Connect with us

Asia Pacific

IMF Confirms India as the World’s Fastest Growing Economy

Published

on

Is India the World’s Fastest Growing Economy? The International Monetary Fund (IMF) has predicted an impressive growth for the Indian Economy in the financial year 2019 and Confirmed India’s Status as World’s Fastest Growing Economy (major economies)

The apex body said that India is expected to record a growth of 7.4 percent in FY 19 as compared to the 6.7 percent in FY 18. Furthermore, the Indian economy will continue to grow to 7.8 percent in FY 20. The IMF further added that the year 2017 recorded the highest growth for the world economy in the past seven years. The announcements came on the eve of PM Narendra Modi’s address at the World Economic Forum in Davos on Tuesday.

India the World’s Fastest Growing Economy, While Chinese Economy To Slip by 0.2% YoY In FY20: IMF

The IMF had previously predicted in October last year that the world economy would grow at a rate of 3.7 percent which they have now updated to a growth of 3.9 percent. The global apex economic body said that over 120 countries of the world recorded an impressive growth in 2017. For China, the IMF said it would grow to 6.8 percent only to slip down to 6.6 percent the following year. The United States, on the other hand, is likely to grow 2.7 percent and 2.5 percent in 2018 and 2019 respectively.

The Indian economy which is likely to record a 7 percent growth in the second half of the current fiscal year, has seen an 8.4 percent rise in November in terms of industrial production. Sale of passenger vehicles, on the other hand, grew 5.2 percent to 239,712 units as compared to the previous year. Similarly, the sale of commercial vehicles rose to 82,362 units (52.6 percent) while the sale of two-wheeler increased 41.5 percent to 1.29 million units. The stock markets in the Indian economy also have been hitting impressive highs over the last few weeks.

Leaders To Remain Mindful That Growth Momentum Not Permanent: IMF Official

Impressive tax collections in the Jan-Mar quarter has also led to the government to reduce the borrowings planned before. The IMF said the growth forecast for the world economy has been increased to 3.9 percent which further indicates the impact of changes in US tax policy. The IMF DoR Maurice Obstfeld, however, said that the world political leaders must keep in mind that the momentum of present economic changes is a result of factors that may not last for a long time.

Other News:

Advertisement

Americas

China Imposes Sanctions On US Defence Giant Behind F-16s, F-22 Raptors

Published

on

China has threatened to impose sanctions on US defence giant Lockheed Martin – the makers of Stealth F-22 Raptors, in response to US approving of a possible deal for Taiwan to buy parts to refurbish defensive missiles built by the company.

With China In Mind, India To ‘Urgently’ Acquire Heron Drones, Spike ATGM From Israel

Foreign Ministry spokesman Zhao Lijian made announced at a briefing in Beijing on Tuesday, adding that the US should cut defence ties with Taiwan “so that it doesn’t do further harm to bilateral relations and damage peace and stability in the Taiwan Strait.”

“China firmly opposes U.S. arms sales to Taiwan,” Zhao said, adding: “China decides to take measures to protect national interests. We will impose sanctions on the main contractor of this arms sale Lockheed Martin.”

Rafale jets dodge all radars, air defence systems; bombs Turkish facilities in Libya

The US State Department last week approved a possible $620 million foreign military deal for Taiwan to buy parts of Patriot Advanced Capability-3 (PAC-3) missiles so that they can last 30 years.

Beijing’s actions come amid growing tensions between the US and China tensions over various issues including trade war, South China Sea dispute, COVID-19 pandemic, new security law in Hong Kong, 5G network and hostilities against key US allies including India and Australia.

Stealth vs Thrust: Why Indian Air Force needs American jets instead of Russian aircraft?

Despite it being a strategic American ally, the US has no official embassy in Taiwan nor does Australia, Canada, the UK or Germany. China calls Taiwan a ‘renegade province’ and has vowed it to merge it with mainland China, at all costs.

Continue Reading

Asia Pacific

India-China Economic Romance Cannot End With A Mere Border Clash – Chinese Experts

Published

on

India and China have been at each other’s throat for more than a month now. Aside from the military confrontation in Ladakh, India has also moved to disengage from China economically.

