:00:00. > :00:00.Now for the latest financial news with Sally Bundock
:00:00. > :00:17.The cost of the nationwide cash withdrawal, India will reveal how
:00:18. > :00:24.much growth has stalled since its controversial
:00:25. > :00:29.5G connectivity - what is its true potential?
:00:30. > :00:37.Rory Cellan Jones has been finding out at the Mobile World Congress in
:00:38. > :00:55.In a minute we'll hear more about a tie-up between two huge
:00:56. > :01:01.But first, could India become the engine which drives
:01:02. > :01:09.The world's second-most populated country has attracted the attention
:01:10. > :01:12.of companies and governments, all keen to make the most
:01:13. > :01:19.In a few hours we'll find out exactly how fast the economy
:01:20. > :01:22.is growing as India gives us their first GDP reading
:01:23. > :01:25.since November's radical demonetisation experiment.
:01:26. > :01:28.Investors will be comparing it to the 7.3% growth seen in the three
:01:29. > :01:31.months from July to September last year, but economists don't expect
:01:32. > :01:34.the figure to be so high this time around.
:01:35. > :01:36.And that's mainly due to the government's surprise move
:01:37. > :01:38.on November the 8th to replace about 86%
:01:39. > :01:46.This has had a huge impact in India, where 9 out of 10 transactions
:01:47. > :01:55.It's one of a number of reforms which are "historic and are bearing
:01:56. > :02:02.fruit," according to a newly released report from
:02:03. > :02:07.the Organisation for Economic Co-operation and Development.
:02:08. > :02:09.One of the other positives that the OECD picks out
:02:10. > :02:12.is the "comprehensive tax reform" that Prime Minister Narendra Modi's
:02:13. > :02:35.We have spoken about this at length, the detail and the chaos caused by
:02:36. > :02:41.that move in November. Today we will find out the impact on the economy?
:02:42. > :02:44.That's right. It is the first real data that will be coming out and
:02:45. > :02:53.that will give some to how that experimental exercise in Pak are the
:02:54. > :03:00.Indian economy. -- impacted the Indian economy. The government put
:03:01. > :03:04.the ban in place in the first week of November. After that, businesses
:03:05. > :03:10.took a hit. Consumer spending was hit. Demand went down. That is why
:03:11. > :03:14.most economists have been really struggling to gauge how much it has
:03:15. > :03:19.really hurt the economy. This data is going to be very, very important
:03:20. > :03:25.in that sense. The BBC's economics editor spoke to India's finance
:03:26. > :03:30.minister and asked him why the government had to take the step, and
:03:31. > :03:41.how it had impacted the economy. (INAUDIBLE). OK, clearly we cannot
:03:42. > :03:46.hear that interview, which is a shame. Maybe we will get that
:03:47. > :03:51.soundbite later on. But just give us a sense of what he said to our
:03:52. > :03:55.economics editor, because it has been very controversial, hasn't it?
:03:56. > :04:00.Because many rural farmers and rural communities have really suffered
:04:01. > :04:04.since the government made that move. That is right. It was a very
:04:05. > :04:09.controversial move, one of the biggest economic reforms in the last
:04:10. > :04:12.60 or 70 years. But the minister defended the decision. He said it
:04:13. > :04:17.was imperative because there was a high level of corruption, and the
:04:18. > :04:22.whole intention was to bring down the amount of untaxed wealth in the
:04:23. > :04:27.economy, the black economy, or black wealth, as it is called in India. It
:04:28. > :04:31.is a huge component of the economy, it is also referred to as the
:04:32. > :04:36.parallel economy. Some people say it is as high as 70% of the country's
:04:37. > :04:41.entire GDP. The Prime Minister says this will clamp down on the number
:04:42. > :04:45.of people who do not pay tax, which is a very small number in India, and
:04:46. > :04:49.the about 1% of the population pays tax. The government says it will
:04:50. > :04:53.help crack down on those people who do not pay tax, and bring them under
:04:54. > :04:58.the law, and strict action can be taken against them. But I think the
:04:59. > :05:01.key question is what happens in the long-term, the medium to long-term.
:05:02. > :05:05.That is where the government is quite confident. Even this latest
:05:06. > :05:08.report that has come out talks about that, that some of the reforms the
:05:09. > :05:13.government has taken are on the right track, and really the impact
:05:14. > :05:18.of this band is going to be short-term, 6-8 months. But can
:05:19. > :05:24.India bounce back after that? That is the big question, and we will the
:05:25. > :05:27.answer today. OK, thank you. You will keep this up-to-date today,
:05:28. > :05:31.because those numbers are coming through in a few hours. As you can
:05:32. > :05:35.tell, this is very much a live programme here at BBC World News,
:05:36. > :05:38.instead not always go to plan. But that interview with the country's
:05:39. > :05:42.finance minister, you will hear that later on today, but you can also
:05:43. > :05:43.catch it online as well, it is on our website.
:05:44. > :05:45.Now more from the Mobile World Congress in Barcelona.
