Arup Roychoudhury

All stories by Arup Roychoudhury

Better placed than peers to fight inflation: FinMin

Better placed than peers to fight inflation: FinMin

Rediff.com13 May 2022

India's inflation trajectory in the coming months will be influenced more by the geo-political situation due to the war in Europe and its impact on supply chains and commodity prices. However, the country is better placed than most to "weather the storm" and achieve growth of close to 8 per cent in the current fiscal year, the finance ministry said in its latest monthly economic report on Thursday. "Through the channel of imports, elevated global crude and edible oil prices now have a significant impact on India's inflation outlook. "Government measures to keep the prices of these commodities in check, along with the recent hike in policy rates by the RBI, are expected to temper inflationary pressures in the economy," the monthly economic report for April, drafted by the finance ministry's economic division, said.

'Corporates will have to absorb inflation impact'

'Corporates will have to absorb inflation impact'

Rediff.com11 May 2022

'Top lines will grow, volume growth will be there, but margins might also be impacted.'

IMF slashes India's FY23 GDP growth forecast to 8.2%

IMF slashes India's FY23 GDP growth forecast to 8.2%

Rediff.com20 Apr 2022

The International Monetary Fund (IMF), in its latest World Economic Outlook report, has slashed its forecast for India's FY23 gross domestic product growth to 8.2 per cent from 9 per cent, saying that higher commodity prices will weigh on private consumption and investment. This was one of the steepest cuts for emerging economies compared to the IMF's January WEO forecasts. Saying that global economic prospects have worsened significantly due to commodity price volatility and disruption of supply chains caused by the war in Europe, IMF cut its global growth outlook for calendar year 2022 to 3.6 per cent from 4.4 per cent, and said both Russia and Ukraine could experience large GDP contractions.

Ukraine war poses upside risk to inflation: FinMin

Ukraine war poses upside risk to inflation: FinMin

Rediff.com16 Mar 2022

The finance ministry said on Tuesday that high energy and commodity prices due to the Russian invasion of Ukraine may provide an upside risk to inflation and continued vigil is required. "Going forward, elevated energy and commodity prices may act as an upside risk to the inflation outlook in the near-medium term. "Given the inherently unsustainable nature of high prices, international commodity prices are expected to level off early with an increase in supplies outside the crisis zone," the department of economic affairs said in its latest monthly economic report for February.

Meet FM's A-team behind Budget 2022

Meet FM's A-team behind Budget 2022

Rediff.com31 Jan 2022

Finance Minister Nirmala Sitharaman will present the much-awaited 2022-23 Union Budget on February 1. While there has been strong recovery in some sectors, touch services like hospitality, tourism and leisure continue to suffer after two Covid-19 waves. Household savings have been hit due to increased spending on health care. Consumption has still not reached pre-pandemic levels.

Budget 2022: Phasing out of some tax exemptions likely

Budget 2022: Phasing out of some tax exemptions likely

Rediff.com27 Jan 2022

The Centre is considering a gradual phasing out of certain direct tax exemptions meant for corporate and personal tax payers. This is among the tax proposals being discussed for the upcoming Union Budget 2022-23. A top policymaker said that according to the government's internal assessment, the percentage of corporates and individuals shifting to the new exemption-less tax regime has been very encouraging, and the Budget-makers expect many more to make the switch in the coming years. The person also said the finance ministry is exploring the option of rationalising the capital gains tax rates.

'Huge impact on livelihoods over two years'

'Huge impact on livelihoods over two years'

Rediff.com18 Jan 2022

'It's important to find that balance between lives and livelihoods, make sure that we protect lives while ensuring that the economic recovery is back on track.'

Budget: Worst-hit sectors may get credit guarantee breather

Budget: Worst-hit sectors may get credit guarantee breather

Rediff.com14 Jan 2022

According to highly placed sources, the finance ministry is likely to extend ECLGS and other loan guarantee schemes for micro, small and medium enterprises (MSMEs), hospitality and tourism sector, and the health infrastructure beyond March 31, Business Standard has learnt. This is likely to be announced by Finance Minister Nirmala Sitharaman as part of her Budget speech on February 1.

