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Nirmala sitharaman asks PSBs to seek ideas from branches for achieving $5 trillion economy; to prepare roadmap for banking sector

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CII assures of investment in J&K to FinMin Nirmala Sitharaman

The finance ministry has asked public sector banks (PSBs) to initiate a month-long consultation process with officers starting from branch level to seek suggestions for achieving a $5-trillion economy in five years.

The suggestions emanating from a month-long campaign beginning on Saturday (today) will be used as inputs to prepare a roadmap for the future growth of the banking sector.

According to a communication by the ministry to the heads of PSBs, it will be a bottom-up consultative process from the branch level onwards which will involve discussions at the branch or regional level, state level and national level.

The consultation process is aimed at aligning the banking sector with national priorities, stimulating ideas and inculcating a sense of involvement among bankers at the branch level, it said.

The campaign envisages not only performance review but synchronisation of banking with region-specific issues and their growth potential.

It also aims to find out role of PSBs as active partners in the Indian growth story for the next five years. The country has set a goal of achieving a $5-trillion economy by 2024-25.

It will also find solution for enhanced ease of living making banks more responsive to customers and challenges before banks and their preparedness in areas such as cybersecurity and data analytics.

There will be focus on raising credit offtake for supporting economic growth credit support to infrastructure and role of the banking sector in doubling farmers’ income and water conservation.

Besides, supporting for green economy, improving education loan and other sectors such as micro, small and medium enterprises (MSMEs) and exports.

In addition, there will be focus on pushing digital economy and financial inclusion, it said.

The consultative process will be divided into three stages with the first being at the branch or regional level, followed by the state level. It will culminate with a national-level two-day brainstorming in Delhi.

The campaign comes at a time when the economy is facing headwind and it has slowed to a 5-year low of 6.8 percentage.

There are ominous signs showing that slowdown may be deep. The automobile sector is facing its worst crisis in two decades and reports suggest thousands of job losses in the auto and ancillary industry.

In the real estate sector, the number of unsold homes has increased, while fast-moving consumer goods (FMCG) companies have reported a decline in volume growth in the first quarter.

Though lending by banks to industries has shown a significant jump from 0.9 per cent in the June 2018 quarter to 6.6 per cent in the corresponding period this year, the same to job-creating MSME sector has slipped from 0.7 percent to 0.6 percent during the same period.

However, silver lining amid gloom is improvement in non-performing assets of the banks.

Last month, Finance Minister Nirmala Sitharaman told Parliament that total bad loans of commercial banks declined by Rs 1.02 lakh crore to Rs 9.34 lakh crore in 2018-19, on the back of steps taken by the government.

ECONOMY

Export growth rate drops to 6% but the Modi govt focuses on $5 trillion company

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Export growth rate drops to 6% but the Modi govt focuses on $5 trillion company

According to the official data released on India’s exports in August have dropped by 6.05 percent to $26.13 billion in comparison to the August 2018 mark which shows that in first five months of this fiscal, overall exports are down 9 percent to $15.33 billion.

Friday’s data showed a narrow trade deficit in August to $13.45 billion.

Earlier the minister had set a target by stating “India must bring back 19-20 percent export growth to become a $5 trillion economy.

The growth rate of export had fallen 41 months low in June this year as all major Foreign exchange earners such as petroleum oil, gems and jewelry and engineering goods recorded poor performance.

The imports in the same month had hit a 34 month low by a fall of 9.06 percent. The trade deficit had gone down by nearly eight percent to $15.28 billion in June which was three month low.

Outbound trade in June had diminished to a very low 9.7 percent after registering a rise of 3.93 percent in May 2019.

In August, the oil imports had shrunk by 8.9 percent to $10.88 billion while the non-oil imports were down by 15 percent to $28.71 billion.

A negative growth has been registered in the exports of gems and jewelry, and the engineering goods.

Cumulatively, during April-August 2019, exports were down 1.53 percent to $133.54 billion, while imports contracted by 5.68 percent to $206.39 billion.

Despite the nearing festival season, the gold imports have plunged 62.49 percent to $1.36 billion in August 2019.

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ECONOMY

Manmohan Singh claimed that flawed Policies ruined Economic growth of India

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Manmohan Singh claimed that flawed Policies ruined Economic growth of India

On Thursday Former Prime Minister Manmohan Singh attacked the government for its flawed policies that have caused the current economic slowdown and asked Congress Party leaders to hit the streets to inform people about the policies of the earlier UPA government at the Centre during the global economic recession.

The former Prime Minister’s views were supported by Congress General Secretary Priyanka Gandhi Vadra who was also present in the meeting along with several other senior leaders.

Manmohan Singh told party leaders that when the economic recession had hit the global economy our government was able to revive the economy while the current government’s flawed policies on the economy are the reason for the Slowdown.

As per the source, Manmohan Singh emphasized economic slowdown as a great challenge for the current Narendra Modi government.

 The sources said that “Manmohan Singh told the party leaders that unemployment has increased in recent times as many sectors are facing the heat of economic slowdown and gross domestic product (GDP) is continuously falling,”

He also revealed that the former Prime Minister said Congress leaders need to hit the streets and tell people about the policies of the Congress during 2007-09 when the global recession had impacted India and how the then government was able to revive the economy and generate jobs.

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ECONOMY

“Maths did not help Einstein discover gravity” comments Piyush Goyal

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“Maths did not help Einstein discover gravity” comments Piyush Goyal

On  Thursday Union Commerce Minister Piyush Goyal was attending a Board of Trade meeting when he said that “Maths did not help Einstein discover gravity”

Piyush Goyal in an attempt of defending the government against the allegations of an economic slowdown. He was trying to answer the question of how projected GDP growth rates which is not aligned with $5 trillion dollar economy mission.

Piyush Goyal in an impassioned way against the GDP calculations made by experts and said that “Don’t get into the calculations that you see on television…don’t get into those maths. Maths has never helped Einstein discover gravity.”

He then continues: “If he [Einstein] had only gone through structured formulae and what was past knowledge, I don’t think there would have been any innovation in the world.”

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