India's GDP growth figure for July-September could be below 5%. To attract manufacturers and capitalise on US-China trade war, India mulling incentives.
The Worst is Yet to Come: India's quarterly economic growth of 5% in the April-June quarter dejected and depressed one and all. But GDP growth could get slower still. Economic analysts, renowned for disagreeing on virtually everything, have reached a consensus on one topic - that India's GDP numbers for the current quarter could dive below 5%.
Economists at State Bank of India, Nomura Holdings Inc. and Capital Economics Ltd. lowered their growth forecasts for the quarter ended September to between 4.2% to 4.7%.
A 4.2% growth rate would be slowest since authorities adopted a new base year in 2012. It would also mean that measures currently being employed to boost sagging growth - like cutting corporate taxes and the RBI slashing repo rates - have not managed to reverse the slowdown.
The government is scheduled to publish the quarterly GDP data on November 29. ET Indicators
The Art of Blinking Slowly: In a bid to capitalise on the US-China trade war, India is reportedly planning to offer 324 companies incentives to set up factories in the country. The companies include Tesla and GlaxoSmithKline. Possible incentives include providing manufacturers land, power, water and road access.
The trade war has prompted manufacturing giants to rethink relying on China as a manufacturing hub as relations between Beijing and Washington sour - and China's economy slows down and ages. Instead, companies are searching for new shores, which has greatly benefited countries like Vietnam and Malaysia. India, meanwhile, is yet to capitalise on the situation. ET Foreign Trade
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