QNB Group has published its India Economic Insight 2014. The report examined recent developments and the outlook for the Indian economy and the potentially positive impact of the Premier Narendra Modi administration’s reform agenda.
According to the report, the implementation of Modi’s reform agenda is expected to unleash India’s growth potential; real GDP growth is forecast to accelerate to 6.3 percent in 2015/16 and 6.8 percent in 2016/17 as reforms start to pay dividends
The Modi administration has identified a number of priority areas for reforms including phasing out food and energy subsidies; easing land acquisition laws; reviving the power sector; introducing a uniform federal sales tax and reforming the labor market.
The majority of the reforms are projected to be implemented during the 2015/16 budget, thus starting to pay dividends over the next two years by increasing investments in the economy.
CPI inflation is forecast to reach the target set by the Reserve Bank of India (RBI) of 6.0 percent by January 2016 on continued tight monetary policy and favorable external conditions.
Labor market reforms are expected to reduce inflation by increasing labor force participation and lowering wage inflationary pressures.
Falling international oil prices and a good monsoon season are likely to moderate energy and food price inflation (comprising half of the CPI basket) in the short term.
The current account deficit is projected to decline to 1.1 percent of GDP by 2016/17 on further rupee depreciation and tighter fiscal policy.
The implementation of reforms is expected to attract additional foreign investments, implying that the financial account is likely to enjoy a healthy surplus.
The accumulation of international reserves is projected to rise to 7.9 months of import cover by end-March 2017, supported by smaller current account deficits and larger net capital inflows.
Double-digit growth in assets, loans and deposits is expected to continue at least until 2016/17, reflecting further banking penetration, higher economic activity and reduced corporate deleveraging.
Lending growth is expected to rebound and NPLs to fall in 2016/17 as structural reforms begin to materialize and banks’ balance sheets are cleaned up
Deposit are expected to continue growing robustly, despite the slowdown in inflation driven by a high savings rate and the government’s financial inclusion initiative
Other recent QNB Economic Insight reports include China, Indonesia, Jordan, Kingdom of Saudi Arabia, Kuwait, Oman, Qatar and UAE are available on the QNB Group website.
QNB Group operates in more than 26 countries in Asia, Europe, the Middle East and North Africa and its economic reports leverage its knowledge of these markets to provided added value for its clients and counterparties.
India labor market reforms likely to reduce inflation
India labor market reforms likely to reduce inflation
Closing Bell: Saudi main index closes in green at 11,155
RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Wednesday, as it gained 57.39 points — or 0.52 percent — to close at 11,155.45.
The total trading turnover of the benchmark index stood at SR3.76 billion ($1 billion), with 151 of the listed stocks advancing and 102 declining.
The Kingdom’s parallel market Nomu also gained 74.09 points or 0.31 percent to close at 23,622.65.
The MSCI Tadawul Index edged up by 0.52 percent to 1,503.06.
The best-performing stock on the main market was Saudi Enaya Cooperative Insurance Co., as its share price increased by 8.61 percent to SR8.70.
The share price of Bupa Arabia for Cooperative Insurance Co. rose by 8.01 percent to SR179.30.
Retal Urban Development Co. also saw its stock price climb by 5.95 percent to SR13.
Conversely, the share price of National Medical Care Co. declined by 9.99 percent to SR141.50.
On the announcements front, National Gas and Industrialization Co. reported a net profit of SR249.1 million in 2025, representing a 0.16 percent rise compared to the previous year.
In a Tadawul statement, the company attributed the marginal rise in net profit to a rise in gas and empty cylinders sales, as well as an increase in revenues from scrap sales.
Total shareholders’ equity, with no minority interest, amounted to SR1.96 billion by the end of 2025, compared to SR1.90 billion in the previous year.
The company’s share price declined by 0.4 percent to SR87.40.
Sure Global Tech Co. announced that its board of directors approved the establishment of a wholly owned limited liability company headquartered in Riyadh.
The newly established company will specialize in developing artificial intelligence solutions, emerging technologies, big data analytics, and intelligent systems, after obtaining all required approvals and licenses from the relevant authorities.
In a Tadawul statement, the company said that the latest development aligns with the firm’s strategy to expand into promising technology sectors and strengthen its investments in digital transformation and artificial intelligence.
The share price of Sure Global Tech Co. edged up by 1.4 percent to SR57.80.
