'The slide in growth has arisen primarily because we have an NBFC crisis on top of a banking crisis,' points out T T Ram Mohan.
Fitch Ratings on Wednesday cut India's growth forecast to 10 per cent for the current fiscal, from 12.8 per cent estimated earlier, due to slowing recovery post second wave of COVID-19, and said rapid vaccination could support a sustainable revival in business and consumer confidence. In a report, the global rating agency said the challenges for banking sector posed by the coronavirus pandemic have increased due to a virulent second wave in the first quarter of the financial year ending March 2022 (FY22). "Fitch Ratings revised down India's real GDP for FY22 by 280bp to 10 per cent, underlining our belief that renewed restrictions have slowed recovery efforts and left banks with a moderately worse outlook for business and revenue generation in FY22," it said. Fitch believes that rapid vaccination could support a sustainable revival in business and consumer confidence; however, without it, economic recovery would remain vulnerable to further waves and lockdowns.
The revision will do little to help the Congress party-led ruling alliance, which faces an uphill battle in elections due by May amid allegations of economic mismanagement, corruption scams and high inflation.
Fitch had last upgraded India's sovereign rating from BB+ to BBB- with a stable outlook on August 1, 2006.
The government plan to sell stakes in state-owned enterprises would help it address many of India's existing economic concerns and alleviate the current "fiscal stress", according to Moody's.
Rediff.com's Harish Kotian checks out how much India's cricket coaches -- from John Wright to Ravi Shastri -- have been paid.
Petrol price on Monday was hiked by 30 paise a litre and diesel by 35 paise, taking the total increase in rates in the last one week to Rs 4-4.10 per litre. Petrol in Delhi will now cost Rs 99.41 per litre as against Rs 99.11 previously while diesel rates have gone up from Rs 90.42 per litre to Rs 90.77, according to a price notification of state fuel retailers. Rates have been increased across the country and vary from state to state depending upon the incidence of local taxation.
Andrew Symonds, who was 46 and was a member of Australia's World Cup-winning teams in 2003 and 2007, died in a car accident in Queensland.
Manish Pandey blasted a quickfire 76-ball 77 before Mitchell Swepson returned with a four-wicket haul to dismiss India 'A' for 230 in their first innings against Australia 'A' in the opening match of the unofficial four-day Test Series in Brisbane, on Thursday.
All the banks mentioned here have balance sheet size greater than Rs 50,000 crore (Rs 500 billion).
Cricket Advisory Committee (CAC) member Sourav Ganguly on Saturday said that the interview to select the new India coach will be held on July 10 in Mumbai.
Moody's upgrade should start a long-overdue correction. Credibility of the big credit rating agencies is under threat.
Fitch Ratings on Monday cautioned that the Indian government has little fiscal headroom at its disposal to respond to possible shocks to growth given the country's lowest investment grade credit rating with a negative outlook. "India's public debt/GDP ratio, at about 87 per cent in FY21, is well above the median of around 60% for 'BBB' rated sovereigns. "We revised the Outlook on India's rating to Negative, from Stable, in June 2020, partly owing to our assumptions about the impact of the pandemic on public finance metrics. "The government has little fiscal headroom at its current rating level to respond to possible shocks to growth," it said in a report.
Petrol price on Sunday was hiked by 50 paise a litre and diesel by 55 paise, taking the total increase in rates since resumption of daily price revision less than a week back to Rs 3.70-3.75 per litre. Petrol in Delhi will now cost Rs 99.11 per litre as against Rs 98.61 previously while diesel rates have gone up from Rs 89.87 per litre to Rs 90.42, according to a price notification of state fuel retailers. Rates have been increased across the country and vary from state to state depending upon the incidence of local taxation.
External Affairs Minister Yashwant Sinha on Thursday discounted the 'junk' grading of the rupee by rating agencies like Moody's and S&P, saying it was based on a few 'weak' parameters rather than the overall macro-economic picture.\n\n\n\n
Boman Irani makes his OTT debut with Masoom, and it was good to see the actor on screen after a long time, observes Deepa Gahlot.
Transiting from "survival mode", which took most of the management time in FY21, the bank has been able to take a long-term view in terms of growth and preparing technology in the past 12 months.
Fitch Ratings director Thomas Rookmaaker said India's debt-to-GDP ratio is likely to rise to 76 per cent from 70 per cent currently due to wider fiscal deficit and low economic growth.
Ruling out any change in India's sovereign rating due to a political standoff over the Indo-US nuclear deal, credit rating agency Moody's on Wednesday said the crisis was not serious enough to dent the country's economic policy framework.
The budget has strong growth impulses and response of the economy is positive.
Like in Brazil, India's government has only limited opportunities to provide some fiscal stimulus to offset a possible slowdown in capital flows, Moody's said.
The Indian economy has been plagued by several crises in the last few months. Yet, the nature of India's national conversation of late has been such that it does not adequately capture their complexity and potential for harm to the economy.
S&P Global Ratings on Wednesday lowered India's economic growth forecast to 5.2 per cent for 2020, saying the global economy is entering a recession amid the coronavirus pandemic. The agency had earlier projected a growth rate of 5.7 per cent during the 2020 calendar.
The retrenchments at the company promoted by Mumbai BJP chief Mangal Prabhat Lodha come at a time when the economic growth has dipped to a six-year low of 5 per cent, which has led many to fear if the spectre of job losses across sectors awaits next.
India and China are seeing economic slowdown while growth momentum is losing steam in most of the developed world, says Paris-based think tank OECD.
Don't let humidity be your skin's enemy, says Dr Abhishek Pilani.
S&P warned about spending on subsidies and heavy government debt.
Manjrekar agreed that match referee David Boon had no option but to allow India a concussion substitute.
The Australian said that he would love to represent SRH again but that is not in his hands.
S&P Global Ratings has forecast India's economy to shrink by 5 per cent in the current fiscal. It, however, has projected GDP growth to be 8.5 per cent in 2021-22 and 6.5 per cent in 2022-23.
For the current fiscal which ends on March 31, it put the real GDP estimate at 5 per cent. It estimated a 7 per cent growth in 2022-23 and 2023-24 fiscal years. The inflation rate was seen moderating to 4.4 per cent in the next fiscal from 4.7 per cent in the current.
India has pitched for a sovereign credit rating upgrade with Fitch Ratings, after announcing its budget last month.
India was already in the midst of a protracted economic slowdown before the virus hit due to a festering crisis among shadow lenders and declining consumer demand and private investment. Service sector activity in India is still effectively on hold.
Pakistan has been scrambling in recent months to avoid being added to a list of countries deemed non-compliant with anti-money laundering and terrorist financing regulations.
As Fahadh Faasil turns 39 on August 8, Subhash K Jha looks back at his favourite films featuring the brilliant actor.
The rating agency said that the 'Baa3' sovereign rating is supported by credit strengths which include a large, diverse economy, strong gross domestic product growth as well as savings, and investment rates.
India's economy is likely to grow at the slowest rate in a decade this year.
Fitch Ratings said with GDP growth of 6.5% and WPI-based inflation of 8.8%, India may have entered into a stagflation period in 2011-12.
Reliance Industries was the top gainer in the Sensex pack, rising over 1 per cent, followed by M&M, HCL Tech, Axis Bank, ICICI Bank and HUL. On the other hand, Bharti Airtel, Maruti, SBI, PowerGrid, NTPC and Tata Steel were among the laggards.
Gandhi also attacked Prime Minister Narendra Modi over the economic situation in the country, saying the PM should get his head "out of the sand" to deal with the problem facing the country.
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