with 7.6 per cent in 2015-16, according to the estimate of national income for 2016-17 released by the Central Statistics Office (CSO).

“The growth in deposits is an outlier, hence November data was not used for the financials,” India’s Chief Statistician T.C.A. Anant said, implying that demonetisation is not a normal factor in the calculation of annual national income.

The CSO has primarily used seven-month data to extrapolate for the full fiscal.

The anticipated growth of real GVA (gross value added, which excludes taxes and subsidies) in 2016-17 is 7 per cent against 7.2 per cent in 2015-16, said an official statement.

The GVA at basic prices for 2016-17 for manufacturing sector is estimated to grow by 7.4 per cent as compared to growth of 9.3 per cent in 2015-16.

The agriculture, forestry and fishing sector is likely to show a growth of 4.1 per cent in its GVA during 2016-17, as against the previous year’s growth rate of 1.2 per cent.

The estimated growth in GVA for financial, insurance, real estate and professional services sector during 2016-17 is placed at 9.0 per cent as compared to growth of 10.3 per cent in 2015-16.

The GDP advance estimates, which are normally released in February have been released earlier this year since the government plans to prepone the presentation of the Union Budget to February 1.

While announcing its monetary policy review last month, the Reserve Bank of India acknowledged the demonetisation factor and lowered their GVA growth estimates for the current fiscal to 7.1 per cent from the 7.6 per cent forecast earlier.

The International Monetary Fund had in October projected India’s GDP growth at 7.6 per cent in 2016-17. The Finance Ministry’s Economic Survey forecast a GDP growth in the range of between 7 per cent and 7.5 per cent.

On November 8, Prime Minister Narendra Modi announced that Rs 1,000 and Rs 500 notes were no longer legal tender, saying the move was aimed to eliminate black money, counterfeit currency and terror financing.

The Nikkei Purchase Managers’ Index (PMI) survey released earlier this month showed that demonetisation provoked a downturn both in Indian manufacturing and services growth in December.

Besides, the output of India’s eight infrastructure industries in November 2016 increased by 4.9 per cent, but fell sequentially as compared to the 6.6 per cent growth logged in October.

The GDP advance estimates have taken into account the data on industrial production till October, corporate results till end September and the data on bank deposits and credits only till end-October.

“Because it is not an ordinary event, nobody’s assessment is fact-based,” the Chief Statistician said with reference to other estimates allowing for the depressive impact of demonetisation.

He also said the CSO does not use indicators based on money supply in their computation of national income.

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Key Indian equity indices open flat

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Mumbai, April 20: The key Indian equity indices opened on a flat note on Friday.

At 9.17 a.m., the wider Nifty50 of the National Stock Exchange (NSE) traded at 10,558.15 points, down 7.15 points or 0.07 per cent from the previous close at 10,565.30 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 34,434.14 points, traded at 34,414.73 points (9.17 a.m.) — down 12.56 points or 0.04 per cent — from its previous close at 34,427.29 points on Thursday.

The BSE market breadth so far was bearish with 710 declines and 507 advances.

IANS

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Key equity markets rise on Asian cues, supportive metal, IT stocks

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Mumbai, April 19:  The key Indian equity markets traded in the positive territory on Thursday afternoon tracking strong cues from the Asian markets.

Heavy buying in the metal, IT and capital goods stocks also helped the market sentiment to remain positive.

So far, the S&P BSE metal index surged around 558.59 points, followed by the IT stocks which edged up by 125.58 points and capital goods stocks, by 120.60 points.

At 1.20 p.m., the wider Nifty50 on the National Stock Exchange (NSE) traded higher by 33.40 points or 0.32 per cent at 10,559.60 points.

The barometer 30-scrip Sensitive Index (Sensex) of the BSE, which opened at 34,403.67 points, traded at 34,412.41 points (1.20 p.m.) — up 80.73 points or 0.24 per cent from its previous session’s close.

The Sensex has so far touched a high of 34,478.82 points and a low of 34,358.91 during the intra-day trade.

The BSE market breadth was bullish with 1,265 advances and 1,082 declines.

“Markets gained in early morning trade as global Asian indices traded in green, following the US markets which closed with one per cent up-move,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.

On Wednesday, profit booking, along with heavy selling pressure in the banking sector stock, led the key Indian equity indices to break their nine-day gaining streak and end in red.

The Nifty50 fell by 22.50 points or 0.21 per cent to close at 10,526.20 points on Wednesday, and the Sensex closed at 34,331.68 points — down 63.38 points or 0.18 per cent.

On Thursday, the major gainers on the BSE were Tata Steel, Yes Bank, Bharti Airtel, Tata Consultancy Services and ONGC while Axis Bank, HDFC, Sun Pharma, Coal India and ICICI Bank were among the top losers.

On NSE, the top gainers were Hindalco, Vedanta and Tata Steel and major losers were BPCL, Hindustan Petroleum and Indian Oil Corp.

IANS

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CBI arrests 3 company directors in Rs 2,654 cr bank fraud case

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CBI

New Delhi/Ahmedabad, April 18: The CBI has arrested three promoter-directors of a Vadodara-based company in connection with its ongoing investigation into a case of Rs 2,654.40 crore fraud committed on a consortium of banks, officials said on Wednesday.

A Central Bureau of Investigation (CBI) official told IANS: “The agency has arrested the promoter-directors of the Diamond Power Infrastructure Ltd (DIPL) Suresh Narain Bhatnagar, his two sons Amit Suresh Bhatnagar and Sumit Suresh Bhatnagar.”

The CBI located the accused in Udaipur in Rajasthan on Tuesday evening with the assistance of Gujarat Police and arrested them on Wednesday morning.

The official said they would be produced before the Special Judge of CBI Cases in Ahmedabad.

On March 26, the CBI filed a case against DPIL and its directors for defrauding the consortium of 11 banks of Rs 2,654.40 crore. The loan availed by them was declared a non-performing asset (NPA) in 2016-17.

Since the filing of case, the agency has carried out searches at the corporate office, two factory premises and the residences of the directors of the firm.

According to the CBI FIR, the DPIL, which is engaged in the production of cables and other electrical equipment, fraudulently availed credit facilities since 2008, leaving behind a total outstanding debit of Rs 2,654.40 crore as of June 29, 2016.

The agency said that the company managed to get term loans and credit facilities thought it figured in the Reserve Bank of India’s list of defaulters and the caution list of Export Credit Guarantee Corp of India (ECGCI) at the time of initial sanction of credit limits by the consortium.

At the time of consortium’s formation in 2008, Axis Bank was the lead bank for the term loan and the Bank of India was the lead bank for cash credit (CC) limits.

The Bank of India, which tops the list with Rs 670.51 crore of loans, is followed by Bank of Baroda (Rs 348.99 crore), ICICI Bank (Rs 279.46 crore), State Bank of India (Rs 266.37 crore), Axis Bank (Rs 255.32 crore), Allahabad Bank (Rs 227.96), Dena Bank (Rs 177.19 crore), Corporation Bank (109.12 crore), Exim Bank of India (Rs 81.92 crore), IOB (Rs 71.59) and the IFCI Bank (58.53 crore).

The company, allegedly with the support of officials from various banks, managed to obtain enhancement in credit facilities.

The FIR said the DPIL, through its founder and directors associated in the criminal conspiracy with the unidentified bank officials of various banks, cheated those banks by way of misappropriating public funds through falsification of accounts, creation of false documents, forgery of records and knowingly using such records as genuine.

IANS

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