Will help in reviving the economy and push investment.
The Reserve Bank of India on Wednesday retained the economic growth projection for the current financial year at 10.5 per cent, while cautioning that the recent surge in COVID-19 infections has created uncertainty over the economic growth recovery. In its last policy review, the RBI had projected a GDP growth rate of 10.5 pc for FY'22. Taking various factors into consideration, it said, "the projection of real GDP growth for 2021-22 is retained at 10.5 per cent consisting of 26.2 per cent in Q1, 8.3 per cent in Q2, 5.4 per cent in Q3 and 6.2 per cent in Q4."
Post-elections, the pace is expected to be greater for inbound deals, which have been largely pushed back for many months now for want of better clarity on the policy stance of new government, experts said.
Alleging that a government working against the citizens is at the helm, Rajya Sabha MP Kapil Sibal on Saturday announced a new platform 'Insaaf' to fight 'injustice' prevailing in the country and called on everyone, including Opposition parties' chief ministers and leaders, to support him in his endeavour.
FDI in brownfield investment has resulted in acquisition of domestic drug-manufacturing firms by multinational companies.
India and China have mostly set aside their bilateral differences in order to champion the cause of developing countries at the World Trade Organisation (WTO). That seems to be changing. During the latest round of China's trade policy review, India questioned its northern neighbour's claim that it was a developing country, since, going by the World Bank's definition, its per capita income belongs to that of an upper middle income country. "As per the per capita income level, the Chinese economy belongs to 'upper-middle income'. "How can China still claim to be a developing country? "What are the indicators which China is using to claim such a status?" India asked.
Tuesday's meeting at the PM's residence, attended by all the five secretaries in the finance ministry besides top officials of other economic ministries and NITI Aayog, cleared a five-year vision plan for the government to make India a $5-trillion economy by 2024.
She would be the first Indian to be occupying the coveted post at IMF after former RBI governor Raghuram Rajan
NDA under Mr Modi is as focused on the rural poor with doles and hand-outs as the UPA under Dr Singh was.
It is worth reconsidering if this fascination with either having a single party majority or Modi's leadership or, indeed, both, is such a great idea for India, says Udit Misra.
Foreign portfolio investor (FPI) flows into India may remain tepid in 2022, said a recent note by Goldman Sachs, who now peg the foreign portfolio investment into India at $5 billion in 2022, down from their earlier forecast of $30 billion with risks skewed to the downside. "There has been $15 billion of equity outflows YTD in India already, and the IPO of the largest insurance company has been pushed out. "Additionally, with no mention of India's inclusion in global bond indices in the Union Budget, there are risks to our already conservative base case assumption of an announcement of India's likely inclusion into the GBI-EM Global Diversified Bond Index in Q4-2022," wrote Andrew Tilton, Goldman Sachs' chief Asia-Pacific economist in a co-authored report with Santanu Sengupta and Suraj Kumar.
'We have to think of the repercussions if public sector banks are privatised and if they go to foreign hands.'
'If you look at the order books of capital equipment companies or money deployed on the ground, there is forward movement in terms of actual investment by the private sector.'
The United Forum of Bank Unions (UFBU), an umbrella body of nine unions, has given a call for a two-day strike from December 16 to protest against the proposed privatisation of two state-owned lenders. In the Union Budget presented in February, Finance Minister Nirmala Sitharaman had announced the privatisation of two public sector banks (PSBs) as part of its disinvestment plan. The government has already privatised IDBI Bank by selling its majority stake in the lender to LIC in 2019 and merged 14 public sector banks in the past four years.
The economy hasn't gathered even half the traction that some of us assumed it would just a year back.
'Indian macro conditions have never been better, and many businesses will safely compound earnings over the next five years.'
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The toxic brew of fiscal populism, crony capitalism and bad economic management has ensured the collapse of economic growth, industrial stagnation, stubbornly high consumer inflation, declining savings and investment, shrinking employment opportunities, and a dangerously vulnerable external financing situation.
Mark Mobius, executive chairman, Templeton Emerging Markets Group, is positive on India and believes the Indian economy is on a strong footing
A faltering economy may have led to a re-think on economic strategy. And Mr Modi might think he is politically strong enough to take some risks. But there could be a minefield ahead, observes T N Ninan.
Clearly, LoCs are becoming a key arrow in India's economic diplomacy quiver.
The solution to globalisation is decentralisation and the solution to multilateralism is reformed multilateralism, not a 1945-version of multilateralism, External Affairs Minister S Jaishankar has said.
Policy reforms in education, agriculture and infra sectors can push India into developed nations' league.
'The corruption charges in FCI are not the first and won't be the last.'
In the past two months alone, four companies have garnered a cumulative Rs 22,400 crore via this route.
My sense is that we are in a situation similar to 2011-13, notes Debashis Basu.
Defending his economic policies, Modi said demonetisation was 'a very big success story'.
Will Arundhati Bhattacharya be the RBI's first woman governor? Or will Urjit Patel succeed Raghuram Rajanas RBI governor when his term ends on September 4?
Fitch Ratings on Wednesday said India's high fiscal deficit would pose a challenge in lowering the debt to GDP ratio, which is expected to rise above 90 per cent in the next five years. It said India entered the pandemic with little fiscal headroom from a rating perspective. Its general government debt/GDP ratio stood at 72 per cent in 2019, against a median of 42 per cent for 'BBB' rated peers.
The prospects for strong, sustained economic reforms do not appear to be promising in India.
'The Russian attack might be a wakeup call for Europe.'
The speed at which he led the central bank in different areas -- ranging from internal reorganisation to inflation fighting, stabilising the currency, taking on rogue corporations, cleaning up bank balance sheets, and opening the sector -- makes one believe that Rajan knew he had only three years to do his job. A fascinating excerpt from Tamal Bandyopadhyay's MUST-READ Roller Coaster: An Affair with Banking.
'If because of El Nino, the monsoon is affected adversely in the current year, naturally it will affect income projections and consequently Budget numbers.'
Here is some background on the candidates seen as potential successors to Rajan at the RBI
Here's the full text of the maiden address to the nation by President Droupadi Murmu on the eve of Independence Day 2022.
'The government is sincerely working on employment generation. Unfortunately, they are depending on these people from Harvard. Their wrong policies are killing jobs. The government has to come out of the Western framework on which they depend upon a lot.'
Sangh affiliates believe the government's apparent anti-poor message led to their loss
Privatisation in Russia was endorsed by technocrats. It led to the rise of Vladimir Putin.
There is a need for tax reforms in the country in a bolder way, Singh said.
The government should frame new policies to assure growth.
He said his government was committed to further reform policies to boost 'Make in India' and for creating conducive business environment through stable and transparent regulatory mechanisms
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