:05:46. > :05:47.As you know, our technology correspondent Rory Cellan-Jones
:05:48. > :05:50.is there, and has been finding out about the potential
:05:51. > :06:01.5G is the term everybody is handy in around here at Mobile World
:06:02. > :06:06.Congress. There is a lot of hype around the next generation of mobile
:06:07. > :06:10.phone networks. Intel has gone as far as to build an experimental 5G
:06:11. > :06:14.network at it stands to illustrate the possible uses of it. There is a
:06:15. > :06:18.driverless car demonstration, the theory being that lots and lots of
:06:19. > :06:22.data will be produced by cars like that. They will need the kind of
:06:23. > :06:26.data capacity that 5G can offer. Your whole home will be connected to
:06:27. > :06:31.the internet, and as I said, there is a lot of hype around it and I
:06:32. > :06:35.have been speaking to Intel's I share evidence about whether that is
:06:36. > :06:38.really justified. For consumers, I would like them to think about what
:06:39. > :06:42.life was like about smartphones -- without smartphones. Start with
:06:43. > :06:47.that. Smartphones allow consumers to talk to each other, to get onto the
:06:48. > :06:52.internet, but all of the other things around the consumers today
:06:53. > :06:55.are not connected. Cars, for example, are not connected. That is
:06:56. > :07:00.going to be on the network, that is going to have live maps, driving
:07:01. > :07:03.around in a smart city. You are also going to have a distribution of
:07:04. > :07:09.media that today is not possible, in terms of video. All of those things
:07:10. > :07:13.are coming. We were promised all of that with four G. Four G is still
:07:14. > :07:19.rolling out for people. What is the difference between four G and 5G. Is
:07:20. > :07:23.it simply speed? It is speed, and it is also getting the network ready
:07:24. > :07:28.for the other machines coming onto the network. 4G is really about data
:07:29. > :07:33.communication onto the internet. It doesn't allow robotics, it doesn't
:07:34. > :07:37.allow autonomous driving, like if the majority of cars are autonomous.
:07:38. > :07:41.It doesn't deliver all of that bandwidth yet. 5G gets us ready for
:07:42. > :07:45.that next step. And is it actually going to come as quickly as some
:07:46. > :07:49.people seem to think? Aren't they going to be delays? Aren't they
:07:50. > :07:53.going to be arguments over standards, over what the right
:07:54. > :07:57.technology actually is? Yes, it is. We are going to have delays. We are
:07:58. > :08:02.going to arguments and physics issues. You know what? It is going
:08:03. > :08:06.to come fast. In 2020 you'll start seeing commercial deployments. Yes,
:08:07. > :08:10.there will be delays. It is never as fast as the wireless people say, but
:08:11. > :08:12.it will be much quicker than it took the 4G.
:08:13. > :08:16.Some of you may not even have three G yet, depending on where you are
:08:17. > :08:18.watching us around the world. That's how much Saudi Arabia's state
:08:19. > :08:22.oil firm is investing in an oil refinery set up by Malaysia's state
:08:23. > :08:24.oil company Petronas. The deal comes as the Saudi King
:08:25. > :08:27.Salman arrived in Kuala Lumpur to kick off a multi-nation tour
:08:28. > :08:30.aimed at boosting economic Sharanjit Leyl joins us
:08:31. > :08:42.from our Asia Business Hub. Quite exciting, isn't it? Two
:08:43. > :08:46.powerhouses coming together, big investments by Saudi Arabia into
:08:47. > :08:52.Malaysia. That is right, so big that it makes Saudi Arabia's state oil
:08:53. > :08:57.firm the single biggest investor into Malaysia. Of course, this deal
:08:58. > :09:03.is between them and the Malaysian state-owned energy company Petronas.
:09:04. > :09:06.They are investing in this huge refinery project in southern
:09:07. > :09:10.Malaysia. What is interesting is that this marks a dramatic reversal
:09:11. > :09:17.from earlier this year when we heard from industry sources that the deal
:09:18. > :09:24.was off, that had planned to pull out of this deal at the time. --
:09:25. > :09:27.Aramco had planned. But Petronas and Aramco executives are now scheduled
:09:28. > :09:31.to sign the agreement today, and they are saying that Petronas may
:09:32. > :09:36.have had to make some concessions in order to make this huge deal happen.
:09:37. > :09:39.Thank you, good to see you. Let's show you the financial markets,
:09:40. > :09:43.because once again they are making the lines. In the United States, a
:09:44. > :09:46.record close for the Dow Jones industrial average for the 12th day
:09:47. > :09:50.in a row. The biggest winning streak. And like 30 years. Asia has
:09:51. > :09:56.a mixed response to that at the moment. But we can show you that the
:09:57. > :09:59.US is all in anticipation of Donald Trump's speech later today, and his
:10:00. > :10:14.ambitions and plans for the world's guest economy. I will see you soon.
:10:15. > :10:18.A new wave of industrial action in jails in England and Wales will
:10:19. > :10:19.begin tomorrow.