While the move has got the support from the majority of Indians, Cui Hui’ao of the China Global Television Network (CGTN) writes that disengaging from China might not be a choice for India and that economic de-coupling is driven politically by Narendra Modi.

As reported by Eurasian Times consistently during last month, the feud between India and China has been a rollercoaster ride. From military buildup, deadly clashes to de-escalation and eventual withdrawal, the clash of the two Asiatic giants has seen it all.

Cui writes that apart from the military confrontation, India has retaliated in the economic sphere, referring to the decision by the Indian government to ban 59 Chinese application including TikTok, WeChat and ShareIt and the call to boycott Chinese products.

The journalist at CGTN writes that decoupling from China may be easier said than done for India. He says that India is not a manufacturing powerhouse, so in terms of bilateral trade, it actually buys much more from China than the other way around.

Cui analyses trade data to support the fact that New Delhi will find it difficult to reduce its dependence on Chinese imports. Between April 2019 and March 2020, India imported over 65 billion U.S. dollars’ worth of goods from China.

Cui is of the opinion that the coronavirus pandemic has hit the Indian economy hard and in fact, the disengagement is driven by politics rather than economics. He finds it difficult to accept that India’s disengagement from China would take place at a time when the Indian economy is projected to contract by 4.5% according to the International Monetary Fund (IMF).

Economic Disengagement Driven Politically 

Speaking to Cui, Cheng Xizhong, a visiting professor from Southwest University of Political Science and Law, says that the decision to de-couple from China economically is because of the domestic pressure on Prime Minister (PM) Narendra Modi.

‘’Since his second term began yet Indian economy is a mess. He has to find a way to shift the public attention elsewhere,” he said.

The author agrees with the point made by Cheng Xizhong and writes that pressure on the Indian PM Modi comes from multiple fronts, including his own supporters, businesses, and farmers union. But this time, the nationalistic voice is even louder.

Other experts interviewed by Chui agree that New Delhi would benefit more if it partnered with Beijing. Professor Cheng, a former Chinese military diplomat in South Asia, said that since India started its opening-up in the 1990s, its economic growth has been crippled by lack of high-quality infrastructure and it would wiser if India and China work together.

Similar views are shared by Indian economist Biswajit Dhar, who says that India’s decision to start producing domestically has to be strategic and it cannot take the decision to produce everything.”

While India and China disengage at the battlefront in Ladakh, the Indian government is looking for solutions to reduce its dependency on Chinese imports. PM Modi has encouraged all Indians to become self-reliant (Aatmanirbhar) by producing and purchasing indigenous goods and boost the Indian economy.

Continue Reading

Americas

US-China ties to worsen as Trump set to block all Chinese claims in South China Sea

Ties between US and China could dramatically worsen over the South China Sea after Secretary of State Mike Pompeo said Washington now regards virtually all Chinese maritime claims outside its internationally recognised waters to be illegitimate. 

Published

on

Ties between the US and China are set to further deteriorate over the South China Sea as the Trump administration is set to outrightly reject almost all of Chinese maritime claims in the contentious waterbody.

US exasperated over Iran-China $400 billion pact

The Trump government presented the decision as an endeavour to restrain China’s increasing belligerence in the region with a commitment to recognising international law. This move in the South China Sea will further enrage the Chinese, who are already countering against various US sanctions and other penalties.

Previously, US policy had been to insist that maritime spats between China and its smaller neighbours be settled peacefully through UN-backed arbitration.

But in a statement released on Monday, Secretary of State Mike Pompeo said Washington now regards virtually all Chinese maritime claims outside its internationally recognised waters to be illegitimate.

“The world will not allow Beijing to treat the South China Sea as its maritime empire,” Pompeo said. “America stands with our Southeast Asian allies and partners in protecting their sovereign rights to offshore resources, consistent with their rights and obligations under international law. We stand with the international community in defence of freedom of the seas and respect for sovereignty and reject any push to impose ‘might makes right’ in the South China Sea or the wider region.”

Image

Although the US will continue to remain impartial in territorial conflicts, the announcement means Washington is now directly supporting Brunei, Indonesia, Malaysia, the Philippines and Vietnam, all of which oppose Chinese declarations of sovereignty over maritime areas surrounding disputed islands, reefs and shoals.

