INDIA'S GDP GROWTH SLOWS TO 11-YEAR LOW OF 4.2 PER CENT IN 2019-20

India's quarterly growth rate plummeted to its lowest in the current series

at 3.1 per cent in the January-March period of 2019-20, led by a sharp

contraction in the manufacturing and construction sectors, even as fresh

data provided clear indications of a further slide in estimates during the

April-June quarter.

The March quarter estimates dragged the overall GDP growth rate for 2019-20

to a 11-year low of 4.2 per cent, the provisional estimate released by

National Statistical Office on Friday showed. The period in question

includes only one week of lockdown to slow the spread of Covid-19 pandemic

in March.

The 4.2% growth rate is not only a far cry from the 8.5% growth that the

government expected in July 2019 when it presented the Budget for that year

but also significantly lower than the 5% that the Second Advance Estimates

suggested at the end of February earlier this year.

This is, of course, the growth rate in real GDP. A similar fall can be seen

in the trajectory of the nominal GDP, which is the observed variable. Real

GDP is arrived at by subtracting the inflation level from nominal GDP

growth.

At the time of the 2019-20 Budget presentation in July, nominal GDP was

expected to grow by 12%-12.5%. By the end of it, provisional estimates peg

it at just 7.2%. In 2018-19, the nominal GDP grew by 11%.

This sharp deceleration in nominal GDP growth, more than anything else,

shows the continued weakening of India's growth momentum even before it was

hit by the Covid-19 induced lockdown in the last week of March.

A sharp fall in nominal GDP means the government does not get the revenues

it had hoped for and, as such, it can't spend as much as it wanted to.

Secondly, the substantial deceleration in nominal GDP growth reflects poorly

on the government's fiscal marksmanship. In other words, it shows that the

government was not able to assess the magnitude of economic growth

deceleration that was underway. Poor fiscal marksmanship, in turn, leads to

inaccurate policy making because a government could end up making policies

for an economy that doesn't actually exist on the ground.

COVID-19 CRISIS: OVER TO STATES AS NEXT PHASE OF LOCKDOWN SET TO KICK IN

Two days before lockdown 4.0 comes to a close, the Centre and states engaged

in hectic parleys to chalk out the road ahead. After taking chief ministers'

views on the contours of the next lockdown, Union Home Minister Amit Shah

met PM Narendra Modi on Friday before finalising the guidelines.

States are likely to have a bigger role than the Centre in deciding how much

to open from June 1.

After a first of its kind meeting between Shah and CMs, officials said from

now on, lockdown measures would be reviewed every fortnight and restrictions

would largely be decided by states.

Even as there's no consensus among states on the shape of the next lockdown,

many favoured extension of curbs to contain the spread of Covid-19 cases.

Kerala, Jharkhand and Haryana are among those concerned that economic

reasons outweighing health considerations could sharply increase the number

of cases.

Therefore, they want the lockdown extended. ''Considering the cases are

going up, the recommendations are not in favour of lifting of the

lockdown,'' a Kerala govt official said.

However, others such as West Bengal, Karnataka, Punjab, and Goa supported

further relaxations to spur economic activity. After his meeting with Shah,

Goa CM Pramod Sawant said he felt the lockdown may be extended for 15 more

days. "However, we want some more relaxations like opening of restaurants

with social distancing at 50 per cent capacity," he said.

Mamata Banerjee approved opening religious places from June 1 with

restrictions. "Considering the sorry state of affairs in the country, let us

come forward and pray together," Banerjee said on Friday.

Karnataka, too, has decided to open the doors to religious places from June

1. Pujas can be offered through an app which would soon start taking

bookings.

Punjab CM Amarinder Singh told a group of industrialists that his govt wants

to ensure 100 per cent operationalization over the next few days. He said 78

per cent of the industry had resumed operations, and 68 per cent of the

migrant labour has opted to stay back in Punjab.

WILL SET GLOBAL EXAMPLE FOR ECONOMIC REVIVAL: PM MODI IN LETTER TO NATION

Acknowledging the "tremendous suffering" faced by the poor and vulnerable

during the lockdown, Prime Minister Narendra Modi Friday reiterated the need

"to take care to ensure that inconveniences that we are facing do not turn

into disasters".

Advising citizens to follow rules and guidelines with patience, he said: "We

must always remember that the present and future of 130 crore will never be

dictated by an adversity."

In a letter to the nation that also marked the first year of his second

term, Modi wrote: "In a crisis of this magnitude, it can certainly not be

claimed that no one suffered any inconvenience or discomfort. Our labourers,

migrant workers, artisans and craftsmen in small scale industries, hawkers

and such fellow countrymen have undergone tremendous suffering."

That's why, Modi said, it was all the more important that "every Indian.

follow all rules and guidelines."

