Public sector banks merger: Modi govt to announce big bang plan soon

Finance ministry has called a meeting with chief executives of ten public sector banks, on Friday.

The National Democratic Alliance (NDA) government has readied its mega plan for merging multiple set of public sector banks (PSB) and is set to make an announcement anytime soon, according to multiple sources.

The department of financial services in the finance ministry has called a meeting with chief executives of ten public sector banks, which are seen as top contenders for merger, on Friday.

The banks invited for consultations on Friday are: Union Bank of India, Canara Bank, Punjab National Bank, United Bank, Oriental Bank of Commerce, United Bank, Allahabad Bank, Corporation Bank, Syndicate Bank and Andhra Bank.

“The PSB merger will be announced anytime soon as part of the government's reforms agenda,” said a top source familiar with the development.

Punjab National Bank, Union Bank of India and Canara Bank might be banks which will be subsuming other PSBs.

“It looks like PNB will be merged with three more banks, including Andhra Bank and Oriental Bank of Commerce,” another source said.

In her press briefings recently, Finance Minister Nirmala Sitharaman has been dropping hints of two more set of reform measures that the government is set to announce.

For the first time, under the Narendra Modi government’s tenure, two set of PSB mergers took place — One, five associate banks and Bharatiya Mahila Bank merged with State Bank of India (April 2017), and two, Dena Bank, Vijaya Bank merged with Bank of Baroda which came into effect from April 1 this year.

The central government has to consult the RBI before formulating a plan for PSB merger, according to the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980.

Sources said the central government has already consulted the RBI regarding its merger plans earlier this year.

The plan for PSB merger has to be approved by a group of ministers, known as the alternative mechanism. Sitharaman and commerce and industry minister Piyush Goyal are a part of it.

Business Standard

J&K Governor announces 50,000 govt jobs for Kashmiris in next 3 months

In his press conference, the J&K Governor sought to justify detention and imprisoning of mainstream politicians.

Business Standard : The Jammu & Kashmir (J&K) administration will try filling 50,000 vacancies in government jobs in the next two-three months in the soon-to-be-created Union Territory, J&K Governor Satya Pal Malik said on Wednesday.

Malik, addressing his first press conference after Parliament revoked provisions of Article 370 in the first week of August, said the Centre would soon make a ‘big’ announcement on J&K.

In New Delhi, government sources denied reports that it has constituted a Group of Ministers, or GoM, to look into development, economic and social issues for J&K and Ladakh. While there was speculation of it, the government did not announce any special package for either Ladakh or J&K. The two union territories come into existence on October 31. The governor's promise on jobs echoes the commitment that Prime Minister Narendra Modi had made to the people of the region in his address to the nation earlier this month.

In his press conference, the J&K Governor sought to justify detention and imprisoning of mainstream politicians. He said times spent by politicians in jail would help them in their political careers. “Don't you want that people should become leaders. I have gone to jail 30 times. Those who will go to jail, will become leaders. Let them be there. The more they spend time in the jail, the more they will claim during elections...that I have spent six months behind bars...

Malik also said restrictions in J&K were necessary to prevent civilian causalities. The Internet is a handy tool for anti-national elements and the restoration of connections will be deferred for some more time, Malik said. He said pellet guns were used by security personnel during protests in the Kashmir Valley, but said forces took precaution to prevent injuries.

Government sources said Defence Minister Rajnath Singh will be visiting Ladakh on Thursday. Senior officials of the Human Resource Development (HRD) Ministry will visit J&K and Ladakh soon to explore the possibilities of expansion of educational facilities there Union HRD Minister Ramesh Pokhriyal ‘Nishank’ said.

Speaking at an event to distribute awards for community radio in the national capital, Information and Broadcasting Minister Prakash Javadekar said the "biggest punishment" for people is when they have no means of communication. He also extolled the benefits of scrapping of provisions of Article 370.

"This is the power and need of communication...when people store everything in their hearts and are unable to tell anyone about it, is the biggest punishment.

