Log In


Company Name : QNB Group

Thursday, March 16, 2017 10:05AM IST (4:35AM GMT)


QNB Group: India Reforms to Support Growth After Demonetisation

QNB Group has published its India Economic Insight 2017 report. The report examines the impact of demonetisation and the government’s reform agenda on the Indian economy

Doha, Qatar

According to the report, it is expecting real GDP growth to accelerate to 7.4% in 2017/18 as spending rebounds from the shock of demonetisation; in 2018/19 and 2019/20 growth should fade slightly on fiscal consolidation. Successful implementation of important reforms should support investment growth—for example higher public capital spending and a new harmonised goods and services tax (GST) should increase inter-state trade and attract foreign capital.


This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170315005478/en/

Central Statistical Office (CSO), Haver Analytics and QNB Economics forecasts (Graphic: ME NewsWire)

Central Statistical Office (CSO), Haver Analytics and QNB Economics forecasts (Graphic: ME NewsWire)

Inflation is expected to accelerate to 5.2% in 2017/18 on rising food prices following an exceptionally good monsoon season the previous year and stronger energy prices. We expect inflation to then stabilise at 5.0% in 2018/19 and 2019/20, in line with slower growth in food and oil prices; inflation will remain between the RBI’s range of 4 +/- 2%. Fiscal consolidation is planned to continue with the deficit narrowing from an estimated 6.7% of GDP in 2016/17 to 5.8% in 2019/20.


Consolidation will be achieved mainly through current spending restraint, especially on wages and subsidies. Implementation of the GST will raise revenues by increasing the tax base and boosting inter-state trade. Credit growth is expected to reach 8.8% in 2017/18 and 2018/19 and pick up to 9.0% in 2019/20, as confidence improves with the demonetisation shock fading and bank balance sheets strengthen on a government USD10.4bn capital injection. Deposit growth should slow in 2017/18 to 9.1% and stabilise thereafter, as withdrawal limits imposed during demonetisation are relaxed.


Consequently, we expect the loan-to-deposit ratio to decline from an estimated 74.3% in 2016/17 to 73.9% by 2019/20.


Other recent QNB Economic Insight reports include China, India, Indonesia, Jordan, Kingdom of Saudi Arabia, Kuwait, Oman, Qatar, Singapore, the United Arab Emirates and Vietnam are available on the QNB Group website. QNB Group operates in more than 30 countries across 3 continents and its economic reports leverage its knowledge of these markets to provided added value for its clients and counterparties.


Disclaimer and Copyright Notice: QNB Group accepts no liability whatsoever for any direct or indirect losses arising from use of this report. Where an opinion is expressed, unless otherwise provided, it is that of the analyst or author only. Any investment decision should depend on the individual circumstances of the investor and be based on specifically engaged investment advice. The report is distributed on a complimentary basis. It may not be reproduced in whole or in part without permission from QNB Group.


*Source: ME NewsWire





Click here for Media Contact Details
CONTACTS : QNB GroupMaha Mubarak Ali, +974-44-975-704PR@qnb.com.qa

More News from QNB Group

24/07/2017 7:25PM

क्यूएनबी ग्रुप ने भारत में परिचालन शुरू किया

मध्य पूर्व और अफ्रीका के सबसे बड़े वित्तीय संस्थान क्यूएनबी ग्रुप (QNB Group) ने हाल में देश की आर्थिक राजधानी, मुंबई शहर में अपने परिचालनों की शुरुआत की है।   भारत में इस समूह के परिचालनों की ...

24/07/2017 9:30AM

QNB Group Commences Operations in India

QNB Group, the largest financial institution in the Middle East and Africa, has recently commenced operations in the city of Mumbai, the economic capital of the Republic of India.   The start of the ...

12/07/2017 6:10PM

QNB Group: Financial Results for the Six Months Ended 30 June 2017

QNB Group, the largest financial institution in the Middle East and Africa (MEA) region, announced its results for the six months ended 30 June 2017, which is the highest in the history of QNB Group.   This ...

Similar News

24/08/2017 10:00AM

Admiral Technologies Recognized as One of the Great Mid-Size Workplaces to Work for in India, 2017

Great Place To Work® Institute has selected Admiral Technologies as one of India's Great Mid-Size Workplaces for 2017. The study was conducted by Great Place To Work® Institute, in association with MINT, by HT Media and ...

No Image

23/08/2017 5:30PM

WNS (Holdings) Limited Announces Details of Annual General Meeting of Shareholders

WNS (Holdings) Limited announces details of annual general meeting of shareholders.