Washington: India's growth slowed due to demonetisation, GST: Donald Trump administration


Washington, Feb 22 (PTI): America's bilateral trade deficit with four major countries, including India, narrowed in the first three quarters of 2017 as compared to the previous year, the US administration said in a report according to which India's growth has slowed due to the effects of its structural economic reforms.

The Economic Report of the President (ERP) that shows a path for continued growth and paints a rosy picture for the American economy, alleges that countries, including India and Brazil - both GATT signatories since 1948 - have been far less open, preserving high bound rates and avoiding universal binding coverage.

"Growth in India has slowed due to the effects of its structural economic reforms. India's demonetisation of large-denomination notes in November 2016 invalidated 86 per cent of the cash in circulation in an economy where more than 90 per cent of transactions were cash-based," it said.

"The introduction in July 2017 of a single, country-wide sales tax replaced a vast number of different state and local tax rates, and has created short-term uncertainty," the report noted.

The report expressed concern over increasing share of non-performing loans (NPLs) in India's banking sector, which it said poses further risks.

According to country-sourced statistics provided to the IMF, NPLs as a share of all loans (i.E. NPL slippage ratio) in India stood at 9.7 per cent in the third quarter of 2017, compared with 1.7 per cent in China (IMF 2017).

"NPLs have increased at an alarming rate in recent years, with the current NPL slippage ratio in India almost double that in FY 2014/15 (IMF 2017b). Public sector banks, with the State Bank of India as a leading example, account for the lion's share of NPLs in the banking sector," it said.

The Reserve Bank of India predicts that gross NPLs as a proportion of all loans will increase to 10.8 per cent in the first quarter of 2018, and to 11. 1 per cent by September 2018.

"However, the stress of India's banking sector may be ameliorated in the future, given that the government recently announced a USD 32.4 billion package to recapitalise publicly- owned banks," the report said.

Noting that India has been the most frequent user of anti-dumping measures, the White House said delays in the approval of agricultural products derived from biotechnology in China, the EU, India, and other countries result in increased market uncertainty among technology providers, farmers, and traders of US corn, soy, cotton, and alfalfa—leading to reduced exports of these products.

The Trump administration also blamed India for not implementing the WTO ruling on poultry.

"India has failed to revise its requirements for poultry in a manner that would allow for US imports, and the case continues to be litigated in the WTO," it said.

"Since 2007, India has restricted various US agricultural products, including poultry meat, eggs, and live pigs, supposedly to prevent the entry of avian influenza into India," the report said.

The US has maintained that no scientific basis supports the ban.

In March 2012, the US initiated a WTO dispute by requesting consultations with India.

In emerging and developing economies, such as Brazil, China, India, Russia, and certain other countries in Africa, Asia, and Latin America, strengthening the external environment continues to help output growth recover.

"There are, however, certain risks to future growth. As monetary policy normalises with higher interest rates in advanced economies, emerging and developing economies could face an outflow of capital," it said.

"Financial stability risks are also increasing due to the increase in nonperforming loans on the private sector balance sheets of two of the biggest and fastest-growing emerging market economies - China and India. Credit growth in China has arguably also become excessive, as it continues to shift from growth led by exports and investment to an economy led by internal demand," it said.

  

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Comment on this article

  • dominic-dsouza-Rudy, mudarangady mauritius

    Thu, Feb 22 2018

    only congress govt can make india's growth high

    DisAgree Agree [6] Reply Report Abuse

  • Orton Cordeira, Mangalore

    Thu, Feb 22 2018

    Finally Trump came to know what Jumlebazi Bhashans he did in America.
    That too he realized after Rahul Gandhi's Visit.

    DisAgree Agree [4] Reply Report Abuse

  • ABC, Mangaluru

    Thu, Feb 22 2018

    This time Trump 100% correct. Ye Modi ne aam admi aur sab business man ki "Whaatt lagadi" I myself one of them. From top to bottom level business turn over went down almost for about 60-70% ever since demonitization implemented. Please please do not vote BJP this time. I am not favoring any political party but an Indian parspective and its interest.

    DisAgree Agree [5] Reply Report Abuse

  • Evans Christopher Sumitra, Udupi/ New York, USA.

    Thu, Feb 22 2018

    This demonetization by Modi's government is the most disastrous decision which has put many people, the rich and poor on the roads to poverty.

    DisAgree Agree [15] Reply Report Abuse

  • Navin, Kundapur

    Thu, Feb 22 2018

    Truly Mr. Mohan, better Modi knows this conclusion, final option what Hitler did at the end…..

    DisAgree [4] Agree [26] Reply Report Abuse

  • Declan, Mumbai

    Thu, Feb 22 2018

    Conclusion we know and do not care about but before in the years before conclusion happened how much untold misery and death of innocents happened. That is the worry.

    DisAgree [2] Agree [5] Reply Report Abuse

  • A. S. Mathew, U.S.

    Thu, Feb 22 2018

    Modi's economic blunders will be showing the real signs in 2018, pushing the nation into serious economic slow down-unemployment and many other related economic troubles.