No single 'gay gene' defines sexuality, finds largest-ever DNA analysis

The new statistical analysis revealed five points in our chromosomes, called loci, which appear closely linked to sexuality, though each individually has a 'very small' influence.

Business Standard : Like size or intelligence, sexual attraction isn't defined by one gene alone, but is instead the result of the complex interplay between multiple regions of the genome and hard to pin environmental factors.

That's the conclusion of an analysis conducted on half a million DNA profiles as part of a giant study by researchers in Europe and the United States published in the influential journal Science on Thursday.

Its authors hope to bury the notion, popularised in the 1990s, of the existence of an all powerful "gay gene" that determines sexuality in the way eye colour is defined.

"We... found that it's effectively impossible to predict an individual's sexual behaviour from their genome," said Ben Neale, a member of MIT and Harvard's Broad Institute, one of several organisations involved in the work.

Sexual orientation does have a genetic component, say the researchers, confirming previous smaller studies, notably on twins.

But the effect is mediated by a myriad of genes. "There is no single gay gene but rather the contribution of many small genetic effects scattered across the genome," said Neale.

Added to this are environmental factors: how a person is raised in childhood, where they live as an adult etc.

Take for example height: the genetic component is indisputable and linked to how tall your parents are or were. But other factors like nutrition during childhood play an important part.

The same is true for how likely you are to have a heart attack. Certain genes lead to a predisposition toward cardiac disease, but lifestyle and diet are ultimately more significant.

The new statistical analysis revealed five points in our chromosomes, called loci, which appear closely linked to sexuality, though each individually has a "very small" influence.

It also turns out that one of these markers is associated with hair loss, which suggests a link with the regulation of sexual hormones.

It's believed that these five markers could be just the beginning, with thousands more awaiting discovery in future.

New speed breaker on India's road to $ 5 trn economy; NHAI's mounting debt

NHAI's debt has increased seven-fold in the past five years.

Business Standard : India’s path to economic recovery faces another obstacle, with Prime Minister Narendra Modi asking the state road builder to stop constructing highways after its debt ballooned almost seven-fold over the past five years.

"National Highways Authority of India totally logjammed with unplanned and excessive expansion of roads," the prime minister’s office wrote to NHAI in a letter dated August 17. "NHAI mandated to pay several times the land cost; its construction costs also shooting up. Road infrastructure has become financially unviable."

Modi’s office proposed that NHAI be transformed into a road-asset management company, according to the letter obtained by Bloomberg, and the prime minister’s office asked NHAI to reply within a week.

The decision is a reversal from Modi’s first term, when his administration was praised for its breakneck speed of highway construction that helped make India one of the fastest-growing economies in the world. However this came with the burden of escalating costs, leaving NHAI increasingly dependent on the government for financial support at a time when Modi is looking to contain his budget deficit.

Restricting road-building risks imperiling Modi’s target to make India a $5 trillion economy as roads are necessary for socio-economic development, said Vikash Kumar Sharda, a partner at Infranomics Consulting LLP, who previously consulted for PWC India. “Road is critical infrastructure, and putting breaks on it will not only result in a slowdown of highway construction but also of other sectors that are dependent on it.”

There’s a strong co-relation between economic growth and investments in infrastructure, with roads accounting for about 3.1% of gross value added, Modi’s economic advisers said in a report this year. Data due Friday will probably show India’s gross domestic product expanded 5.7% in the quarter through June, the slowest pace in five years.

Modi’s office now wants NHAI to revert to a model used by his predecessor, where NHAI would auction projects to developers. They’d construct the roads, collect toll from users and then would transfer ownership back to NHAI after an agreed period. Weak private sector participation pushed Modi to scrap this practice and he permitted NHAI to bear as much as 100% of the costs in certain road projects that led to ballooning debt.

India set to outlaw six single-use plastic products on October 2: Report

India lacks an organised system for management of plastic waste, leading to widespread littering across its towns and cities.

India is set to impose a nationwide ban on plastic bags, cups and straws on October 2, officials said, in its most sweeping measure yet to stamp out single-use plastics from cities and villages that rank among the world's most polluted.