Applauding the "sheer confidence," "resilience" and patience shown by people

which has ensured that India is "in a better state than many other

countries," Modi said: "This is a long battle but we have started traversing

on the path of victory and victory is our collective resolve."

Referring to the impact of the pandemic on the economy, the Prime Minister

said there was a "firm belief" that just as it has done with the fight

against Covid, India will also "set an example in economic revival." Through

their strength, Modi said, "130 crore Indians can not only surprise the

world but also inspire it."

CHINA TOO REJECTS US MEDIATION OFFER

After India, China on Friday too rejected US President Donald Trump's offer

to "mediate" between India and China to end their border standoff, saying

the two countries are capable of resolving their differences through

dialogue and did not require the help of a "third party".

In an embarrassment to the US President, sources here denied his claims of

having spoken to Prime Minister Narendra Modi on India's military standoff

with China in eastern Ladakh. In fact, they underlined that no conversation

has taken place between the two leaders since April 4 when they spoke on

export of hydroxychloroquine.

The Ministry of External Affairs (MEA) has been stressing on bilateralism to

resolve the dispute even as the US, first by senior diplomat Alice Wells and

later Trump, sought to triangulate it.

For the first time, the Chinese Foreign Office also spoke against the US

offer for mediation. "We are capable of properly resolving the issues

between us through dialogue and consultation. We do not need the

intervention of the third party," its spokesperson said at a media briefing

here. "We have existing border-related mechanisms and communication channels

between China and India," he added.

The clarification from both India and China was prompt after Trump said in

response to question that he had spoken to PM Modi and went on to say that

the Indian PM was not in a "good mood" over the "big conflict" between India

and China.

A day earlier, the MEA had said India was directly in touch with China

through established mechanisms and diplomatic contacts to resolve the border

stand-off.

COVID-19 DASHBOARD - (Nos. IN INDIA / Nos. WORLDWIDE)

(Indian data from covid19india / and World Data from

worldometers.info/coronavirus/ )

Total Cases 1,73,480 (+8,104) / 60,31,023 (+1,25,608)

Total Deaths 4,980 (+269) / 3,66,812 (+4,788)

Total Recovered 82,627 (+11,707) / 26,59,270 (+79,579)

Active Cases 85,873 (-3,872) / 30,04,941 (+41,241)

Serious / Critical Cases - N.A. / 53,734 (-238)

Top impacted nations so far: (And some of India's Neighbours)

Country, Total Cases / Total Deaths / Recovered Cases / Active

Cases

1 USA 17,93,530 / 1,04,542 /

5,19,569 / 11,69,419

2 Brazil 4,68,338 / 27,944 /

1,93,181 / 2,47,213

3 Russia 3,87,623 / 4,374 /

1,59,257 / 2,23,992

4 Spain 2,85,644 / 27,121 /

1,96,958 / 61,565

5 UK 2,71,222 / 38,161 / N/A

/ N/A

6 Italy 2,32,248 / 33,229 /

1,52,844 / 46,175

7 France 1,86,835 / 28,714 / 67,803

/ 90,318

8 Germany 1,83,019 / 8,594 /

1,64,100 / 10,325

9 India 1,73,491 / 4,980 /

82,627 / 85,884

10 Turkey 1,62,120 / 4,489 /

1,25,963 / 31,668

11 Peru 1,48,285 / 4,230 /

62,791 / 81,264

18 Pakistan 64,028 / 1,317 / 22,305

/ 40,406

22 Bangladesh 42,844 / 582 / 9,015

/ 33,247

98 Sri Lanka 1,558 / 10 / 754

/ 794

Top 17 impacted Indian States so far: (Total No. of Confirmed case / No. Of

Deaths)

State / Confirmed Cases / Active Case / Recovered /

Deceased

Maharashtra 62,228 / 33,133 / 26,997 /

2,098

Tamil Nadu 20,246 / 8,776 / 11,313 /

157

Delhi 17,386 / 9,142 / 7,846 / 398

Gujarat 15,944 / 6,353 / 8,611 / 980

Rajasthan 8,365 / 2,937 / 5,244 /

184

Madhya Pradesh 7,645 / 3,042 / 4,269

/ 334

Uttar Pradesh 7,445 / 2,834 / 4,410 /

201

West Bengal 4,813 / 2,736 / 1,775 /

302

Bihar 3,359 / 2,135 / 1,209 / 15

Andhra Pradesh 3,330 / 1,036 / 2,234

/ 60

Karnataka 2,781 / 1,837 / 894 /

48

Telangana 2,425 / 973 / 1,381 /

71

Punjab 2,197 / 206 / 1,949 / 42

Jammu and Kashmir 2,164 / 1,261 / 875 /

28

Odisha 1,723 / 737 / 977 / 9

Haryana 1,721 / 762 / 940 /

19

Kerala 1,151 / 577 / 565 / 9

INTERNATIONAL AFFAIRS

======================

TRUMP SAYS US TERMINATING RELATIONSHIP WITH WHO

Accusing the World Health Organisation of being "totally controlled" by

China, US President Donald Trump late Friday announced the country will

permanently "terminate" its relationship with the organisation and will

redirect funds from the WHO to other organisations.

