In­dia Eco­nomic Up­date

In­dia has put up its most im­pres­sive show in the Do­ing Busi­ness Re­port, 2018 of The World Bank. Of the 190 coun­tries ranked in the study, In­dia was ranked 100. In­dia has jumped 30 places from last year’s rank­ing.

Realty Plus - - Table Of Content - Ex­cerpts - Re­search Re­port by Knight Frank In­dia Pvt. Ltd Oc­to­ber 2017

The Do­ing Busi­ness Re­port is an as­sess­ment of 190 economies and­cov­ers 10 in­di­ca­tors that span the life­cy­cle of a busi­ness. Of the 10 in­di­ca­tors on which a coun­try is ranked, In­dia has im­proved its rank in six of the in­di­ca­tors. In­dia is the only coun­try in South Asia and among the BRICS economies to fea­ture among the most im­proved economies

the Marked im­prove­ment Made by in­dia • On the “Re­solv­ing In­sol­vency” pa­ram­e­ter, In­dia’s rank im­proved from 136 to 103 • On the “Pay­ing Taxes” pa­ram­e­ter,

rank im­proved from 172 to 119 • For “Get­ting Credit” the rank has

im­proved from 44 to 29 • On the “En­forc­ing Con­tracts” pa­ram­e­ter In­dia’s rank im­proved from 172 to 164 • For “Pro­tect­ing Mi­nor­ity In­vestors” In­dia’s rank im­proved­from 13 to 4 • On “Con­struc­tion Per­mits”, the

rank im­proved from 185 to 181

slip­ping con­sumer con­fi­dence

As per the Con­sumer Con­fi­dence Sur­vey con­ducted by therbi, 34.6% of the re­spon­dents believe that the gen­eral eco­nomic con­di­tion had im­proved in Septem­ber 2017 down from 44.6% in Septem­ber 2016. Fur­ther, 40.7% of the re­spon­dents felt that the eco­nomic sit­u­a­tion had wors­ened in Septem­ber 2017, as against 25.3% dur­ing the same pe­riod last year. In the back­drop of a wors­en­ing eco­nomic sce­nario, em­ploy­ment prospects were the big­gest worry of the re­spon­dents.

The Cur­rent Sit­u­a­tion In­dex, which mea­sures con­sumer sen­ti­ments about the present eco­nomic sit­u­a­tion, fur­ther slipped in the pes­simistic zone. The same set of pa­ram­e­ters also pulled down the Fu­ture Ex­pec­ta­tions In­dex, which mea­sures the over­all sen­ti­ments about the eco­nomic sit­u­a­tion in the next six months, in Septem­ber 2017 com­pared to June 2017.

Re­duced home loan Rates

State Bank of In­dia, the coun­try’s largest bank by de­posits, re­duced home loan rates to 8.30% from 8.35% and other fi­nan­cial in­sti­tu­tions are ex­pected to fol­low suit. The re­duc­tion in home loan rates should give a much needed boost to the real es­tate res­i­den­tial prop­erty mar­ket which has been un­der some stress in the re­cent past.

Di­rect tax col­lec­tion in­crease

The pro­vi­sional fig­ures of di­rect tax col­lec­tions up to Septem­ber 2017 show that net col­lec­tions are at ` 3.86 lakh crore, which is 15.8% higher than the net col­lec­tions for the cor­re­spond­ing pe­riod of last year. Net Di­rect Tax col­lec­tions rep­re­sent 39.4% of the to­tal Bud­get Es­ti­mates of Di­rect Taxes for FY 2017–18 (`9.8 lakh crore). Gross col­lec­tions (be­fore ad­just­ing for re­funds) have in­creased by 10.3% to `4.66 lakh crore dur­ing April to Septem­ber 2017. Re­funds amount­ing to `79,660 crore have been is­sued dur­ing April toseptem­ber 2017.

in­fra­struc­ture boost

The Union Cabi­net ap­proved the Bharat­mala project, which isa­mong the largest high­way­con­struc­tion projects in the­coun­try, sec­ond only to the Na­tional High­ways Devel­op­ment Project (NHDP). The high­way work worth `8 lakh crore will­be­gin be­fore the end of 2018 un­der the Bharat­mala project. This am­bi­tious project of the Gov­ern­ment of In­dia is­ex­pected to be a ma­jor driver for eco­nomic growth. The pro­gramme has been de­signed to bridge the gaps in the ex­ist­ing high­way in­fra­struc­ture that would help in the fasterand more ef­fi­cient move­ment of men and ma­te­rial. The project is es­ti­mated to give the coun­try 50 na­tional cor­ri­dors as op­posed to six, in the present day. With this, 70–80% of freight will be trans­ported along ana­tional high­way, as against 40% at present. Fur­ther, this­pro­ject will also meet the con­nec­tiv­ity needs of the back­ward and tribal ar­eas, border ar­eas and

trade routes with neigh­bour­ing coun­tries. A to­tal of 24,800 kilo­me­tres are be­ing­con­sid­ered in phase-1 of Bharat­mala. In ad­di­tion, the first phase of Bharat­mala also in­cludes 10,000 kilo­me­tres of bal­ance road works un­der NHDP.


