Moody’s cuts India growth to 7.3%

By: | Updated: May 31, 2018 6:43 AM

The Indian economy had grown 6.6% in 2017, it said. Moody’s acknowledged that economic growth in 2019 should benefit from a rise in rural consumption, aided by higher minimum support prices and a normal monsoon.

Moody’s Investors Service on Wednesday trimmed its India growth forecast to 7.3% for calendar year 2018 from a previous projection of 7.5%, saying higher oil prices, tighter financial conditions and the ongoing transition to the goods and services tax (GST) regime could slow down the pace of expansion. (AP)

Moody’s Investors Service on Wednesday trimmed its India growth forecast to 7.3% for calendar year 2018 from a previous projection of 7.5%, saying higher oil prices, tighter financial conditions and the ongoing transition to the goods and services tax (GST) regime could slow down the pace of expansion. “The Indian economy is in cyclical recovery led by both investment and consumption. However, higher oil prices and tighter financial conditions will weigh on the pace of acceleration,” it said in its global macro outlook report. However, it kept its 2019 growth forecast for the country unchanged at 7.5%. The Indian economy had grown 6.6% in 2017, it said. Moody’s acknowledged that economic growth in 2019 should benefit from a rise in rural consumption, aided by higher minimum support prices and a normal monsoon.

The appellate tribunal noted the chairman/managing director/director of RCom would undertake to pay Rs 550 crore to Ericsson within 120 days. The company has time till September 30 to repay Ericsson and in case of non-payment the interim order with regard to the resolution process will continue, the NCLAT said. “Taking into consideration the fact that, if the resolution process continues, the financial creditors and the operational creditors may suffer. In this backdrop, we say that the impugned orders of May 15 and May 18 passed by the adjudicating authority (NCLT, Mumbai) be stayed,” the appellate tribunal said, adding that RCom and Ericsson will file affidavits by June 7 stating that they will abide by the settlement.

Tushar Mehta, the counsel appearing on behalf of the joint lenders’ forum, told the court that assets of RCom will be sold for Rs 18,100 crore and the money will be used to repay its lenders. On Tuesday, the NCLAT had suggested RCom and its operational creditor Ericsson resolve their dispute over the latter’s unpaid dues. RCom had said in December last year that the current debt of Rs 45,000 crore will be reduced through monetisation of assets which include its telecom spectrum, towers, fibre, media convergence nodes (MCNs) and real estate in New Delhi, Chennai, Kolkata, Jigni and Tirupati. It had later announced that it has signed definitive binding agreements with Reliance Jio Infocomm for sale of wireless spectrum, tower, fibre and MCN assets.

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