The non-food component in the price basket will continue to keep inflation at a high level and result in a "long pause" in interest rates, a foreign bank said on Wednesday. The central bank is likely to pare the pandemic-driven emergency response as well, the report by Singaporean lender DBS said. It can be noted that the high inflation driven by the food prices has forced the RBI to go for a status quo in rates for the three consecutive reviews of the bi-monthly policy meetings, even as growth continues to be in the negative territory.
'The Indian economy is in slowdown and growth may stay slow,' notes Devangshu Datta.
They say that a stimulus package may not be necessary because, unlike last year's total lockdown, public transport, including the railways and airlines, is running and the restrictions on movement are localised and, in some cases, are partial rather than total.
The new data comes a day after China and the US signed a long-awaited phase one deal, marking a ceasefire in the 18-month-long trade war which saw the world's two largest economies slap 25 per cent tariffs on about half a trillion-dollar worth of each other's exports. The world's second-largest economy grew by 6.1 per cent last year, its worst performance since 1990, but it remained above the psychologically important mark of six per cent, according to the National Bureau of Statistics (NBS).
'He will consolidate the Russian hold over the Eastern Russian majority provinces in Ukraine and quickly withdraw from the rest of Ukraine.' 'At all costs, the Russians should avoid attacking and capturing urban areas, else they risk getting into a quagmire,' cautions Colonel Anil A Athale (retd).
'If the government spends Rs 10 lakh crore this year then you would be looking at a GDP growth of minus 5 per cent.' 'If you do not do this, you will be looking at GDP growth between minus nine and minus 10 per cent.'
Pronab Sen, the government's former chief statistician, says contrary to perception, GDP growth won't be drastically hit in the present quarter.
ITC was the top laggard in the Sensex pack, tanking 6.97 per cent, followed by L&T, HDFC, SBI, ONGC, ICICI Bank and IndusInd Bank.
'Today, there is no easy money to be made after the run-up in equities.'
The one-time restructuring of loans will help every firm and prevent cost-cutting measures such as lay-offs.
Where do Indian workers stand when it comes to per capita income around the world?
The government has been waiting for the expansion by the private sector, Finance Minister Nirmala Sitharaman said while reminding India Inc of various measures including corporate tax rate cut, policy consistency, ease of doing business, among others to facilitate investment.
The measures to reduce the current account deficit should have focused far more on narrowing the trade imbalance, principally through export facilitation and linked FDI, says Nitin Desai.
The government plans to raise resources to finance capital spending beyond the Rs 3.10 lakh crore budgeted for 2017-18 through higher borrowing or divestment receipts.
'It has the potential to add half a trillion dollars to the economy over the next five years.'
Moody's rates India's outlook at stable.
'In a serious fiscal situation like this, an ostrich-like focus on annual budgeting, event management and defensive rhetoric will only make matters worse,' warns Rathin Roy.
'Many Indians are not voting mostly on the basis of issues like the economy and their own well-being as measured by data provided by the government.' 'They seem to be as concerned and perhaps more concerned about other things, especially those that have to do with the harassment of India's minorities,' asserts Aakar Patel.
As a percentage of the aggregate Budget expenditure, it is 12 per cent.
However, independent economists are not as gung-ho as the finance ministry over the likelihood of deficit target being met this time around, says Indivjal Dhasmana.
According to a study -- Global Growth Generators: Moving beyond 'Emerging Markets' and 'BRIC' -- conducted by global financial giant Citi, India will emerge as the world's number one economy and have a per capita GDP of $40,000 by the year 2050.
'Pakistan has power -- they have the power of terrorism and the reluctance of the world to act against them.'
In our view, the overall fiscal consolidation could impart a negative fiscal impulse after 3 years of positive impulse.
'HEADLINE HUNTING. A NUMBER -20 LAKH CRORES. NO DETAILS'
This is the third consecutive month when GST mop-up remained below the Rs 1 lakh crore mark, despite the festival season.
Finance Minister Nirmala Sitharaman on Tuesday unveiled a Rs 39.45 lakh crore Budget with a view to fire up the key engines of the economy to sustain a world-beating recovery from the pandemic. This was Sitharaman's fourth Budget. While the taxpayers were left in the lurch, once again, was she able to cheer Corporate India?
Referring to demonetisation of high value currency notes, Jaitley said it was well received as 'imandari ka utsav.'
'Slowing down of the economy was mainly due to the demonetisation shock...' 'If you cut off the oxygen supply to a patient in the ICU and the patient dies, the patient does not come alive again when you restore the oxygen supply.'
There is a near consensus that at least a 25 basis points cut, if not 50, can be expected in the June policy.
Projecting acceleration in India's GDP growth to 9% for FY 2011-012, Economic Advisory Council to Prime Minister seeks measure to address serious supply bottlenecks.
Union Budget had projected the fiscal deficit at Rs 5.56 lakh crore.
While foreign currency rating was retained at Baa2 -- the second-lowest investment grade score -- Moody's also projected a fiscal deficit of 3.7 per cent of gross domestic product in the year through March 2020, a breach of the government's target of 3.3 per cent.
India's economic growth slowed to 7 per cent in the three months through June from 7.5 per cent in the previous quarter
Both the government and RBI are expecting the CAD to be below $56 billion in the current fiscal compared to the record high of $88.2 billion, or 4.8 per cent of the GDP last fiscal.
India's current account deficit which narrowed in the second quarter of this fiscal, however, is likely to widen during the second half of FY 2013-14 as seasonal demand bring in more imports, an HSBC report says.
Many governments, especially in the developed world, have resorted to massive stimulus measures to bolster their economies since the 2008 global financial meltdown.
On reforms in pipeline, she said the government is for universal right to minimum wages and wants to remove regional disparity through a national floor wage.
Former Reserve Bank of India governor Raghuram Rajan said that Rs 65,000 crore is required to help the poor affected by the coronavirus-induced lockdown. He also laid stress on the need to restart the economy while taking precautions.
Fiscal measures may fall short or prove to be too late to achieve the revised budget deficit target, it says.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances