The Asian Independent 16 Oct to 31 Oct 2019
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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.