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The Asian Independent 16 Oct to 31 Oct 2019

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www.theasianindependent.co.uk<br />

NEWS<br />

<strong>16</strong>-10-<strong>2019</strong> <strong>to</strong> <strong>31</strong>-10-<strong>2019</strong><br />

21<br />

B’desh, Nepal ahead of India as growth<br />

in South Asia slows down: WB report<br />

Washing<strong>to</strong>n : Bangladesh and<br />

Nepal are estimated <strong>to</strong> grow faster<br />

than India in <strong>2019</strong>, according <strong>to</strong> the<br />

World Bank, which said that overall<br />

growth in South Asia is projected <strong>to</strong><br />

slow down this fiscal in line with a<br />

global downward trend. Pakistan’s<br />

growth rate is projected <strong>to</strong> deteriorate<br />

further <strong>to</strong> a mere 2.4 per cent this fiscal<br />

year, as monetary policy remains<br />

tight, and the planned fiscal consolidation<br />

will compress domestic demand,<br />

it said.<br />

Growth in South Asia is projected<br />

<strong>to</strong> fall <strong>to</strong> 5.9 per cent in <strong>2019</strong>, down<br />

1.1 percentage points from April <strong>2019</strong><br />

estimates, casting uncertainty about a<br />

rebound in the short term, the World<br />

Bank said in its latest report. <strong>The</strong> latest<br />

edition of the South Asia Economic<br />

Focus, Making (De)centralization<br />

Work, finds that strong domestic<br />

demand, which propped high growth<br />

in the past, has weakened, driving a<br />

slowdown across the region.<br />

Imports have declined severely<br />

across South Asia, contracting<br />

between 15 and 20 per cent in Pakistan<br />

and Sri Lanka.<br />

In India, domestic demand has<br />

slipped, with private consumption<br />

growing 3.1 per cent in the last quarter<br />

from 7.3 per cent a year ago, while<br />

manufacturing growth plummeted <strong>to</strong><br />

below 1 per cent in the second quarter<br />

of <strong>2019</strong> compared <strong>to</strong> over 10 per cent<br />

a year ago.<br />

“Declining industrial production<br />

and imports, as well as tensions in the<br />

financial markets reveal a sharp economic<br />

slowdown in South Asia,” said<br />

Hartwig Schafer, World Bank Vice<br />

President for the South Asia Region.<br />

“As global and domestic uncertainties<br />

cloud the region’s economic outlook,<br />

South <strong>Asian</strong> countries should pursue<br />

stimulating economic policies <strong>to</strong> boost<br />

private consumption and beef up<br />

investments,” he said. <strong>The</strong> report<br />

New Delhi/Bengaluru :<br />

Passenger vehicle sales<br />

slumped 23.7% in September,<br />

the 11th straight month of<br />

decline, prompting an industry<br />

body <strong>to</strong> flag more job cuts if<br />

sales failed <strong>to</strong> pick up soon.<br />

Passenger vehicle sales<br />

dropped <strong>to</strong> 2,23,<strong>31</strong>7 units in<br />

September, the Society of<br />

Indian<br />

Au<strong>to</strong>mobile<br />

Manufacturers (SIAM) data<br />

showed, while passenger car<br />

sales dived 33.4% <strong>to</strong> 1<strong>31</strong>,281<br />

units. SIAM’s data comes as<br />

the domestic au<strong>to</strong>mobile industry<br />

faces a crippling slowdown<br />

in demand that has led <strong>to</strong> production<br />

cuts and thousands of<br />

job losses. <strong>The</strong> industry is seeing<br />

longest-ever streak of sales<br />

decline. “We are preparing for<br />

best-case and worst-case scenarios<br />

... worst case there will<br />

be more production and job<br />

cuts,” said SIAM president<br />

noted that South Asia’s current economic<br />

slowdown echoes the decelerating<br />

growth and trade slumps of 2008<br />

and 2012.<br />