    The bad loans of the Indian banks is 9.7% in the 3rd quarter of 2017 according to the International Monetary Fund, but that of China is only 1.7%. The Indian Banking sector will be showing structural damage due to this the outstanding debt in big volume.

    DisAgree Agree [3] Reply Report Abuse

  • Flavian, Manaluru/Kuwait

    Thu, Feb 22 2018

    @ Dinesh, Dubai
    Truth will always prevail whereas, manipulations tends to be short living.
    BJP's agenda was expanding their rule and not providing better life to the common man. I am worried about my hard earned savings (deposits back in India)

    DisAgree [4] Agree [40] Reply Report Abuse

  • Declan, Mumbai

    Thu, Feb 22 2018

    So are we Flavian, so are we worried.

    DisAgree [1] Agree [21] Reply Report Abuse

  • geoffrey, hat hill

    Thu, Feb 22 2018

    By 2019 don't be surprised to see a economic mess similar to that of 1991 created and handed over by Chadrashekar/Sinha to Narasimha Rao/MMS with 50 Tons of our national gold reserve mortgaged in Bank of England and Japan. BJP has a history of messing up economy.

    DisAgree Agree [5] Reply Report Abuse

  • Ivar, Mangalore

    Thu, Feb 22 2018

    Flavian and Declan,
    Do not worry.
    Why do you think we are using paper bags in place of very comfortable and cheap plastic ones? Why are we bothered about global warming? Why do we have to be so concerned about future generation?
    Because, we all want our children and grandchildren to have better life.
    Demonetization and GST might cause some uncomfortableness to people for a short time, but for sure, in long term it is a boon. Some one daring enough should have taken these steps long ago, but everyone at the helm were concerned about votes. Modi did it. Let us appreciate. Let our next generation have a corruption -free developed India.

    DisAgree [7] Agree Reply Report Abuse

  • Declan, Mumbai

    Fri, Feb 23 2018

    We understand that there is no gain without pain but with Modi government it is not just pain it is blunder over blunder and total disaster which is further covered with multiple lies. Modi bhakts should wake up and not try brainwashing the educated with Sanghi thinking. It just won't happen.

    DisAgree Agree [4] Reply Report Abuse

  • Declan, Mumbai

    Thu, Feb 22 2018

    Demonetization was the most disastrous and idiotic decision taken by the Modi government. Still PM Modi is desperately trying to defend DeMo by raising his voice louder and louder (like shouting) and swinging his arms more wildly in his recent speeches (especially the one in Parliament).

    DisAgree [5] Agree [54] Reply Report Abuse

  • kp, udupi

    Thu, Feb 22 2018

    may be true that because of demonetisation,GST indias growth became slow that is what trump admin said. He never said it is wrong decision.So for the future india the decision was bold and correct.

    DisAgree [6] Agree Reply Report Abuse

  • Ratnakar P.S, Mangalore, Bangalore

    Thu, Feb 22 2018

    Shethh. Idee boolokade nachike malth budiyerappa.

    DisAgree [2] Agree [41] Reply Report Abuse

  • Shamsuddin, Moodbidri

    Thu, Feb 22 2018

    Aandh, yaanla panpuni ave, gotthijandina bele dayeg

    DisAgree [2] Agree [36] Reply Report Abuse

  • Cyril, Mangalore

    Thu, Feb 22 2018

    The reality of hugging too much comes from Trump..
    Effect of 10 %

    DisAgree [1] Agree [40] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Thu, Feb 22 2018

    So far the public went by the name Modi, Namo, RSS, Hindutva.....
    So please ensure that only the name would not benefit the country and the people of India.
    Ensure that tje PM is at least well qualified and experienced in over all areas and guided by experienced team to take and implement right decisions and not the decisions taken by one man show. It's a team work and not simply winning people’s (un educated) heart & their support.
    Down fall comes when decisions are implemented by josh and not based on field work and thorough steady. (Good home work is a must)

    DisAgree [1] Agree [38] Reply Report Abuse

  • khursheed, abu dhabi

    Thu, Feb 22 2018

    Bhaiyo aur Beheno.............. Yeh Trump jhoot bol raha hai.......

    DisAgree [2] Agree [54] Reply Report Abuse

  • Robin, Byndoor

    Thu, Feb 22 2018

    TRUMP has many Headaches to solve. He himself is a headache to Americans.... He suggested all the teachers to possess guns in schools.. How India's Growth a headache for him ? Is he worried about Positive Growth or Negative Growth ?

    DisAgree [42] Agree [4] Reply Report Abuse

  • Rajendra, Mangalore, Mumbai

    Thu, Feb 22 2018

    Robinhood, Americans headache they will take treatment in America. What about your headache, after GST medicine cost also increased.

    DisAgree [3] Agree [44] Reply Report Abuse

  • kas, Mangalore

    Thu, Feb 22 2018

    Robinhood is clueless .....

    DisAgree Agree [2] Reply Report Abuse

  • Af,,, Mangalore

    Thu, Feb 22 2018

    This is difference between Harvard university educated and cow university educated.

