RBI data shows 88% fall in funds flow to commercial sector in April-September
New Delhi: Fund flows from lending institutions to the commercial sector have declined as much as 88% till mid-September in this financial year, the Reserve Bank of India said in a report on Friday. Such flows collapsed from Rs 7.36 lakh crore between April and mid-September 2018 to Rs 90,995 crore in the same period this year.
This indicates a slowdown in investment activity, which can be attributed to risk aversion and demand slowdown, the central bank said in the Monetary Policy Report for October. Global uncertainties have also weakened domestic investment activity, according to the report.
In the April to mid-September period in 2018, non-banking financial companies lent Rs 41,200 crore to the commercial sector, but this year, the flow reversed – Rs 1.26 lakh crore moved from the commercial sector to the NBFCs. Non-food credit flow from banks also reversed, from Rs 1.65 lakh crore going to the commercial sector to Rs 93,688 crore going to the banks. Among non-banking lenders, public issues by non-financial entities rose over nine times to Rs 58,326 crore.
India’s economy has been faltering in the last few quarters. Economic growth rate slipped to 5% in the April-June quarter, the lowest in over six years, and the outlook is not too good. The Reserve Bank of India on Friday lowered the economic growth rate forecast to 6.1% for this year from 6.9%. International agencies have also revised the projections down.
Core sectors such as automobiles and manufacturing have witnessed a progressive slowdown because of weakened consumer demand and dearth of investments. The government has announced multiple measures to boost the economy in recent weeks.
Courtesy: scroll.in
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What is Iran’s 10-point plan? Key demands ahead of US talks in Islamabad
Tehran/Islamabad: Iran has outlined a 10-point plan as the basis for upcoming talks with the United States, expected to begin in Islamabad on April 11, according to a statement from the Iranian Supreme National Security Council.
The plan lays out Tehran’s key political, military and economic demands, and is being seen as a framework for negotiations following the recent escalation in the region.
Strait of Hormuz at the centre
A major focus of the plan is the Strait of Hormuz, a critical global shipping route. Iran has proposed “controlled passage through the Strait of Hormuz in coordination with the Iranian armed forces,” which it says would give the country a unique economic and geopolitical position.
The plan also calls for the “establishment of a safe transit protocol” in the Strait that would guarantee Iran’s dominance under an agreed mechanism.
Call to end conflict
Iran has demanded “the necessity of ending the war against all elements of the axis of resistance,” signalling its expectation that hostilities should stop not only in Iran but also involving allied groups in the region.
US troop withdrawal
Another key demand is the “withdrawal of US combat forces from all bases and deployment points in the region,” indicating Tehran’s long-standing position against American military presence in West Asia.
Sanctions relief and compensation
The plan places strong emphasis on economic measures. It calls for “full payment of Iran’s damages according to estimates,” along with “the lifting of all primary and secondary sanctions and resolutions of the Board of Governors and the Security Council.”
It also seeks “the release of all Iranian assets and properties frozen abroad,” which have been a major point of contention for years.
Binding global guarantee
Finally, Iran has demanded that all these terms be formally recognised through “a binding Security Council resolution,” suggesting it wants international legal backing to ensure enforcement.
What this means
The 10-point plan reflects Iran’s broader push for security guarantees, economic relief and regional influence. The upcoming talks in Islamabad are expected to test how far both sides are willing to negotiate on these demands.
