India GDP growth slows
June 4, 2019 -- Indian business organisations have urged newly re-elected Prime Minister Narendra Modi to push for bolder economic reforms to meet the aspirations of the country’s young and ambitious population.
The call comes as India’s hotly awaited first-quarter economic growth cooled to 5.8 per cent -- its slowest pace since Modi was first elected in 2014 -- costing the nation the title of fastest growing economy in the world.
The Confederation of Indian Industry (CII) wants changes to tax policies to encourage more risk capital, government help for companies seeking land for projects, and reforms of the labour code to promote employment. The CII says this would help push the growth of India’s gross domestic product towards a target of 10 per cent a year.
The appeal for reforms comes just days after Modi started a second five-year term in office, against the backdrop of a sharp economic slowdown and rising trade tensions with the U.S. On Friday, President Donald Trump stripped India of duty-free access for $6.3 billion worth of exports to the U.S.