With that context in mind, the<br />

report remains cautiously optimistic<br />

that a slight rebound in investment and<br />

private consumption could jumpstart<br />

South Asia’s growth up <strong>to</strong> 6.3 per cent<br />

in 2020, slightly above East Asia and<br />

the Pacific and 6.7 per cent in 2021.<br />

In a focus section, the report highlights<br />

how, as their economies become<br />

more sophisticated, South <strong>Asian</strong> countries<br />

have made decentralisation a priority<br />

<strong>to</strong> improve the delivery of public<br />

services. “Decentralisation in South<br />

Asia has yet <strong>to</strong> deliver on its promises<br />

and, if not properly managed, can<br />

degenerate in<strong>to</strong> fragmentation,” said<br />

Hans Timmer, World Bank Chief<br />

Economist for the South Asia Region.<br />

“To make decentralisation work for<br />

their citizens, we encourage South<br />

<strong>Asian</strong> central governments <strong>to</strong> allocate<br />

their resources judiciously, create<br />

incentives <strong>to</strong> help local communities<br />

compete in integrated markets, and<br />

provide equal opportunities <strong>to</strong> their<br />

people,” Timmer said.<br />

In India, growth is projected <strong>to</strong> fall<br />

<strong>to</strong> 6.0 this fiscal year. Growth is then<br />

expected <strong>to</strong> gradually recover <strong>to</strong> 6.9<br />

per cent in fiscal year 2021 and <strong>to</strong> 7.2<br />

Au<strong>to</strong> sec<strong>to</strong>r crisis deepens<br />

Car sales down 33.4% in Sept,<br />

passenger vehicles slip 24%<br />

Rajan Wadhera. Car and au<strong>to</strong><br />

component makers have cut<br />

thousands of jobs and halted<br />

some production as the industry<br />

grapples with various challenges<br />

amid a broader economic<br />

slowdown. <strong>The</strong> government<br />

stepped in last month, announcing<br />

a corporate tax rate <strong>to</strong> boost<br />

manufacturing and lift growth.<br />

On Friday, SIAM’s Wadhera<br />

said it expected some improvement<br />

in the situation on the<br />

back of the festive season.<br />

However, Wadhera refrained<br />

from giving out a forecast for<br />

future sales, saying SIAM<br />

would maintain a cautious<br />

stance until <strong>Oct</strong>ober performance<br />

numbers are in.<br />

Aggregate revenue for listed<br />

au<strong>to</strong>mobile companies is estimated<br />

<strong>to</strong> have dropped by onefourth<br />

in July-September,<br />

Crisil, the Indian arm of S&P<br />

rating agency, said in a note on<br />

Thursday.<br />

<strong>The</strong> drop in au<strong>to</strong> sales is also<br />

expected <strong>to</strong> hit earnings for<br />

insurance companies such as<br />

New India Assurance and<br />

ICICI Lombard General<br />

Insurance in the September<br />

quarter.<br />

per cent in the following year.<br />

In Bangladesh, the real GDP<br />

growth is estimated at 8.1 per cent in<br />

<strong>2019</strong>, up from 7.9 per cent in 2018, the<br />

report said, adding that the country’s<br />

growth is projected at 7.2 per cent in<br />

2020 and 7.3 per cent in 2021. <strong>The</strong><br />

garment industry of Bangladesh has<br />

benefitted immensely from the ongoing<br />

trade tensions between the US and<br />

China, Timmer said.<br />

“In general, what we see in high<br />

frequency data is that Bangladesh is<br />

doing better than the rest of the region,<br />

especially than India, Sri Lanka and<br />

Pakistan. We see that in industrial production,<br />

we see that in exports,” he<br />

New Delhi : Drug firm<br />

Torrent Pharma Inc is recalling<br />

73,896 bottles of hypertension<br />

treatment tablets from the US<br />

and Puer<strong>to</strong> Rico on account of<br />

deviations from current good<br />