Prime Minister Narendra Modi, who is leading efforts to scrap such plastics by 2022, is set to launch the campaign with a ban on as many as six items on October 2, the birth anniversary of independence leader Mahatma Gandhi, two officials said.

These include plastic bags, cups, plates, small bottles, straws and certain types of sachets, said the officials, who asked not to be identified, in line with government policy.

"The ban will be comprehensive and will cover manufacturing, usage and import of such items," one official said.

India's environment and housing ministries, the two main ministries leading the drive, did not respond to emails from Reuters to seek comment.

In an Independence Day speech on August 15, Modi had urged people and government agencies to "take the first big step" on October 2 towards freeing India of single-use plastic.

Concerns are growing worldwide about plastic pollution, with a particular focus on the oceans, where nearly 50% of single-use plastic products end up, killing marine life and entering the human food chain, studies show.

The European Union plans to ban single-use plastic items such as straws, forks, knives and cotton buds by 2021.

China's commercial hub of Shanghai is gradually reining in use of single-use plastics in catering, and its island province of Hainan has already vowed to completely eliminate single-use plastic by 2025.

India lacks an organised system for management of plastic waste, leading to widespread littering across its towns and cities.

The ban on the first six items of single-use plastics will clip 5% to 10% from India's annual consumption of about 14 million tonnes of plastic, the first official said.

Business Standard

Fitbit announces Versa 2, Aria Air with Premium subscription service

The fitness wearable maker will bring a high-end smartwatch in Versa 2, low-cost smartwatch Aria Air and Fitbit Premium from the second week of September.

Business Standard : Fitbit has announced two new smartwatches and a new paid premium subscription service for personalised guidance and coaching.

The fitness wearable maker will bring a high-end smartwatch in Versa 2, low-cost smartwatch Aria Air and Fitbit Premium from second week of September.

The price of Versa 2 starts from Rs 20,999 while Aria Air will cost Rs 4,999. Fitbit Premium will start rolling out in September 2019 at Rs 819 per month or Rs 6,999 per year.

Fitbit Versa 2

The Fitbit Versa 2 is the upgraded version of Fitbit Versa with swimproof design and sleep tracking features such as Sleep Score and smart wake. Versa 2 also features on-device microphone, which enables built-in Alexa, along with a Spotify app. The smartwatch comes with up to 5 days of battery back up.

Versa 2 also includes automatic activity tracking, 24/7 heart rate tracking, over 15 goal-based exercise modes, connected GPS and water resistance up to 50 meters. It is also powered by a faster processor compared to Versa for better performance and seamless navigation. Plus, a larger AMOLED display.

Versa 2 Special Edition devices will also come with a free three-month trial of the Fitbit Premium membership. Versa 2 is available for Rs 20,999 in black with a carbon case, petal with a copper rose aluminum case, and stone with a mist grey case.

Versa 2 Special Edition is available for Rs 22,999 in navy and pink with a copper rose aluminum case and smoke with a mist grey case. Versa 2 will be available in stores worldwide beginning September 15, 2019

Fitbit Aria Air

Fitbit Aria Air is a low-cost smartwatch that tracks heart rate, BMI, sleep and nutrition data along with other health metrics.

Fitbit Aria Air is available in black and white for pre-order on Fitbit.com and select retailers worldwide starting late September 2019 for Rs 4,999.

For agricultural loans, bankers call for longer repayment period

There were also suggestions to have an agriculture credit guarantee scheme, and a stronger institutional network to prevent multiple lending in the agriculture sector.

In view of the significant stress in the agriculture sector, bankers at the state-level consultancy meet in Kolkata have called for longer repayment periods for loans under Kisan Credit Card (KCC) from 12 months to 36 or 48 months.

There were also deliberations on allowing farmers to take fresh loans even if they fail to repay the entire loan, as long as they service the interest.

Based on direction from the department of financial services, public sector banks started a three-stage consultation process last week.