Cargo han­dled by ma­jor ports in the coun­try, in­creased by 3.24% be­tween April–septem­ber 2017, com­pared to the same pe­riod last year. The high­est growth was regis­tered by Cochin Port (19.62%) fol­lowed by Kolkata (in­clud­ing Hal­dia), New Man­ga­lore, Paradip with a growth of around 12%. Dur­ing the pe­riod April–septem­ber 2017, Kandla Port han­dled the high­est vol­ume of traf­fic (53.29 mil­lion tonnes) fol­lowed by Paradip (47.61 mil­lion tonnes), JNPT with 32.69

ur­ban cities growth

The Bharat­mala project, apart from in­creas­ing con­nec­tiv­ity within the coun­try, will also help de­con­gest ma­jor ur­ban cen­tres. Un­der the project, 28 new ring roads and 45by­passes have been planned. This move will help un­clog traf­fic across ma­jor cities in the coun­try. Ring roads have been planned in Bengaluru, Pune, Sam­balpur, Madu­rai,indore, Dhule, Raipur, Shivpuri, Delhi, Bhubaneswar, Gu­ru­gram, Surat, Patna, Lucknow, Varanasi, Vi­jayawada, Chi­tradurga, Am­ra­vati (AP), Sa­gar, So­la­pur, Jaipur, Bel­gaum, Nag­pur, Agra, Kota, Dhanbad, Ranchi and Udaipur. Un­der the ring road project, a new ring road has been planned to be con­structed in Delhi, which will start near Narela on the Na­tional High­way-1, pass through the Na­tional high­way-10 near Ro­hini and end at NH-2. Go­ing for­ward, trav­el­ling will be much eas­ier in Delhi NCR. Metro ser­vices have com­pletely trans­formed the man­ner in which peo­ple travel within Delhi NCR. The Ma­genta Line, which is cur­rently un­der trial, will bring the travel time be­tween Noida and South Delhi to 16 min­utes from more than one hour presently. There are also plans to ex­pandthe rapid metro ser­vices in Gu­ru­gram. As per a new pro­posal, un­der phase 3 of the Rapid Metro ser­vice, con­nec­tiv­ity willbe pro­vided from Sikan­der­pur metro sta­tion to Gu­ru­gram rail­way sta­tion.

global economies snap­shot

The Bank of Eng­land raised its key in­ter­est rate by a quar­ter per­cent­age point to 0.5%. It is the first hike in 10 years. The move comes at a time when in­fla­tion sits at 3% and eco­nomic growth has slowed. There re­main con­sid­er­able risks to the out­look, given the process of EU with­drawal. The U.S. econ­omy grew at 3% be­tween July–septem­ber 2017. In fact, for the first time in three years, the US econ­omy has en­joyed back-to-back quar­ters of 3% growth. Growth be­tween April–june 2017 was 3.1%. Ac­cord­ing to the In­ter­na­tional Mon­e­tary Fund (IMF) bi-an­nual re­port, eco­nomic growth among coun­tries in sub-sa­ha­ran Africa is ex­pected to re­bound this year from their 20-year lows in 2016. IMF said that growth is ex­pected to al­most dou­ble this year to 2.6%, and to reach 3.4% in 2018. But de­spite the re­cov­ery, the pub­lic debt is ris­ing and soon could be­come un­sus­tain­able in some African coun­tries. As per The World Bank, oil prices are fore­cast to rise to $56 a bar­rel in 2018 from $53 this year, due to the steadily grow­ing de­mand, agreed pro­duc­tion cuts among oil ex­porters and sta­bil­is­ing U.S. shale oil pro­duc­tion, while the surge in me­tals prices is ex­pected to level off next year. The prices for en­ergy com­modi­ties that in­clude oil, nat­u­ral gas and coal—are fore­cast to climb 4% in 2018. The me­tals in­dex is ex­pected to sta­bilise in the com­ing year, after a 22% jump this year, as a cor­rec­tion in iron ore prices is off­set by in­creased prices in other base me­tals.

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