Budget 2022: Centre may not target sharp fiscal correction

Budget 2022: Centre may not target sharp fiscal correction

Rediff.com28 Dec 2021

While presenting her 2021-22 Union Budget, Finance Minister Nirmala Sitharaman had set a fiscal deficit target of 6.8 per cent of nominal gross domestic product (GDP) against the 2020-21 Revised Estimate of 9.5 per cent. The fiscal correction in the upcoming 2022-23 Union Budget is unlikely to be that steep. Even as discussions among top Budget-makers are ongoing, the fiscal deficit target for 2022-23 may likely be in the range of 6.5-6.8 per cent.

GST Council likely to meet early Jan; may discuss rate rationalisation

GST Council likely to meet early Jan; may discuss rate rationalisation

Rediff.com20 Dec 2021

The Centre is looking to convene a meeting of the all-powerful Goods and Service Tax Council in early January. The meeting is likely to focus on rectifying the inverted duty structure for a few more items and will also serve as a platform for pre-Budget discussions between Union Finance Minister Nirmala Sitharaman and state finance ministers, Business Standard has learnt. "The current Winter Session of Parliament ends on December 23, followed by the Christmas-New Year period. "After that we would like to have a meeting of the GST Council, depending on whether there can be a quorum," a top government official said.

After 40% rise in Q1, capital expenditure dropped in July

After 40% rise in Q1, capital expenditure dropped in July

Rediff.com8 Sep 2020

Almost all infrastructure ministries continued spending on capex throughout the lockdown, even as the Centre tried to maintain some semblance of economic normalcy.

Q1 GDP data: Employment-creating sectors hit the most

Q1 GDP data: Employment-creating sectors hit the most

Rediff.com2 Sep 2020

The sudden stop in economic activity led to a sharp decline in employment-intensive sectors like construction, manufacturing and trade, hotels, transport etc.

FinMin unlikely to take Covid-hit FY21 as a base for FY22 Budget

FinMin unlikely to take Covid-hit FY21 as a base for FY22 Budget

Rediff.com14 Aug 2020

Instead, 2019-20 could be the base from which the Budget estimates for next year are calculated.

Revealed: Modi's plans for the economy

Revealed: Modi's plans for the economy

Rediff.com3 Aug 2020

he government is examining a plan of bank recapitalisation and considering an urban version of MNREGS.

As COVID decimates tax revenues, govt eyes higher RBI surplus this year

As COVID decimates tax revenues, govt eyes higher RBI surplus this year

Rediff.com8 Jul 2020

The thinking at the Centre is that since the RBI has ramped up purchases of government bonds, the interest earned on them will be transferred to the exchequer as dividend.

'Why are even our sewing needles made in China?'

'Why are even our sewing needles made in China?'

Rediff.com8 Jul 2020

'We are not able to manufacture even low-end products as cheaply as China.' 'We are not buying Chinese goods today out of any love for China.'

Govt may get RBI to monetise fiscal deficit

Govt may get RBI to monetise fiscal deficit

Rediff.com6 Jul 2020

So far, the RBI has been 'indirectly monetising' by increasing the purchases of G-Secs in the secondary market through open-market operations.

Govt readies plan to boost demand with infra spend, cash transfer

Govt readies plan to boost demand with infra spend, cash transfer

Rediff.com11 Jun 2020

This includes an infrastructure push which may lead to the government spending more than its budgeted capital expenditure for 2020-21. There are also discussions on increasing the scope and quantum of direct cash transfers to the beneficiaries who need it the most.

Current fiscal deficit may go up to 5.3% of GDP: CEA

Current fiscal deficit may go up to 5.3% of GDP: CEA

Rediff.com6 Jun 2020

'Given the 50 per cent or thereabouts increase in borrowing that has been announced, it is a reasonable estimate to say that at this time, an increase of 1.7-1.8 per cent on the 3.5 per cent budgeted fiscal deficit target is being anticipated,' Chief Economic Adviser Krishnamurthy Subramanian said on Friday.

'This was not specifically a COVID package'

'This was not specifically a COVID package'

Rediff.com30 May 2020

'It is a package for a new self-reliant India.'

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