“There are clear cases where [China] is claiming sovereignty over areas that no country can lawfully claim,” the State Department said in a fact sheet that accompanied the statement.

The announcement was released a day after the fourth anniversary of a binding decision by an arbitration panel in favour of the Philippines that discarded Chinese maritime claims around the Spratly Islands and neighbouring reefs and shoals.

China has declined to recognise that ruling, rejected it as a “sham” and withdrew from the arbitration proceedings. It has continued to oppose the decision with aggressive actions that have brought it into territorial disputes with Vietnam, the Philippines and Malaysia in recent years.

However, as a result, the administration said China has no valid maritime claims to the fish- and potentially energy-rich Scarborough Reef, Mischief Reef or Second Thomas Shoal. The US has repeatedly said areas regarded to be part of the Philippines are covered by a US-Philippines mutual defence treaty in the event of an attack on them.

In addition to reemphasising support for that decision, Pompeo said China cannot legitimately claim the James Shoal near Malaysia, waters surrounding the Vanguard Bank off Vietnam, the Luconia Shoals near Brunei and Natuna Besar off Indonesia. As such, Washington said it would regard any Chinese intimidation of fishing vessels or oil exploration in those areas as unlawful.

Continue Reading
Advertisement

Facebook

FEATURED

eurasian times eurasian times
Featured9 hours ago

US Troops Withdraw From Five Bases in Afghanistan As Part Of Peace Deal With Taliban – Officials

The US has withdrawn from five military bases in Afghanistan. Afghan media outlet Tolo reported the five U.S. bases that...

Pakistan-Turkey-Relations Pakistan-Turkey-Relations
Featured9 hours ago

Pakistan Affirms Full Support To Turkey On The Eve Of Defeated Coup In Ankara

Pakistan, he added, “stands by Turkey and has been taking all possible steps to support Turkey’s efforts to address the...

atgm-india atgm-india
Featured12 hours ago

With China In Mind, India To ‘Urgently’ Acquire Heron Drones, Spike ATGM From Israel

India plans to acquire for Heron drones and Spike anti-tank guided missiles (ATGM) from Israel under the emergency financial powers...

Turkey-EU Relations Turkey-EU Relations
Featured12 hours ago

EU’s Free Trade Agreement (FTA) with Vietnam Leaves India Fuming

EU’s Free Trade Agreement (FTA) with Vietnam has come as a big blow to India. India has started trade talks...

china-detention-camps china-detention-camps
Featured18 hours ago

Galwan Valley Clash: Has China denied burial permission to family of dead PLA soldiers?

The US intelligence report, as per Indian media, claims that China is not accepting that its soldiers have been killed...

nasa-comet-india nasa-comet-india
Americas21 hours ago

Comet Neowise in India: Rare Neowise Comet will be visible in North-West India from Today – NASA

NASA Comet Neowise India: NASA’s Neowise infrared space telescope discovered the comet on 27 March. Scientists involved in the mission...

India-Iran-Ties India-Iran-Ties
Featured22 hours ago

Iran-India Chabahar Port Deal: Iran Kicks-Out India from Chabahar Rail Project citing funding delays

Iran-India Chabahar Port Deal: The railway project was meant to be part of India’s vow to the trilateral deal between...

Mike-Pompeo Mike-Pompeo
Americas23 hours ago

US-China ties to worsen as Trump set to block all Chinese claims in South China Sea

Ties between US and China could dramatically worsen over the South China Sea after Secretary of State Mike Pompeo said...

Amarnath-Yatra Amarnath-Yatra
Featured1 day ago

Indian top court declines to restrict ‘Amarnath Yatra’ Hindu pilgrimage in Kashmir

Amid the surge in COVID-19 cases, the Indian Supreme court has declined to restrict Amarnath Yatra – the Hindu pilgrimage...

Hasan-Rouhani- Iran Hasan-Rouhani- Iran
Americas2 days ago

US exasperated over Iran-China $400 billion pact

China's 400 dollar deal is a breather for Iran's economy which is hard hit by Trump "maximum pressure" campaign against...

Advertisement

Trending