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India loses fastest growing economy rank; IMF slashes 2017 growth rate by 0.5 % to 6.7%
By Arul Louis
United Nations, Oct 10 (IANS) India has lost its rank as the world’s fastest growing major economy in the International Monetary Fund’s tally after it slashed India’s growth projection for 2017 by 0.5 percent to 6.7 percent on Tuesday.
China edged slightly ahead to be the growth champion with a projected growth rate of 6.8 percent, according to the latest World Economic Outlook report.
But according to the report, it is only a temporary setback for India, and it projected India to regain the top spot next year with a 7.4 percent growth rate for the gross domestic product (GDP) even though that estimate was also down from the 7.7 percent made in July.
IMF’s 6.7 percent growth rate projection is at the low end of the spectrum of estimates made by it and four other international organisations with the UN Department of Economic and Social Affairs (UNDESA) putting it at 7.3 percent.
The IMF’s previous projections for 2017 made in April and July had put India’s economic growth rate at 7.2 percent.
Explaining the cut, the report said that India’s growth momentum slowed because of “the lingering impact” of last year’s demonetisation “as well as uncertainty related to the midyear introduction of the country-wide Goods and Services Tax (GST).”
Although the report blamed the GST as a factor in lowering the growth projection for this year, the IMF said that it “is among several key structural reforms under implementation that are expected to help push growth above 8 percent in the medium term”.
Globally, the economic picture has brightened a bit with the world growth for this year projected at 3.6 percent, up from last year’s 3.2 percent. For next year it was projected at 3.7 percent, according to the report
Releasing the report in Washington, IMF Research Director Maurice Obstfeld said: “The global recovery is continuing, and at a faster pace. The picture is very different from early last year, when the world economy faced faltering growth and financial market turbulence. We see an accelerating cyclical upswing boosting Europe, China, Japan, and the United States, as well as emerging Asia.”
On the plus side for India, the IMF raised last year’s growth rate by 0.3 percent to 7.1 percent from the 6.8 percent it had projected in April citing “strong government spending and data revisions”.
It also raised the growth rate for 2014 and 2015 by 0.2 percent from the 7.3 percent estimated earlier to 7.5 percent.
The IMF recommended that “simplifying and easing labor market regulations and land acquisition procedures” would help India improve the business climate.
Another recommendation was to facilitate more women to join the labour force because “gender gaps in labour force participation not only hold back potential output but also limit women’s economic and social opportunities, harming inclusiveness”.
There is a wide range in the projections by different agencies, ranging from the 7.3 percent for this year and 7.9 percent for the next year made by the UNDESA in May to Asian Development Bank’s projection last month of 7 percent for this year and 7.4 for next year.
Another UN agency, the Economic and Social Council for Asia and the Pacific (ESCAP), also in May, expected this year’s growth rate to be 7.1 percent before raising to 7.5 percent next year.
The World Bank’s growth projection made in June was 7.2 percent for this year and 7.5 percent next year.
(Arul Louis can be reached at [email protected])
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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