India GDP to Slow Down Marginally

India GDP to Slow Down Marginally, But Remain Strong at 7.5% in 2019 & 2020

India’s economic growth will slow somewhat, but it will remain strong, close to 7.50% in 2019 and 2020, the Organization for Economic Cooperation and Development (OECD) said. India’s gross domestic product (GDP) grew 6.7% in 2017-18. The OECD projects that GDP at market prices will grow 7.3% in 2019 and 7.4% in 2020 from 7.5% in 2018.

GDP to Slow Down

Economic growth will slow down a bit, but it will remain solid, close of 7.5% in 2019 and 2020.  for India in its economic outlook 2018. Stricter financial conditions, higher oil prices, adverse terms of trade, lower growth in partner countries and growing political uncertainties in India and abroad will tend to reduce growth, he said
The Reserve Bank of India expects AF19 growth of 7.4%.

The global credit rating agency Moody’s Investors Service projected that India’s economic growth will moderate to 7.3% in 2019 and 2020, as higher oil prices combined with the depreciation of the rupee and the monetary adjustment will curb domestic demand.

Although higher oil prices and the rupee depreciation put pressure on demand, inflation, the current account and public finances, and structural reforms will help business investment and exports.

These reforms include the new Insolvency and Bankruptcy Code, a more fluid implementation of the Goods and Services Tax (GST), better roads and electricity and bank recapitalization. The pressures on inflation are also increasing due to recent increases in salaries and housing subsidies for public employees. The Reserve Bank’s credibility to target inflation and its projected marginal increases in policy rates will help anchor inflation. Containing the relatively high ratio of public debt to GDP would require controlling contingent liabilities, such as those coming from public companies and banks, he said.

The organization also sought greater subsidy reform to help make social spending more effective and improve the governance of public banks. On the trade front, he noted that the increase in US tariffs on Chinese imports could benefit India’s exports, particularly in the textile sector.

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Management consulting and Strategy consulting

What is the difference between management consulting and strategy consulting?

Management consulting: Sometimes businesses require outside advice and support if they are facing any problems or are in need of out of the box ideas. The professionals who provide this external advice are called management consultants. Management consulting is a generic view of consulting; It is the basket to other small consultancies like HR consultancy, Finance consultancy etc. Organisations not only benefit by gaining external advice by opting for management consulting, but they also gain access to the consultant’s specialised expertise.

Management Consulting

Strategic consulting: Strategic consulting is a practice wherein highly experienced consultants provide firms with advice on their goals and future direction so that they can propose beneficial tactics for efficient growth and increase the value of their business. Strategic consulting is a branch of management consulting, it emphasizes more on corporate strategy. These consultants use expertise, industry wisdom and analysis to help their clients discover strategies that will increase revenue and market share by refining their competitive advantage.

Strategy Consultants

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Management consulting and strategic consulting practices are interconnected, therefore they don’t have any huge differences, but some of them are:

  1. Strategic consulting is usually directed more towards The CEOs and The management, of the larger organisations and the public sectors whereas management consulting is done at the lower levels of the large organisation and at many levels of the small organisations.
  2. Strategy consultants have issue based specialists that concentrate on specific business issues whereas management consultants work on broad business issues.
  3. Management consulting is done in large, medium and small organisations unlike strategic consulting, that is mostly done only in large organisations.

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Important points About Saving Income Tax

Recommended methods of saving taxes under Sec 80C & 80D

  • Make an investment of Rs 1.5 Lakh under Sec 80C to decrease your taxable income
  • Subscribe for a Medical Insurance & claim a deduction.
  • Claim deduction up to Rs 50,000 for residential loan interest under Section 80EE

Investment options under Sec 80C

The most popular tax-saving options available to individuals in India are under Section 80C of the Income Tax Act. Section 80C includes several investments and expenses that can be used to claim deductions. The limit of Section 80C is ? 1.5 lakh in a financial year, which means that you can use this full amount to reduce your taxable income.

Tax Savinngs

Other Tax Saving options beyond Sec 80C

In addition to the deductions available under Section 80C, there are other deductions from Section 80 that can also be claimed to save on income tax. These deductions include health insurance premiums, tax benefits on mortgage loans.

  • Buy medical insurance and claim a deduction of up to Rs. 25,000 (Rs 50,000 for seniors) for the health insurance premium
  • Claim the deduction of up to Rs 50,000 in mortgage loan interest under Section 80EE
  • A mortgage loan would also help you reduce your taxable income, since the principal part of the mortgage loan can be claimed in accordance with Section 80C up to Rs 1.5 lakhs and the interest portion can be claimed as a deduction from income of the property

Know about tax-saving investments for the year

The best time to start planning your tax savings investments is at the beginning of the financial year. Most taxpayers delay until the last quarter of the year and end up making hasty decisions. Instead, if you plan at the beginning of the year, you can make investments that can also help you meet your long-term goals. Investments that save taxes must also be used to create wealth, not just to save taxes.

Use the following notes to plan your tax-saving :

  • Check the tax savings expenses that you are already doing and that you can claim. This includes expenses such as the insurance premium, children’s tuition fees, the contribution of EPF, the repayment of mortgage loans, etc.
  • Deduct this amount of ? 1.5 lakh to calculate how much to invest. It is not necessary to invest the total amount if the expenses cover it.
  • Choose investments to save taxes based on your goals and your profile. ELSS, PPF, NPS funds and fixed deposits are some of the popular options.

In this way, you can find out how much you need to invest to save taxes. It is better to start investing in the first quarter of the financial year so you can distribute the investments throughout the year. Doing this will not be a burden at the end of the year and will also allow you to make informed investment decisions.