Economy
Good Q1 GDP expected due to normal monsoon, salary hikes
India's national income figures for the first quarter of the current fiscal 2016-17 are due for release on Wednesday, against the backdrop of expectations aroused by a normal monsoon and the recent pay hikes for central government employees.
 
The government expects Gross Domestic Product (GDP) growth to pick up to eight per cent in 2016-17, from 7.6 per cent in 2015-16.
 
"A number of structural reforms have been undertaken by the government over the last two years. The impact of all this is beginning to be felt now. We are hoping to better our growth from last year and get closer to eight per cent," Economic Affairs Secretary Shaktikanta Das told reporters here on Saturday.
 
"Also, this year monsoon has been good. Agriculture production is expected to be better than previous two years which will contribute significantly to GDP," he added.
 
Financial services firm DBS said in a research note that on gross value added basis, India's growth is expected to have stabilized at 7.4 per cent in the June quarter, which is slightly higher than the 7.2 per cent in the same quarter a year ago.
 
"For the year we look for growth to average 7.8 per cent this year, from FY15/16's 7.2 percent," it said.
 
Multilateral agencies like the International Monetary Fund (7.4 per cent) and the Asian Development Bank (7.4 per cent) have estimated that the Indian economy is likely to slow down from last year's level.
 
However, American agencies like Fitch Ratings and investment banker Goldman Sachs have projected the economy to marginally accelerate in the current fiscal.
 
In fact, the Indian government on Thursday lauded Goldman Sachs for awarding a growth forecast of 7.9 per cent for the Indian economy in the current fiscal, riding on an improved monsoon, key reforms and increased FDI inflows.
 
"Happy that Goldman Sachs forecast Indian economy to clock 7.9 per cent growth in current fiscal with better monsoon, key reforms and FDI (foreign direct investment) inflows," M. Venkaiah Naidu, Union Minister of Urban Development, Housing and Urban Poverty Alleviation, said in a tweet.
 
"Goldman Sachs lauded several important policy changes and reforms that were carried out like GST (Goods and Services Tax) bill passage, bankruptcy code, government approval of inflation targeting framework and measures to ease doing business," he said.
 
A pick-up in infrastructure investment and easing in foreign direct investment (FDI) restrictions in the defence, aviation, retail and e-commerce sectors was also hailed by Goldman Sachs, he added.
 
Moody's Investors Service in August had forecast the real GDP growth for India at around 7.5 per cent for FY2017.
 
In the fourth quarter of 2015-16 ending March, India's economy accelerated to grow at 7.9 per cent, buoyed by improved agricultural performance and growth in consumption.
 
Private consumption growth remained robust at 7.4 per cent in 2015-16, though it was marginally revised downward from the 7.6 per cent estimated earlier.
 
Central Statistics Office (CSO) data showed India's economy grew at 7.6 per cent in 2015-16, making the country the fastest growing major economy for the second consecutive year despite two failed monsoons.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Pay for maintenance of equipment at society building, SC tells Adarsh Society
The Supreme Court on Monday asked the Adarsh Co-operative Housing Society (ACHS) to pay if it wanted maintenance of the equipment installed at the 28-storeyed controversial building in Mumbai that is now in the directorate of military estates' custody.
 
A bench of Justice J Chelameswar and Justice Abhay Manohar Sapre said this as senior counsel Chandra Uday Singh, appearing for the society, urged the court to direct the maintenance of the equipment comprising lifts, power generator, fire-fighting equipment and a pump house.
 
The bench was told that entire equipment whose maintenance the ACHS was seeking was worth Rs15 crore and if it was not maintained, then it will not operate and also damage the building.
 
Rejecting the society's plea to permit its representatives to access the building for a few hours every day for maintenance of the equipment, the bench offered it two options - either pay for it or take away the equipment and bring it back if it "at all" succeeds in saving the building.
 
"If you at all succeed (in saving the building, ordered to be demolished by the Bombay High Court in its April 29 order), then you will get the building, then pay for its maintenance," the bench told Singh.
 
However, the bench said that government too can maintain the equipment it if it decides to use the building during the pendency of the society's plea against high court judgment directing the demolition of the controversial building.
 
Singh then sought adjournment of the hearing, saying that the society would like to deliberate on the issue.
 
Adjourning the matter for further hearing on September 1, the bench also asked Solicitor General Ranjit Kumar to take instructions if the government wanted to use this building and take the responsibility of maintaining the equipment.
 
The court had on July 22 refused to pass any interim order on the ACHS's plea for the stay of the April 29 high court judgment for demolition but gave the possession of the building to the defence estates directorate.
 
Ranjit Kumar, meanwhile, told the court that the ACHS had not complied with July 22 order of the court by which it was hand over possession of the building to defence estates.
 
The bench was told that there were 104 flats, and 93 of them were locked, and the defence estates have put their own seal on these flats.
 
The bench was told that the society have not even removed their furniture from the flats as ordered by the court on July 22.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Scorpene: DCNS seeks injunction to prevent further publication of data
French company DCNS has approached the Australian Supreme Court seeking an injunction against 'The Australian' from further publishing the leaked documents on India's Scorpene submarine project.
 
In response to an email from IANS, DCNS Head of Media Relations Emmanuel Gaudez said: "To be precise, DCNS is instructing a demand to The Australian in order to remove from its website the documents which it has published online and prevent the publishing of other documents."
 
The company DCNS, which is at the centre of a global submarine data leak scandal, wants to prevent the Aussie publication, The Australian, from releasing any more confidential data contained in 22,400 secret documents because it may cause harm to its customer -- the Indian Navy.
 
The company is also seeking a court order to force The Australian to hand over the documents and remove them from its website.
 
"The publication of this highly valuable document causes a direct harm to DCNS and its customer in terms of spread of sensitive and restricted information, image and reputation," says an affidavit by DCNS' lawyer Justine Munsie.
 
The Australian has redacted the most sensitive details from the documents before their publication.
 
Meanwhile, the Indian Navy top officers have said that they do not expect the project to be delayed and that the first Scorpene vessel, INS Kalvari, which is currently undergoing sea trials, will be inducted by the year-end.
 
Navy Chief Admiral Sunil Lanba on Monday said the leak is being taken "very seriously" and that mitigation measures will be taken based on the report of a committee examining the documents. 
 
The Indian Navy has maintained the leaked data will not compromise the boat's stealth capabilities, and an officer told IANS that, if needed, India is capable of making suitable changes in the submarines keeping in mind the "worst-case scenario".
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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