They focused on nine issues, including digital banking, credit to micro, small and medium enterprises (MSMEs), and agriculture sectors, direct transfer of benefits as well as education loans, among other issues.

This month has seen intra-bank as well as inter-bank meetings to discuss key issues. The final set of suggestions from all the meetings will be sent to the Centre, which will organise a meeting with banks in the first week of September.

“Stress in the agriculture sector is touching double digits and is a phenomenon visible across the banking sector. Bankers are really concerned about the issue,” said Ashok Kumar Pradhan, managing director and chief executive officer (MD & CEO) of United Bank of India, at a press meet in Kolkata last week.

There were also suggestions to have an agriculture credit guarantee scheme, and a stronger institutional network to prevent multiple lending in the agriculture sector.

Some of the suggestions at the branch level also included the need to press the government for digitisation of land records, failing which there had been instances of multiple borrowings.

At the branch-level meet, Rajnish Kumar, chairman, State Bank of India, too, stressed the need to revamp agriculture and MSME lending practices, given the high stress in these sectors.

Bankers have also suggested the need to have a credit guarantee mechanism for the Pradhan Mantri Mudra Yojana (PMMY), the government’s flagship credit scheme for micro and small enterprises. It is another source for a big chunk of the non-performing assets or NPAs.

Business Standard

Apple to start online sales in India soon with local sourcing rules eased

The new investment rules could provide a boost to Apple, allowing it to grow sales in the country and possibly help it reduce its dependency on China by building an alternative supply chain in India.

Business Standard : Apple Inc is poised to start online sales of its devices in India within months, a person familiar with the matter said, benefiting from new rules making the world’s fastest-growing smartphone market more attractive to foreign brands.

On Wednesday, India eased rules that forced companies such as Apple to source 30% of their production locally -- a requirement the iPhone maker has been lobbying against for years -- to include exports as part of the requirement.

That rule posed a problem for electronics brands because most of its devices and components are manufactured in China. The government also allowed so-called single brand retailers to set up online stores before physical shops.

With escalating trade tensions damaging ties between the US and China, New Delhi’s latest investment rules could provide a boost to Apple, allowing it to grow sales in the country and possibly help it reduce its high dependency on China by building out an alternative supply chain in India.

ALSO READ: Apple's $44 billion valuation drop shows growing cost of reliance on China

The Cupertino, Calif-based device and services company will begin selling its iPhone, iPads and Apple Mac computers online in the coming months. It’s also firming up the Mumbai location of its first company-owned brick & mortar store in India -- likely to open next year -- the person said, asking not to be identified as the details are confidential. Selling online will be a big step forward for Apple in a country where counterfeit products abound in online platforms increasing buyers’ distrust.

Apple didn’t immediately respond to an email seeking comments.

Some of the phone maker’s older devices are assembled by Taiwanese contractor Wistron Corp. in a factory in Bangalore, while the world’s largest contract manufacturer, Foxconn Technology Group, tests assembly of Apple’s latest iPhone X in a factory near Chennai.

SC refers all petitions on Article 370 to 5-judge Constitution Bench

SC also issued notice to the Centre on plea by Kashmir Times Executive Editor seeking a direction for relaxing restrictions on internet, landline, and other communication channels.

Supreme Court (SC) on Wednesday referred all petitions challenging the scrapping of Article 370, which gave special status to Jammu and Kashmir, to a five-judge Constitution Bench.

The Supreme Court issued a notice to the Centre and others and said that the five-judge Constitution Bench would hear all the petitions related to abrogation of Article 370 in the first week of October.

The apex court also issued a notice to the Centre on the plea by Kashmir Times Executive Editor, Anuradha Bhasin, seeking a direction for relaxing restrictions on internet, landline, and other communication channels. The SC sought a detailed response from the Centre within 7 days.

Further, the Supreme Court refused a request from the Centre to appoint an interlocutor for Jammu & Kashmir.

In another development, the Supreme Court also allowed CPM leader Sitaram Yechury to visit J&K and meet his party leader and former MLA, Yousuf Tarigami.

