Page 28 - Banking Finance November 2019

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cross the government's internal target of $350 billion. 59.4% of GDP in the year 2018-19. Similarly government
In the 2017-18 financial year, exports stood at $303.52 expenditure has also increased from 9.3% to 11.2% for the
billion. corresponding period.

Y On the other hand, a continuous shoot up in imports,
which grew at double digit levels for 6 of the last 12 Future outlook -
months, took cumulative imports to a soaring high of First quarter of current fiscal (2019-20) would also witness
$507.44 billion. This was nearly $42 billion more than relatively slow growth and from second quarter onward it
India's total bill in the preceding year. will pick up," Garg told reporters.

Silver lining Considering indicative data points and scenario, experts

However, the fiscal deficit at 3.4 per cent of GDP, was largely expect gradual recovery from H2FY20, led by decent
in line with expectations and can be a seen as a silver lining. monsoon, pickup in consumptions coupled with impetus from
On the brighter side, however, India's annual GDP growth monetary policy and measures in upcoming full union
rate stands at 6.8% while China reported 6.6%. Although budget.
India has maintained the title of fastest growing GDP rate,
there have been cases when it lost that title temporarily. Finance Secretary Subhash Chandra Garg said the slowdown
could continue in the first quarter of the current fiscal but
After a gap of five years, exports in 2018-19 saw their the situation would improve in the second quarter (July-
footprint on the country's Gross Domestic Product (GDP) September). "We see growth and consumption improving
rise, trade receipts reached record a high of $331 billion in in the July-September (second quarter) period. Problems
the last financial year. faced by NBFCs affected consumption in the finance sector,
expect credit growth in the NBFC sector to pick up . Expect
Private consumption has increased slightly from 59% to pick-up in capital and private investment", he added.

28 | 2019 | NOVEMBER | BANKING FINANCE