    DisAgree [3] Agree [48] Reply Report Abuse

  • Mohan, Kudla kori

    Thu, Feb 22 2018

    Disaster decision by modi. Still he defends. 2019 lok sabah a election show.. Feku nd daaku,, to jungle. Total failure pm.

    DisAgree [1] Agree [58] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Thu, Feb 22 2018

    Republic TV news anchor Arnab has finally woken up to blame the ruling government on such matters and now claims to have unearthed so many secrets about Nirav Modi's where about and legal implications binding to catch the culprit and punish him. He also claims that BJP heads have not done enough (including PM)
    He demands to get the looted money back in our tresury or banking system.
    1.3 Billion people want to know what is the course of action our leaders have taken to convince the public ???????
    In spite of all such blunders, some blind supporters carry Modi's name and enrich among the masses.

    DisAgree Agree [60] Reply Report Abuse

  • Dinesh, Dubai

    Thu, Feb 22 2018

    Well said Flavian, but Feku's paid media partner Times Now is still in sleep and dreaming Acche Din. They are still trying to find faults of congress in Nirav Modi's scam

    DisAgree Agree [38] Reply Report Abuse

  • Rathan, Mangalore

    Thu, Feb 22 2018

    When Trump blamed particular religion for the terror activities throughout the world same people said Trump is sick minded and not fit to be the President etc etc
    Now all of a sudden his statements become holy for same people.strange thinking
    That clearly shows their hatred towards our own democratically elected PM

    DisAgree [69] Agree [6] Reply Report Abuse

  • kas, Mangalore

    Thu, Feb 22 2018

    Better not to show your communal approach always .... Think of India...

    DisAgree [1] Agree [55] Reply Report Abuse

  • Mohan, Kudla kori

    Thu, Feb 22 2018

    Mr. Rathan
    Pm modi is behaves like Hitler. He like only foreign sheikh Muslims. Hates Indian Muslim. Truly trump dint take Suicidal demonitisation decision. Trump is business man. But modi business man's GUJJU PM. NOT Indian pm

    DisAgree Agree [39] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Thu, Feb 22 2018

    India’s deteriorating conditions

    DisAgree [2] Agree [52] Reply Report Abuse

  • Vivek, Hirebyle / Abu dhabi

    Thu, Feb 22 2018

    Certainly DEMO & G.S.T is big blow for Indian Economy .....but what pains is ...even during Demonetizing they didn't able to Catch SHARKS Like ......Nirav Modi..... Kothari .....is Proving that Demonetization Taken In a Political Spirit (STUPID BRAIN) and not in True Understanding .......INSTEAD....if our P.M Would have taken In feed from any Economist / Financial Expert / Banker ......they would have definitely reviled LOOPS in Banking system / Corrupt Practices .....which could have CORRECTED and never need of any DEMONETIZATION or BLACK MONEY Hunt...... in a Lighter note ...lene se jyaada dene padgaye ....(.Every VOTER......Expected 15 Lakhs from this government ..but lost more than that due to this SCAM.)...

    DisAgree [1] Agree [50] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Thu, Feb 22 2018

    Modi is more concerned about State elections rather than in India's decorating economic conditions and other financial scams. Bad or default loans or financial misappropriations of funds, nothing of the sorts have bothered him so far. Not even a word of assurance about on such bad events ! Who can convince his team?

    DisAgree [5] Agree [60] Reply Report Abuse

  • D.Shetty, Mangalore

    Thu, Feb 22 2018

    yes, it would be since all money is accounted and system is getting into place.. better for future and not easy to take such decisions and implementation.. need 56' inch chest to take such tough decision for sake of country

    DisAgree [73] Agree [6] Reply Report Abuse

  • kas, Mangalore

    Thu, Feb 22 2018

    tough decision for sake of country -------or MMM family

    DisAgree [2] Agree [45] Reply Report Abuse

  • MrIsmail, mangalore

    Thu, Feb 22 2018

    adhar bhi link karo phir bhi loot liya bank ko!!!

    DisAgree [2] Agree [48] Reply Report Abuse

  • geoffrey, hat hill

    Thu, Feb 22 2018

    Tuglak also had taken such tough decisions in the past and in the modern times countries like Nigeria, Ghana, Pakistan, North Korea, Myanmar, Zimbabwe had tried Demonetization and turned out to be disasterous. Wise people learn from others mistakes but the dumb don't bother to learn and repeat the same blunders.

    DisAgree [1] Agree [40] Reply Report Abuse

  • mohan sr., Mangalore

    Thu, Feb 22 2018

    World knows the effect of demonetisation ..... ....

    DisAgree [1] Agree [72] Reply Report Abuse

  • Gangaram, Moodbidri

    Thu, Feb 22 2018

    No more hugging facility to Trump from Modi :) :) :)

    US says now after 15 months of Demo, wheras Dr. MMS told within one week from the demo

    DisAgree [2] Agree [75] Reply Report Abuse

  • A. S. Mathew, U.S.

    Thu, Feb 22 2018

    Now India is faced with a national tragedy under this administration; and it has to be completely eradicated for a better India tomorrow.

    DisAgree Agree [11] Reply Report Abuse


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Title: Washington: India's growth slowed due to demonetisation, GST: Donald Trump administration



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