Business Maverick: Where’s the Modi Miracle?

India’s Prime Minister Narendra Modi claim that India had become the world’s “fastest-growing large economy” was never much of an achievement; after all, the People’s Republic of China was in the midst of a significant slowdown even before the trade war. But even that no longer seems to be true. According topublished recently by government statisticians, India grew at only 5.8% in the fourth quarter of its 2018-19 financial year, less than China’s 6.4% growth in that same period.

This is the third successive quarter of slowing growth — from 8% between April and June of 2018, to 7% between July and September and then 6.6% in the third quarter, October to December. It’s hard to see this as anything other than a straightforward slowdown, of the sort that has been predicted now for some time. Yes, many questions are constantly asked about India’s growth figures. Even if you’re not convinced by the numbers, though, the trajectory is unmistakable.

Now, multiple indicators have begun to show a bit of a crisis in consumer spending as well. Passenger vehicle sales,, fell by 17.1% in April, the worst slide since October 2011. Large consumer goods companies are issuing warnings to investors about slowing demand. This could easily have been foretold: No economy can keep growing just on the basis of consumer demand.

India, meanwhile, has a new finance minister: Nirmala Sitharaman, who shifts across the road from the defense ministry. Sitharaman, who was an effective spokesperson for the party in its years in opposition, has had a less-stellar performance in government. As minister of commerce, she presided over years of anemic Indian exports and struck observers as being insufficiently sold on the benefits, or even the importance, of openness to trade.

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

BUSINESS MAVERICK: Is the monetary policy genie out of the bottle?The ANC, newly invigorated after the elections, has put altering the mandate of the South African Reserve Bank at the centre of its developmental agenda and has touted exploring quantitative easing as a solution to SA’s many woes.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Fiat Chrysler withdraws merger offer for Renault, blames French politicsFiat Chrysler said it has abandoned its $35 billion merger offer for Renault, blaming French politics for scuttling what would have been a landmark deal to create the world's third-biggest automaker. Just gotta love that French arrogance !
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Lagarde Says Trade Risks Becoming Reality as Global Growth SlowsFears that rising trade tensions might undermine global growth are becoming a reality, contributing to a widespread slowdown in the world economy, according to International Monetary Fund Managing Director Christine Lagarde.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Thursday, June 6: Five Things You Need to Know to Start Your DayBoeing is in talks for a megadeal that the trade war could derail. Asia equity futures are mixed after a U.S. stock advance. And the Trump administration readies a $2 billion Taiwan arms package. Here are some of the things people in markets are talking about today.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK/NEWS ANALYSIS: Gloves come off between SAA CEO and his boardThe relationship between the CEO of SAA, Vuyani Jarana and the board of the beleaguered airline appears to have irretrievably broken down, with the board investigating the CEO for a breach of confidence and he, in turn, threatening legal action. With the airline in a precarious position, this is probably not ideal. SAA still captured it seems
Source: dailymaverick - 🏆 3. / 84 Read more »