Chief Justice of India (CJI) Ranjan Gogoi said, "We will permit you to go, you are the general secretary of a party. Don't go for anything else."

The apex court also said that Yechury's visit should only be to meet Tarigami as a friend, and not for any political purpose.

Business Standard

Chandrayaan-2 performs 3rd lunar-bound orbit maneuver; landing in 11 days

India's second lunar expedition -- would shed light on a completely unexplored section of the Moon, its South Polar region.

Business Standard : With just 11 days to go for its moon landing, the Indian Space Research Organisation on Wednesday said it has successfully performed the third lunar-bound orbit maneuver for Chandrayaan-2 spacecraft.

All spacecraft parameters were normal, the city-headquartered space agency said after the maneuver on the spacecraft that is currently in the lunar orbit for its rendezvous with the Moon.

"Third Lunar bound orbit maneuver for Chandrayaan-2 spacecraft was performed successfully today (August 28, 2019) beginning at 0904 hrs IST, using the onboard propulsion system. The duration of the maneuver was 1190 seconds. The orbit achieved is 179 km x 1412 km," ISRO said in an update.

"All spacecraft parameters are normal. The next Lunar bound orbit maneuver is scheduled on August 30, 2019 between 1800 - 1900 hrs IST," it said.

In a major milestone for India's second Moon mission, theChandrayaan-2spacecraft had successfully entered the lunar orbit on August 20 by performing Lunar Orbit Insertion (LOI) maneuver.

After performing second lunar bound orbit maneuver on August 21, ISRO had released two sets of pictures of moon captured by the spacecraft.

There will be two more orbit manoeuvres to make the spacecraft enter into its final orbit passing over the lunar poles at a distance of about 100 km from the Moon's surface.

ISRO has said subsequently the lander would separate from the Orbiter (on September2) and enter into a 100 km X 30 km orbit around the Moon.

Then it would perform a series of complex braking maneuvers to soft land in the South polar region of the Moon on September 7, 2019.

ISRO Chairman K Sivan has said the proposed soft-landing on the Moon is going to be a "terrifying" moment as it is something ISRO has not done before, where as LOI maneuver was successfully carried out during theChandrayaan-1 mission.

The health of the spacecraft is being continuously monitored from the Mission Operations Complex (MOX) at ISRO Telemetry, Tracking and Command Network (ISTRAC) in Bengaluru with support from Indian Deep Space Network (IDSN) antennas at Bylalu, near Bengaluru, the space agency has said.

Indian Bonds rally on RBI windfall, focus now on 10Y issuance: Report

The global financial services major DBS, however, noted that interests in this paper is likely to be lukewarm ahead of the new 10Y issuance in September or October.

Business Standard : The relief rally in Indian bonds on Tuesday was largely owing to the Reserve Bank's decision to transfer a record Rs 1.76 lakh crore dividend and surplus reserves to the government, a DBS report said.

The global financial services major, however, noted that interests in this paper is likely to be lukewarm ahead of the new 10Y issuance in September or October.

"INR bonds rallied on Tuesday, as the RBI plans to transfer dividends/ reserves well in excess of budgeted target and 2-3 times past years' proceeds. This will prove to be a timely fiscal windfall for the government," the DBS report said adding that the next focus will now be on the new 10Y issuance.

"Beyond short-term gyrations in the 10Y yields amid low volumes, interests in this paper is likely to be lukewarm ahead of the new 10Y issuance in September or October," noted Eugene Leow, Rates Strategist, and Radhika Rao, Economist, at DBS Group Research in the report.

Governor Shaktikanta Das-led RBI central board gave its nod for transferring to the government a sum of Rs 1,76,051 crore comprising Rs 1,23,414 crore of surplus for the year 2018-19 and Rs 52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF), the apex bank said in a statement on Monday.

The receipts from the RBI will give a fillip to the government's efforts to boost the economy from a five-year low as well as meet the fiscal deficit target.