"China has total control over the WHO despite only paying $40 million a year

compared to what the US has been paying which is approx $450 million a year.

But the WHO has failed to make requested and needed reforms and so we will

be terminating our relationship with the WHO," he said.

The US President also said he is directing his administration to begin the

process of eliminating policy exemptions that give Hong Kong different and

special treatment, citing the Chinese parliament's advancement of national

security legislation for Hong Kong, which democracy activists and Western

countries fear could erode the city's freedoms.

"We will be revising the State Department's travel advisory for Hong Kong to

reflect the increased danger of surveillance and punishment by Chinese state

security apparatus," he added.

STAY OUT OF HK AFFAIRS, CHINA TELLS NATIONS

China has lodged diplomatic protests with the US, the UK, Canada and

Australia for "interfering" in its internal matters by criticising its new

security law for Hong Kong and also warned America of countermeasures if it

did not stop the "frivolous" political manipulation over the issue.

China's parliament on Thursday overwhelmingly approved a new controversial

security law for Hong Kong, a move that critics say threatens the

fundamental political freedoms and civil liberties in the semi-autonomous

territory, also a major global trading hub.

The security legislation bans secession, subversion of state power,

terrorism, foreign intervention and allows mainland China's state security

agencies to operate in Hong Kong. "China's decision to impose the new

national security law on Hong Kong lies in direct conflict with its

international obligations under the principles of the legally binding,

UN-registered Sino-British Joint Declaration," the joint statement released

by the four countries said.

China's Foreign Ministry spokesman, Zhao Lijian told a media briefing on

Friday that China has lodged diplomatic protests with the four countries.

THE REST

========

TREMORS IN DELHI; SEVENTH SINCE APRIL 12

Tremors were felt in Delhi on Friday evening after an earthquake of 4.5

magnitude struck near Rohtak in Haryana, which is about 65 kilometres from

the national capital.

According to the National Centre for Seismology (NCS), the earthquake

occurred at 9.08pm with a depth of 5 kilometres. This was the seventh

earthquake to have been felt in the national capital since April 12 this

year, as per data from the NCS.

Friday's earthquake had a higher magnitude than those recorded previously

since April 12 in and around Delhi, with a range of between 3.5 and 2.

Delhi lies on Zone IV of the seismic map of India. As per the NCS, Zones IV

and V have high probability of earthquakes that can be destructive or worse.

RAILWAYS' TREATMENT OF MIGRANTS BORDERS ON BARBARISM: NHRC

Saying that the treatment of migrant workers "by the Railway authorities

borders around barbarism", the National Human Rights Commission (NHRC) has

issued notices to the Railway Board chairman, Union home secretary and chief

secretaries of Bihar and Gujarat.

It has asked them to submit a report, within four weeks, on the steps taken

to ensure basic facilities to migrants.

The NHRC, which issued the notices on Thursday, said it was taking suo motu

cognizance of media reports on trains taking days to reach their destination

and how "many migrant labourers lost (their) lives during the journey by

train due to longer duration and no arrangements for drinking water and food

etc."

FORMER CHHATTISGARH CM AJIT JOGI DIES AT 74; THREE-DAY MOURNING IN STATE

Ajit Jogi, an IAS officer-turned- politician who went on to become the first

chief minister of Chhattisgarh in 2000, died on Friday at a city hospital

where he was being treated for the last 20 days, doctors said.

Jogi (74), who had slipped into coma, suffered a cardiac arrest in the

afternoon and could not be revived, they said.

He is survived by his wife Renu Jogi, the MLA from Kota constituency, and

son Amit, a former MLA.

Chief Minister Bhupesh Baghel declared three-day mourning in the state as a

mark of respect to the departed leader, whose last rites will take place on

Saturday at his native place Gaurela.

IN DELHI, COVID HOTEL-HOSPITALS FOR TREATMENT, ISOLATION

The Delhi government on Friday roped in hotels for treatment as well as

isolation of Covid-19 patients. For treatment, the government has tied up

with five hotels that will be converted into "extended Covid hospitals",

augmenting the bed capacity by 1,000 beds.

"Beds in government hospitals are lying vacant, even ICUs and ventilators

are available. But people are opting for admission to private hospitals. The

government's responsibility is to provide treatment to all. But since the

private hospitals are running full, it's a good decision to attach hotels

for treatment of coronavirus patients. Anticipating a surge, we have started

preparation for the coming days. The percentage of positive patients is also

increasing, which is a red alert for us," said Dr Arun Gupta, president of

the Delhi Medical Council.

