'There are deeper, underlying, forces at work and we need institutional arrangements to guard against them.'
Increased selling of the dollar by banks and exporters amid sustained foreign capital inflows supported the rupee.
Rajan said too many infra projects do not have forex earnings thus are unable to pay in dollars or yen
Equity markets braved all odds this fiscal and rewarded investors with high returns as the benchmark Sensex surged more than 66 per cent despite COVID-led disruptions and concerns over its impact on the economy. Market analysts termed FY 2020-21 as a roller coaster ride for not only Indian markets but also for equity indices globally due to the pandemic. In an unprecedented come back, the 30-share BSE Sensex has jumped 19,540.01 points or 66.30 per cent so far this fiscal. This extraordinary rally holds significance as markets faced volatile trends this fiscal.
Finance Minister Arun Jaitley said that at a time when the private sector has been somewhat conservative in investments, public investment always takes the lead.
For his first Budget in July 2014, Jaitley inherited a fiscal deficit target of 4.1 per cent of GDP. From 4.1 per cent, the fiscal deficit came down to 3.4 per cent by 2018-19, with two slippages from the budgeted targets, in 2017-18 and 2018-19, the former due to introduction of the GST, says Arup Roychoudhury.
In the global context, the country "stands out" in terms of relatively stronger growth and improved economic fundamentals, Raghuram Rajan said.
Today, the economy requires a certain amount of push not just from the monetary policy but also from its transmission: Das.
'This is happening regardless of the Budget.'
Expectations are high. There is a little bit of euphoria in India, says RBI governor.
The panel noted that the macro-economic fundamentals of the economy are sound but challenges remain, several of which are structural in nature.
Owing to Finance Minister Nirmala Sitharaman being new to her role, a number of crucial announcements in the Budget bore Garg's imprint, especially the decision to borrow in overseas markets, reduce the fiscal deficit as a percentage of gross domestic product, and resort to off-Budget borrowing to meet that target, says Arup Roychoudury.
Raghuram Rajan is said to have informally written to select policymakers and experts, to curb 'unnecessary' speculation over his future at RBI.
Finance Minister Arun Jaitley on Monday said domestic private sector investments have been slow and high cost of capital was also affecting several sectors.
'It is time to allow the rupee to move towards its true value, as it is hurting Indian exports, investment and SMEs associated with export sectors that create jobs,' argues Pravakar Sahoo.
Two successive reports, one by Percy Mistry in 2007 and the other by Raghuram Rajan in 2008 had provided the RBI and the finance ministry with blueprints of what to do next. Both reports, unfortunately, was put on ice. The global meltdown saved the RBI. It also saved the finance ministry from having to work on the two reports.
They sought further cut in interest rates as well as reforms.
Whereas the headline growth rate appears very respectable, India needs faster to growth to generate jobs.
A way out of the economic slump is to revisit the template of 15 years ago and follow its constituents, recommends Ajay Shah.
Rajan said the government focussed more on fulfilling its political and social agenda rather than paying attention to the economic growth.
Given Indian corporates's high indebtedness, new credit will be used for servicing loans rather than building factories. This is setting us up for more companies on life support and more zombie banks, warns Rahul Jacob.
'Modi must keep his members in check or risk losing domestic and global credibility,' Moody's warned.
'Kindling the private sector's animal spirits is more important than focusing on how government can give jobs on its own.'
13 eminent economists, including former RBI governor Raghuram Rajan and current International Monetary Fund Chief Economist Gita Gopinath, in a report have asked the political establishment not to resort to populist tricks.
Today, with growth having slowed and macro-economic challenges in every direction, would the government have benefited from the advice of 'Harvard' economists? asks T N Ninan.
Jaitley was reacting to a question by CNBC TV18 on Rajan's remarks last week.
The rank of COO is the latest in a series of decisions that met with internal resistance at Mint Road and now North Block.
The decision assumes significance in the wake of a scam in the PMC Bank affecting lakhs of customers who are facing difficulties in withdrawing their money due to restrictions imposed by the Reserve Bank of India.
In the past two months alone, four companies have garnered a cumulative Rs 22,400 crore via this route.
Vice-Chairman Arvind Panagariya said that India is facing a health crisis that has led to a sudden stop of the economy.
Indian economy was growing faster than the global average and all other major economies: FM
The court also allowed Indian Banks' Association, another respondent, to file a response.
'Unless we get the health and economic situations right at the same time, we will not recover.'
'We all wanted a strong Centre with a decisive mandate from the people, to allow them to take bold decisions.'
"Every time we cut trees, we plant more. It is a rule of the forest department," Javadekar said.
Morgan Stanley says, India will clock 7.9 per cent GDP growth in current fiscal.
With GST, demonetisaton and the banking sector reset, investment banker Christopher Wood expects PM to focus on generating jobs ahead of the 2019 election.
'In the short-term, the markets may be affected' by the review but 'it will help address what they are worried about which is why we need transparency,' says former chief economic advisor.
Moody's expect RBI to hold policy 'repo' rate steady to have a neutral stance in this growth
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