Posted on December 29, 2019

The Chennai Global economic summit 2019 and Sixth world Tamil conference was held on 28th December 2019 at Hotel Le Royal Meridien, Chennai, India. At the event, Dr. R. Seetharaman, CEO of Doha Bank spoke on “Global economic situation – Opportunities and challenges." He said “According to IMF Oct 2019, Global growth is forecast at 3.0 percent in 2019, picking up to 3.4 percent in 2020 respectively. For advanced economies, growth is projected at 1.7 percent in 2019 and 1.7 percent in 2020 respectively. The emerging market and developing economy group is expected to grow at 3.9 percent in 2019, rising to 4.6 percent in 2020. 

The  Global expansion is a fragile one, with growth weakening in the US, China , the euro area and Japan offset by a handful of smaller EMs -Brazil, India, and South Africa – rebounding from tepid growth in 2019. 2020 an year of consolidation. The macro-environment is looking up in 2020, including the phase one U.S.-China trade deal, improving economic data, and the effects of global monetary policy easing across the globe. The looming recession risk is much lower at the end of 2019 than mid-year, But, any breakdown in the U.S.-China trade talks could change everything. Recession fears were at their highest levels in mid-2019, when the yield curve inverted for the first time since 2008. We are likely to see some stabilization next year as the impact of monetary policy easing around the world is felt. We saw a number of dovish surprises from central banks globally in 2019. This should add some support to growth generally. Oil prices will likely be boosted by the higher cuts in supply committed to by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) and the envisaged rebound in global growth, particularly in EM.

Global economy will witness 2 [].jpgIndia’s economy grew at its slowest pace in more than six years in the July-September period, down to 4.5 per cent from 7.0 per cent a year ago. India is expected to take steps to reverse the economic slowdown of an economy that has been one of the engines of global growth. The key happening segments in India include an attractive investment destination, e- commerce market, largest road network, food production, domestic air growth and largest startup eco-system. The key expectations from India by 2025 include 200km National Highway road network, $3 Trillion consumer market, 550M Middleclass population, 100 Smart cities and 175GW Renewable energy to be generated. The key enablers for India’s growth include improving ease of business, open FDI policies, streamlined tax regime, robust and resilient financial markets and digital first economy. On the whole India is heading in the right direction.

The bilateral trade between Qatar and India during in 2018-19 is above $12bn. Qatar’s major exports to India include Petrochemicals, LNG, fertilizers, Sulphur and Iron Pyrites. Qatar’s major imports from India include accessories, manmade yarn, fabrics, made-ups, cotton yarn, transport equipment, machinery and instruments, manufacture of metals, ores and minerals etc. Qatar Petroleum has announced further increase in the capacity of Qatar’s LNG expansion project, by adding a fourth liquefaction train, to raise the country's liquefied natural gas capacity to 126 million by 2027. Qatar and India can look forward to enhance their collaborations in LNG segment.

Dr. R. Seetharaman gave insight on technology developments. He said “The Fourth Industrial Revolution can be described as a range of new technologies that are fusing the physical, digital and biological worlds, and impacting all disciplines, economies and industries, in terms of the effects of digitization and AI on the economy. The Fourth Industrial Revolution is marked by emerging technology breakthroughs in a number of fields, including robotics, artificial intelligence, The Internet of Things, 3D printing which will impact the digital eco system.  Technology could be the major differentiator between companies operating in the same sector and having access to similar customer information.  The Indian government is working to establish a national framework to support the wider use cases of block chain technology. The Indian government has already built the Distributed Centre of Excellence in Block chain Technology, a project that develops and conducts research on block chain technologies and their use cases.”

Dr. R. Seetharaman highlighted on Tamil Nadu economy. He said “ Tamil Nadu, during 2018-19, recorded an economic growth rate of 8.17%, despite a deficit northeast monsoon and cyclone Gaja that devastated parts of the State. For the second year in succession, the primary sector did far better than the secondary and services sectors. It was close to a double digit growth — 9.9% The secondary and services sectors registered growth rates of 6.59% and 8.24% respectively. Tamil Nadu has a diversified manufacturing sector and features among the leading states in several industries like automobiles & components, engineering, pharma, garments & textile products, leather products, chemicals & plastics, etc. Sixteen US-based companies have committed to invest a total sum of ₹2,780 crore in Tamil Nadu, and provide job opportunities for nearly 20,000 people. The companies include Aquil Systems, Scitus Pharma, Nurray Chemicals, Novitium Labs, Jogo Health, ST LNG, Saram 4, Emerson, Aspire Consulting, Revature-LLC and Zillion Technologies.”