DGCA SAYS LOCUST SWARMS POSE THREAT TO AIRCRAFT

As fast-spreading locust swarms enter urban areas of India, Aviation

regulator DGCA Friday issued guidelines for stakeholders like pilots and

engineers on how to deal with the issue as they pose a threat to aircraft in

the critical landing and takeoff phase of a flight.

India is battling the worst desert locust outbreak in decades eating their

way across vast swath of crops in Rajasthan, now invading Punjab, Gujarat,

Maharashtra and Madhya Pradesh.

"Though an individual locust is small in size, impact of large numbers on

the windshield is known to have impacted the pilot forward vision. This is a

grave concern during the landing, taxi and takeoff phase," the DGCA circular

said.

"THIS TIME, INDIA'S WALLET POWER WILL BE MORE EFFECTIVE AGAINST CHINA"

Educator and innovator Sonam Wangchuk has created a buzz online after his

message to boycott Chinese goods went going viral amid the escalating

tension at LAC in Ladakh. In an appeal, he urged the countrymen to snub

products made in China and uninstall Chinese apps.

Wangchuk, who inspired Phunsukh Wangdu's character essayed by Aamir Khan in

the film 3 Idiots, recently released a YouTube video titled 'China Ko Jawaab

Sena Degi Bullet Se, Naagrik Dengey Wallet Se', explaining how people can

help the country in this situation.

With a message to give up 'softwares in a week' and 'hardwares in a year',

Wangchuk, sitting against the picturesque views of the Himalayas and river

Sindhu, explains in the video how just beyond the mountains, thousands of

soldiers are trying to protect the country.

"Is baar Bharat ki bullet power se zyada wallet power kaam aaegi (This time,

India's wallet power rather than bullet power will be more effective),"

Wangchuk says in the video.

Stressing that if Indians, including the NRIs, decide to boycott Chinese

goods, it would have a huge impact on the Chinese economy and would irk its

people, leading to a possible toppling of their government. Asserting that

he is not against the people of China but the government, Wangchuk said

there must be a change regarding the functioning of Chinese authorities.

ASTROLOGER BEJAN DARUWALLA PASSES AWAY

Renowned astrologer Bejan Daruwalla died at a private hospital here on

Friday evening, his family said. Daruwalla, known for his newspaper columns

on astrology, was 90.

His son Nastur Daruwalla denied the speculation on social media that his

father had contracted coronavirus. Daruwalla was suffering from only

pneumonia, he said.

INDICATORS

Sensex 32,424 (+223), Nifty 9,580 (+90), Trading Value NSE ,(Rs.crores)

83,496

Nasdaq 9,490 (+121) Dow 25,383 (-18), S&P 3,044 (+15)

US$-Rs. 75.11 GBP-Rs. 92.62, Euro-Rs. 83.39, UAE Dhm-Rs.20.44, Can$-Rs.

54.52, Aus$- Rs. 49.94

GBP 0.81 /US$, Euro 0.90 /US$, Jap.Yen 107.49 /US$, Aus$ 1.50 /US$, Sing

1.41 /US$, Bang Taka 83.22 /US$, Can$ 1.37 /US$, Mal Ring 4.34 /US$,

Pak Re 161.45 /US$, Phil Peso 50.49 /US$, Russian Rouble 70.48 /US$, NZ$

1.61 /US$, Thai Baht 31.78 /US$, Ukraine Hryvnia 26.57 /US$, Norway NOK 9.73

/US$

Bitcoin - USD 9,381

Dollar Index 98.25 Brent Crude 35.33 BDI 504

Gold world Spot Price USD/aoz 1,729 India (Rs. per gm 24k/22k) 4,695 / 4,595

Silver (Rs. Per KG) 47,910

THOUGHT FOR THE DAY

Not what we have, but what we use; Not what we see, but what we choose.. -

Joseph Fort Newton

OFF TRACK

A jockey is in the parade ring discussing race tactics with the horse's

trainer. The trainer tells the jockey that this is the worst horse he has

ever seen. It has had 23 races and finished last in every one of them. If it

doesn't win today the milkman will be using it for deliveries in the

morning.

The jockey mounts up and takes the horse down to the start. The race begins

and the horse is immediately 10 lengths behind the pack! So the jockey gives

the horse a sharp thwap on the shoulder. Nothing.

He then gives him a series of strikes on the rump. Nothing.

He then gives him two wallops right on the hindquarters.

The horse comes to a sudden stop, turns to the jockey and says "Give it a

rest with that whip, will ya, buddy? I have to be up at four in the morning

to deliver milk"!