Regarding concerns as to how this windfall will be utilised, the report said that most likely it will be used to fund additional spending plans or plug a shortfall in budgeted tax revenues as this "will allow the government to compensate for any slowdown in direct and indirect collections and contain fiscal deterioration".

The report further said that besides RBI dividend contributions, bonds have drawn confidence from last week's sector-specific measures announced by the Indian government.

On August 23, the Indian government announced a raft of measures, including rollback of enhanced super-rich tax on foreign and domestic equity investors, exemption of startups from 'angel tax', a package to address distress in the auto sector and upfront infusion of Rs 70,000 crore to public sector banks, in efforts to boost economic growth from a five-year low.

Direct Taxes Code panel for status quo on LTCG tax, STT; wants DDT to go

Suggests rejig of 20% and 30% slabs of personal income tax.

The task force to overhaul the nearly 60-year-old Income Tax Act has recommended retaining the long-term capital gains (LTCG) tax and the securities transaction tax (STT), while abolishing the dividend distribution tax (DDT). The panel has instead suggested imposing tax on the person receiving dividends, sources in the know said.

The proposed move to withdraw the DDT would help encourage investments by addressing multiple taxation of income and bringing down the effective tax rate on companies, which is among the highest in the world, the sources said.

The eight-member panel on the direct taxes code (DTC), which submitted its report to Finance Minister Nirmala Sitharaman last week, has proposed a range of reforms for personal income tax by rationalising the highest tax slabs of 20 per cent and 30 per cent to improve compliance.

Although the market has been demanding the withdrawal of the LTCG tax reintroduced in last year’s Budget, the panel, led by Central Board of Direct Taxes Member Akhilesh Ranjan, is learnt to have taken a view that no preferential treatment must be given to any class of investors. The LTCG tax is levied on gains arising from the transfer of listed equity shares exceeding Rs 1,00,000, at 10 per cent.

Besides, the case for retaining the STT has been its simplicity of collection and assured revenues. The STT is a direct tax payable on the value of taxable securities transactions done through a stock exchange.

It is levied at 0.1 per cent of turnover for delivery-based equity transactions, while for intra-day transactions, the STT for purchase is nil, and for sale, it is 0.025 per cent of the turnover.

“There is a strong case to do away with the DDT to improve investor sentiment. It is resulting in multiplicity of taxation for companies. Besides, foreign shareholders cannot avail of foreign tax credit as the DDT is not borne directly by them,” said a person in the know. “LTCG should continue to be levied as is the case today to promote parity.”

Business Standard

Hyundai plans to roll out BS6 models early next year; to sell BS4 till FY20

In comparison, Maruti Suzuki has seven petrol models that are now BS6 emission norms compliant.

Business Standard : South Korean auto major Hyundai plans to start rolling out upgraded BS6 compliant models, including diesel trims, on a regular basis by early next year, a top company official said.

The company, which is present in the country through a wholly-owned subsidiary, also plans to simultaneously keep selling BS4 vehicles till end of March next year in order to offer lower priced units to prospective customers.

"I estimate that by the end of this year or early next year, the introduction of BS6 vehicles will happen," Hyundai Motor India MD and CEO SS Kim told PTI in an interview.

In terms of technology, the company is ready with most of the work from research and development perspective, he added.

Kim, however, clarified that the ramp up of BS6 models is going to happen in a gradual manner.

Hyundai currently has just one product, the recently launched Grand i10 Nios, that is BS6 compliant. The model's petrol trim is BS6 compliant while the diesel variants are still conform to BS4 regulations.

In comparison, Maruti Suzuki has seven petrol models that are now BS6 emission norms compliant.

When asked if the company's entire current product portfolio would see an upgrade to BS6 levels, Kim said, "As per our plan, all products, including diesel variants, will be upgraded to BS6 level."

He said the company will continue the production and sales of BS4 vehicles until the end of next year.

"With BS6, the prices of cars is expected to go up so if the customer wants to buy some economical product, it is our responsibility to provide and supply that," he added.

