• Fitch Ratings cut India’s economic growth forecast for the next financial year starting April 1, to 6.8% from its previous estimate of 7%, on weaker than expected momentum in the economy.

• We still see Indian GDP growth to hold up reasonably well, at 6.8%, followed by 7.1% in FY21,” Fitch said in its Global Economic Outlook.

• Fitch Ratings cut India’s FY19 GDP growth forecast to 7.2% from 7.8% on December 6.

• The rating agency has also cut growth forecasts for FY20 and FY21 to 7% from 7.3% and 7.1 per cent from 7.3%, respectively.

• Fitch said, it’s benign oil price outlook and expectations of accelerating food prices in the coming months should support rural households’ income and consumption.

 

 

• RBI governor bats for permanent status to Finance Commission.

• Finance commissions have over the past several decades adopted different approaches with regard to principles of tax devolution, grants to be given to states and fiscal consolidation issues. In other words, there has to be continuity and change between finance commissions.

• There is a need to ensure broad consistency between Finance Commissions so that there is some degree of certainty in the flow of funds, especially to the states. This has become even more critical in the post GST scenario.

• If it is given permanent status, the Commission can function as a leaner entity in the intervening period till the next Finance Commission is set up in a full-fledged manner. During the intervening period, it can also address issues arising from implementation of the recommendations of the finance commission.

 

 

• NITI Aayog organised a day-long FinTech Conclave at Dr Ambedkar International Center, New Delhi.

• The objective of the conference was to shape India’s continued ascendancy in FinTech, build the narrative for future strategy and policy efforts, and to deliberate steps for comprehensive financial inclusion.

• The Conclave featured representatives from across the financial space - central ministries, regulators, bankers, startups, service providers and entrepreneurs.

• The Conclave was inaugurated by RBI Governor Shaktikanta Das.

• The Conclave will be inaugurated by Governor, RBI and will be attended by senior government officials, including Secretary (Department of Economic Affairs), Secretary (Department of Financial Services), Chairman (SEBI), Secretary (MeitY), Secretary (Department of Revenue), Secretary (MSME), Deputy Governors of RBI, among others. 

• Conclave will host more than 300 representatives from the leading Financial Institutions including HDFC Bank, IndusInd, ICICI Bank, SBI Card, Tata Capital and FinTechs including BankBazaar, PhonePe, Capital Float, Zerodha, PayTM, MobiKwik, PayU, leading venture capital investors, state governments, MSMEs and industry subject matter experts. The valedictory session of the conclave shall include presentations consolidating sector-specific findings of the various breakout panels on themes such as Digital Onboarding of Customers/Merchants for Financial Inclusion, Building Financial Products for Millennial India, Emerging Areas of FinTech, Fast Tracking Investments in FinTech Industry and Financial Inclusion of MSMEs.