India's economy in FY26 saw significant momentum from investment demand, with gross fixed capital formation (GFCF) accelerating to 8.2 per cent, while private final consumption expenditure (PFCE) also grew steadily, according to provisional estimates.
The Reserve Bank of India (RBI) has announced a record surplus transfer of Rs 2.87 trillion to the central government for FY26, driven by increased income and an expanded balance sheet, despite a reduction in the contingent risk buffer (CRB) to 6.5 per cent.
The RBI's monetary policy committee is expected cut benchmark interest rate by 25 basis points in its policy review meeting next month to push growth, India Ratings and Research (Ind-Ra) said on Thursday. "We expect the headline inflation in FY25 to cool off to 4.7 per cent. Monetary easing may be limited to 75 bps in FY26," Ind-Ra Chief Economist and Head Public Finance, Devendra Kumar Pant said.
CAG warns most states of fiscal imprudence as March spending overshoots limits, with key departments exhausting large portions of budgets in the last month of FY24.
'It has also outlived its initial purpose of reducing physical gold imports.'
Amid low growth elsewhere, gross value added (GVA) growth in agriculture and allied activities recovered during the second quarter of the current financial year (Q2FY25) to 3.5 per cent year-on-year (Y-o-Y) due to strong monsoon. Experts feel that the rains have laid the foundation of an even better GVA performance in subsequent quarters. GVA growth in the first quarter of FY25 was 2.0 per cent.
Pant, a 1991-batch Indian Administrative Service officer of Rajasthan cadre, is currently secretary in the ministry of ports, shipping and waterways.
The Union Budget 2011-2012 is likely to be more beneficial for the special and underdeveloped states, including J&K, Himachal Pradesh and Bihar, rating agency Fitch said on Wednesday.
'The nominal GDP growth assumption for FY25 may be revised upwards on higher growth expectations.'
Analysts and economists have hailed the fiscal projections in the interim Budget, saying the lower fiscal deficit forecast shows that the government, even in an election year, is serious about fiscal consolidation and that the numbers look achievable. According to Devendra Kumar Pant, the chief economist at India Ratings, the two broad themes of the interim Budget are fiscal consolidation and stepping up focus on agriculture/rural to course correct, to some extent, the differential benefits of the ongoing economic growth that's tilted in favour of upper-income bracket/urban households. The projected fiscal deficit numbers for FY24 and FY25 suggest that the government is serious about achieving the fiscal consolidation path of 4.5 per cent fiscal deficit by FY26, and given the nominal GDP growth assumption and revenue buoyancy, the target appears plausible, Pant said in a note.
Finance Minister Nirmala Sitharaman is likely to step up efforts to boost consumption and rural economy while keeping inflation under check when she presents her sixth straight Budget on February 1. Experts said one way to boost consumption is to put more money in the hands of people, and one of the possible ways of doing it is by reducing the tax burden through tinkering with tax slabs or increasing the standard deduction. Another proposal is related to increasing the funds under the rural employment guarantee scheme MGNREGA and higher payout for farmers.
The ministry of finance is likely to assume crude oil price to remain within $85 per barrel while estimating subsidies for the Interim Budget 2024-25 (FY25), to be presented on February 1. Brent crude prices moved up on Thursday, ending at $78.9 per barrel. Crude oil and cooking gas prices, which move in tandem, impact fertiliser and cooking gas subsidies, constituting 53 per cent of the government's total subsidies.
The Centre is staring at a combined shortfall of up to Rs 1 trillion in excise and Customs revenues in the current financial year (FY23) compared to the Budget estimates (BE), mainly because of duty cuts on edible oil and petroleum products. The government set a target of Rs 3.35 trillion for excise and Rs 2.13 trillion for Customs mop-up for FY23 while presenting the Budget in February. "As excise duty collection is mainly driven by diesel volumes, we might see a clear gap in the level budgeted for FY23, following the reduction in cesses on petrol and diesel in May. We are expecting somewhere between Rs 80,000 crore and Rs 1 trillion dip in excise and customs duty collections," a senior government official told Business Standard.
Sluggish infrastructure sector growth would also have impact on IIP as these segments account for about 41 per cent of the total factory output.
Costlier vegetables and eggs pushed up retail inflation to a nearly six-and-a-half year high of 7.61 per cent in October, keeping it significantly above the comfort zone of the Reserve Bank.
Oil sank to the lowest level in a month after shedding all of its gains from the US-Iran clash as traders waited to see whether any further hostilities will disrupt exports from the East Asia.
Three different invitations were sent out for the wedding and the receptions with top-run guests being sent a large red box that contained an intricate chest incorporating a mini silver temple featuring gold idols of various Hindu deities, including Lord Ganesh, Radha-Krishna, and Goddess Durga.
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.
The state is now under pressure to revise the salaries of its 800,000 employees, which would add to the strain of an already debt-laden state exchequer.
Heres a roundup of all the Ranji Trophy action from across India.
Relax fiscal consolidation, boost public capex and reduce cost of finance, industry tells Centre
The number of centrally sponsored schemes have increased to 35 in FY22 from 30 in FY21 and central sector schemes have increased to 704 from 685 in the previous year, reports Dilasha Seth.
'Raj saheb and I are trying to fill the backlog of the last ten years.'
The size of the GDP in the second quarter of 2018-19 is estimated at Rs 33.98 lakh crore, as against Rs 31.72 lakh crore a year ago
The RBI cited lower-than-expected inflation, weak crude prices and weak demand, as well as the government's commitment to sticking to a fiscal deficit target as reasons.
India will be hoping to put up an improved bowling show with their front line pacers Bhuvneshwar Kumar and Jasprit Bumrah back in action for the third ODI
Images from the first ODI between India and the West Indies in Guwahati.
The Virat Kohli-led Indian side will look to clinch five-match ODI series against West Indies when they play the must-win fifth and the final match at the Sabina Park here on Thursday.
Formidable India will hope to get more answers for their unsettled middle-order puzzle when they take on a reeling West Indies in the five-match ODI series, starting Sunday and ticking off the home team's countdown to the 2019 World Cup.
With Jason Holder's men just about managing to draw the three-match ODI series against Afghanistan 1-1, there is no doubt that the current Indian team are a few notches ahead in terms of quality.
India have endured series losses in South Africa and England over the last nine months but have still managed to remain the number one side in the longest format.
India are favoured to extend their dominance while West Indies face insurmountable odds to draw parity, in the second One-day International, in Visakhapatnam, on Wednesday.
India will look to find the 'perfect' balance in their playing eleven when they take on a resurgent West Indies in the fourth One-day International in Mumbai on Monday. The decision to play with five specialist bowlers in Saturday's third ODI in Pune did not work for India and they ended up as the losing side for the first time in the home series against the West Indies.
India would be aiming to seal the series with yet another resounding performance against a below-par West Indies.
Yuvraj Singh's patchy form and fear of inclement weather will be paramount when India take on the West Indies in the second One Day International, in Port of Spain on Sunday.
Who was the most valuable player of the India-West Indies ODI series?
If the government cuts wasteful expenditure as it is trying now, the deficit would at most fall to 8 per cent, not less than that.
Rain is expected to play role in 5th ODI in Thiruvananthapuram even as the wicket-keeper batsmen will look to complete 10,000 ODI runs.
A formidable India will fancy their chances of taking an unassailable 2-0 lead against a weakened West Indies when the two sides lock horns in the third game of the ongoing five-match ODI series, in North Sound, Antigua, on Friday.
