The HSBC India Manufacturing Purchasing Managers' Index for the manufacturing industry climbed from 49.6 in October to 51.3 in November on the back of a rebound in new orders and output.
Addressing the nation on the 70th Independence Day from the Red Fort, the prime minister had announced a 20 per cent hike in the pension for freedom fighters.
In August, wholesale prices rose 3.74 per cent year-on-year.
Terming the rise in October retail inflation despite a bumper crop as "disturbing", India Inc said the government must immediately address supply side bottlenecks to bring down the consumer price inflation.
Raghuram Rajan said the passage of the GST Bill augurs well for the growing political consensus for economic reforms.
The HSBC/Markit purchasing managers index for the services industry inched up to 47.1 in October from 44.6 in September, the fourth successive monthly contraction of service sector output across India.
India's manufacturing sector activity contracted for the third straight month in October amid falling levels of production and new orders, as the business climate within the country remained tough, an HSBC survey said on Friday.
Soft crude prices will cut fuel subsidy bill and help contain fiscal slippage this year.
Issuers are currently not comfortable with the bids they have been getting for their bond offerings.
Governor Urjit Patel and his deputies spoke to the media about the central bank's decision to raise the repo rate.
DBS called Rajan's decision not to seek an extension as a 'negative surprise'.
Costlier vegetables slowly pushed retail inflation, which had remained well within the Reserve Bank's comfortable level of 4 per cent during most part of 2019, peaked to more than three-year high of 5.54 per cent in November.
Monetary Policy- Easing expected to happen later this financial year.
Rajan has been facing continuous attacks by Bharatiya Janata Party MP Subramanian Swamy and some other sections, who have alleged that he has failed to lower interest rates and boost the economy
At item level, rice, coconut oil, fish fresh, poultry, milk, onion, vegetables, fruits, sugar, cigarette, electricity charges etc. are responsible for increase in the index.
The Centre has decided to create a buffer stock of 350,000 tonnes.
A government panel examined the records of employees surveyed by Labour Bureau's quarterly enterprises surveys and mapped it with the EPFO's subscribers and found "unexplained variations" between the two.
The change in the baseline for IIP and WPI, currently at 2004-05, is expected to bring in more accuracy in mapping the level of economic activity and calculating other numbers like national accounts.
With fuel being the main input cost for the transport sector, rise in cost of operations is a given. The sector is unsure on the extent of being able to pass this on through rentals or to absorb it with higher volumes.
Government's push for Make in India which focuses on select 26 sectors and improving the 'ease of doing business' will aid the manufacturing/industrial growth.
Food prices probably fueled a sharp rise in India's retail inflation in December after the record low struck the previous month.
RBI will review the monetary policy again on September 29.
Last week, the Consumer Price Index-based inflation for the month had contracted to 4.4 per cent.
Lower crude oil prices would impact India's inflation, CAD.
As the MPC is mandated to target CPI inflation rate at 4 plus minus 2 per cent, any measurement error in CPI is likely to have grave consequences for monetary policy.
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As on Monday, the prices of many vegetables had fallen as much as 50% compared with those a month before, due to increased supply, following the arrival of winter crops in the markets.
Broader markets underperformed indices with BSE Midcap down 0.43% while the Smallcap index fell 0.07%.
In a surprise move, the Reserve Bank on Wednesday left the repo rate unchanged at 7.75 per cent, while the cash reserve ratio too is retained at 4 per cent.
The US Fed's rate cycle is set to turn later this year, but India is in a much better position than it was in 2013.
The HSBC/Markit Purchasing Managers Index for the services industry inched up to 47.2 in November from 47.1 in October, the fifth sub-50.0 reading and indicated an output contraction across the Indian service economy.
Inflation trajectory does not match the slump in demand, prolonged pause on rates likely.
Clouding the inflation outlook is the recommendation of the 7th pay panel for an average 24 per cent pay hike for millions of its employees, which would lift demand-driven price pressures.
Instead of a rate hike, or even a pause, there could be a window for the RBI for an interest rate cut
Demonetisation is the biggest reason for the rise in preference for small savings.
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Says high inflation has to be reversed to achieve sustainable GDP expansion.
The Reserve Bank on Tuesday cautioned that continued uncertainty over monsoon could stoke food inflation, but expressed the hope that government policies will improve supplies in the coming months.
Retail inflation inches up to 3.77%; IIP growth dips to 3-month low
Andhra Pradesh posted 8.14% consumer inflation in October.
RBI has pegged the GVA growth of 7.6 per cent for the current fiscal and 7.9 per cent the year after
North Block and Mint Road seem likely to now stick to the earlier convention of the RBI governor coming to Delhi and being the only MPC member meeting the finance minister and senior bureaucrats on pre-policy meetings
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