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And with prices low, the equilibrium real exchange rate will also be low, that is to say depreciated.
While far from being a currency war, India does not have much of an option but to depreciate to accommodate its exports at a time when China shows its intent to let its currency depreciate.
Rupee is seen to remain in the range of 67.50-68.80 in the short-term
Bank credit growth, still sluggish, could see a rise if the Reserve Bank of India decides to cut interest rates, believes Ashima Goyal.
The corporate sector does not care from where the money is coming.
RBI Governor flayed easy monetary policy of central banks in advanced economies saying it is "more cause than medicine".
'It has a natural inclination to foster as much competition among civilian politicians as possible.'
Demonetisation was not a good idea and the time should have been utilised instead to fine-tune the Goods and Services Tax before it was introduced, said Gita Gopinath, John Zwaanstra Professor of International Studies and of Economics at Harvard University, in an interview with Advait Rao Palepu.
A fall in the rupee could boost exports. But the flip side of the equation is that a weaker rupee could stoke some inflation
The world economy is going through a tough phase.
Rocky Aur Rani Kii Prem Kahani packs in abundant entertainment and hat tips to the KJo brand, observes Sukanya Verma.
RBI governor Raghuram Rajan is likely to cut rates in next monetary policy.
The RBI was not party to the decision to demonetize 500 and 1,000-rupee notes, which was taken at the highest level of India's political leadership.
'We believe there will be a full shutdown for four weeks and a partial shutdown for eight weeks.' 'Hence, economic activity is unlikely to normalise before the end of May.'
A V Rajwade wonders if the Modi sarkar is pursuing price stability at the cost of potential social instability in both rural and urban India.
'To simply let the rupee depreciate to any level according to market forces will not be in the country's interests.'
Stating that the forthcoming elections will delay the reform process and hurt growth, international rating agency Moody's on Monday said it expects growth to pick up to only 5.5 per cent in FY15.
We should brace ourselves for more bad news in the coming quarters -- on economic output and growth, strains on the fiscal deficit, export slowdown, small and micro enterprises in distress, and further accumulation of NPAs in the banking sector, says Rahul Khullar.
'...and defensive until the global macro headwinds turn more benign.'
The industry status will help the sector access bank lending at average interest rates
RBI lowers GDP forecast for FY16 to 7.4%
Many things could play spoilsport for the Indian economy.
'The Reserve Bank's independence has remained a work in progress, an enduring challenge that the nation has been grappling with on an ongoing basis,' says RBI Deputy Governor Dr Viral Acharya.
Fitch Ratings says in a report published on Thursday that the spillover effects of a weaker rupee have not significantly hurt India's creditworthiness, and hence would not trigger any rating action as this point.
The prime minister's August 15 address was undoubtedly inspirational and outlined important economic and social objectives, such as making India a global hub for manufacturing, ensuring bank accounts for all poor families, major thrusts in sanitation and cleanliness, and a radical restructuring of the Planning Commission.
Exchange rates to provide for 5-7% savings in package costs; consultants forecast higher property purchases by Indians; currency depreciation to make education cheaper
While efforts are being mounted on a war footing to arrest its spread, COVID-19 will impact economic activity in India directly through domestic lockdown. The second-round effects, it said, would operate through a severe slowdown in global trade and growth.
Despite the demonetisation of 2016 and the rise in digital transactions that followed, the economy's dependence on cash has remained as high as ever. So when the Reserve Bank of India (RBI) introduced a pilot project of its version of digital cash - called the central bank digital currency (CBDC) - on December 1, many questions were asked. Can the CBDC replace physical cash, even partially? Can it match cash in terms of convenience? Are CBDC transactions truly anonymous?
Silverline seems symptomatic of how Kerala -- its claimed education, awareness and all -- overlooks its real problems, notes Shyam G Menon.
'The prospects for both India and the global economy is that we are headed towards a very difficult time.' 'I see very uncertain at least 8-10 months for both India and the rest of the world.'
'The new government will have to contend with slowing economic growth, weak private investment, anaemic exports and vulnerable external imbalances, a stressed financial system, mounting fiscal pressures (including high government debt-to-GDP ratios) and an exceptionally bad employment situation,' says Shankar Acharya, former chief economic adviser to the Government of India.
Softening inflation, Das said would make available more policy space to the central bank to address risks to the growth going forward.
RBI's out-of-turn rate cut has surprise few economists.
Are we running a cricket match using football rules, asks Ajit Balakrishnan.
Rajan said that central banks should not ignore global responsibilities.
'As the growth momentum reverses benefiting from re-monetisation, it will be accompanied by a rise in inflation.'
Indian students planning to study abroad this year have to pay higher fee, fund their quarantine stay and also compete for on campus work opportunities.
'I hope the trend is sustainable and that economic activity accelerates going forward.'
All laws have been modified to omit the domicile clause for property rights in the valley. This effectively means that anyone with enough money to spend can now technically buy property there, writes Sai Manish.
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