When asked if the company expects decent pre-buying of BS4 vehicles taking place before April 1, 2020, Kim said that Hyundai's global experience showed that whenever norms got changed, there were significant sales as people wanted to buy cars at a reasonable price.

With government clearing air on BS4 registrations, there are no uncertain factors left anymore regarding the technology, he added.

Indian economy to grow at slowest pace in 5 years in June quarter: Poll

The poll median showed the economy was expected to have grown at a year-on-year pace of 5.7 per cent in the June quarter, a touch slower than 5.8 per cent in the preceding three months.

The Indian economy likely expanded at its slowest pace in more than five years in the April-June quarter, driven by weak investment growth and sluggish demand, according to economists polled by Reuters.

That would reinforce concerns seen in the minutes from the central bank's August meeting, which showed policymakers were worried about weak growth and indicated further rate cuts in the next few months to boost the slowing economy.

Keep Reading: Business Standard

The poll median showed the economy was expected to have grown at a year-on-year pace of 5.7 per cent in the June quarter, a touch slower than 5.8 per cent in the preceding three months. But a large minority - about 40 per cent of nearly 65 economists - expect an expansion of 5.6 per cent or lower.

The GDP data is due to be released at 12:00 GMT on Friday.

If the forecast is realised, it would be the weakest start in the first three months of a fiscal year in seven years.

"The deceleration in growth that commenced in the second quarter of the fiscal year ending March 2019 is likely to have continued," said Rini Sen, India economist at ANZ.

"A host of high frequency indicators - consumption and investment - have continued to weaken. The most prominent ones include auto sales, output of consumer durables, cement and steel production."

Domestic passenger vehicle sales in July dived at the steepest pace in nearly two decades and declined for the ninth straight month in July, largely due to a liquidity crunch causing huge job cuts in the sector.

These measures, in addition to the risk of further escalation of the US and China trade war are weighing on demand and business confidence in India.

The median response to an extra question in the poll, which was taken Aug. 21-26, showed the average growth rate for the current fiscal year 2019-2020 is likely to be 6.5 per cent despite a weak start. But it is a downgrade from 6.8 per cent predicted just last month and well below the RBI's projection of 6.9 per cent.

Helping reduce Indo-Pak tensions key takeaway from G7 Summit: White House

Prime Minister Modi, flanked by Trump, on Monday categorically rejected any scope for third party mediation on Kashmir.

Business Standard : The White House on Monday claimed helping reduce India-Pakistan tension is one of the five big takeaways from the just-concluded G7 Summit.

President Donald Trump returned home from the Group of Seven Summit held in the French city of Biarritz from August 24 and 26.

In its daily round-up for Monday, the White House said, "The five big takeaways are: A message of unity, security a billion-dollar trade deal, promoting the United States-Mexico-Canada Agreement (USMCA), developing stronger trade with Europe and helping to reduce India-Pakistan tension."

"In his meeting with Prime Minister Narendra Modi of India, President Trump reaffirmed the need for dialogue between India and Pakistan and also worked to build on the great economic relations between our nations," it said.

Prime Minister Modi, flanked by Trump, on Monday categorically rejected any scope for third party mediation on Kashmir, saying it was a bilateral issue between India and Pakistan, and "we don't want to trouble any third country" -- a position that was immediately backed by the American leader who had recently offered to mediate.

In a tweet, the White House said during the meeting with Modi, Trump also acknowledged India's role as a critical partner in Afghanistan. The accompanying two photos released by the White House reflected a jubilant mood in the meeting room in France and the handshake between the two leaders.

Trump and First Lady Melania Trump returned home late Monday night after attending the G7 Summit.

"Trump met with world leaders to strengthen our alliances, secure better trade deals, and -- as always -- keep the interests of the American people front and centre on the global stage," the White House said.

During the summit, Trump worked with American allies to chart a course toward even more prosperity both here at home and around the world, the White House said.

According to the White House, Trump and President Emmanuel Macron of the host nation, over the weekend, worked together to achieve progress on a number of fronts, including global security, fair trade practices, and better economic opportunity for all.