manufacturing norms, according<br />

<strong>to</strong> a report of the US health<br />

regula<strong>to</strong>r.<br />

<strong>The</strong> US-based arm of<br />

Torrent Pharmaceuticals is<br />

recalling 8,688 bottles of<br />

Losartan Potassium tablets<br />

USP 50 mg, from the US and<br />

Puer<strong>to</strong> Rico, the Enforcement<br />

Report of the United States<br />

Food and Drug Administration<br />

(USFDA) said.<br />

It is also recalling 39,432<br />

bottles of Losartan Potassium<br />

tablets, USP in the strength of<br />

100 mg from the US and Puer<strong>to</strong><br />

Rico, it added. As per the<br />

report, Torrent Pharma Inc is<br />

recalling 17,088 bottles of<br />

Losartan Potassium<br />

/Hydrochlorothiazide tablets,<br />

said. “So that confirms the s<strong>to</strong>ry that<br />

has been <strong>to</strong>ld now many times that the<br />

garment industry in Bangladesh is<br />

doing very well and very likely that<br />

industry has benefited from the trade<br />

tensions between the US and China.<br />

Interestingly, it’s not just <strong>to</strong> the US or<br />

China, but also <strong>to</strong> other countries that<br />

they have very strong export performance,”<br />

Timmer said.<br />

In Nepal, GDP growth is projected<br />

<strong>to</strong> average 6.5 per cent over this and<br />

next fiscal year, backed by strong<br />

services and construction activity due<br />

<strong>to</strong> rising <strong>to</strong>urist arrivals and higher<br />

public spending.<br />

In Afghanistan, with improved<br />

farming conditions and assuming<br />

political stability after the elections,<br />

growth is expected <strong>to</strong> recover and<br />

reach 3 per cent in 2020 and 3.5 per<br />

cent in 2021. In Bhutan, GDP growth<br />

is expected <strong>to</strong> jump <strong>to</strong> 7.4 per cent this<br />

fiscal year. In Maldives, growth is<br />

expected <strong>to</strong> reach 5.2 per cent in <strong>2019</strong>.<br />

In Sri Lanka, growth is expected <strong>to</strong><br />

soften <strong>to</strong> 2.7 per cent in <strong>2019</strong>.<br />

However, supported by recovering<br />

investment and exports, as the security<br />

challenges and political uncertainty<br />

of last year dissipate, it is projected <strong>to</strong><br />

reach 3.3 per cent in 2020 and 3.7 per<br />

cent in 2021.<br />

“Pakistan’s economy is slowing as<br />

the country passes through yet another<br />

macroeconomic crisis with high twin<br />

deficits and low international reserves.<br />

With an IMF Extended Fund Facility<br />

supported stabilization program in<br />

place, growth is expected <strong>to</strong> remain<br />

low in the near-term,” the report said.<br />

“Obviously, the tensions are problematic<br />

for the whole region, but as we<br />

set off a year ago, the lack of integration<br />

in<strong>to</strong> international markets is not<br />

just because of a lack of regional integration.<br />

Like India, Pakistan is underperforming<br />

in all markets and in the<br />

world,” Timmer said.<br />

Torrent Pharma recalls 74,000<br />

bottles of hypertension drug from US<br />

USP 50mg/12.5mg from the<br />

same markets. It is also recalling<br />

8,688 bottles of Losartan<br />

P o t a s s i u m /<br />

Hydrochlorothiazide tablets,<br />

USP 100mg/25mg. All these<br />

recalls in the US and Puer<strong>to</strong><br />

Rico by Torrent Pharma Inc are<br />

ongoing voluntary class II<br />

recalls, USFDA said.<br />

<strong>The</strong> reason for the recalls is,<br />

“CGMP Deviations: FDA lab<br />

confirmed presence of an impurity,<br />

N-Methylnitrosobutyric<br />

acid (NMBA) in the finished<br />

product above the interim<br />

acceptable daily intake level of<br />

9.82 parts per million,” it<br />

added.

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