The rupee appreciation will most likely lead to lower inflation and less ambiguity.
Will allowing business correspondents to hawk insurance products help in reviving 5-lakh strong field agents as a viable channel?
The rupee's recent decline is sharp, yes, he says, but the tale would be scary if India was like the Asian crisis countries of 1997-98, or even Argentina in 2001, when large amounts of debt was denominated in foreign currency. According to him, India's percentage of external debt to GDP was around 20
Many macroeconomic forecasters have built predictive models on inflation, all of which highlight intense downward pressure on prices.
It would be a miracle indeed if we grow at 7/8 per cent a year over the current and next few years, says A V Rajwade
The new foreign trade policy is considered to be less effective.
The currency market won't care for our moans, groans, cries and sighs. The rupee will find its own level, explains Tamal Bandyopadhyay.
The revival of long-term growth is highly dependent on the revival of private investment.
'We are going to need more technical people in government.' 'You can't expect a generalist to understand the complicated world of financial engineering.' 'I regret to say that most of our politicians have no competence to deal with these things. Nor is there a willingness to learn.'
It is high time to manoeuvre the rupee more effectively and predictably, even as it has to be recognised that such tweaking of the rupee needs to be accompanied by reforms to the real sector and factor markets.
Donald Trump's exaggerated opinion of his dealmaking capacity can get him into trouble, observes R Sriram.
The RBI governor is focused on growth, and keeping rupee slightly depreciated is part of that 'Atmanirbhar Bharat' strategy.
So far, India has attracted over $20 billion in the debt segment, thanks to the rate differential.
What makes Pushpa 2 float is Allu Arjun's magnetic performance. The actor really goes an extra mile to deliver the wildfire he promised, observes Mayur Sanap.
The official data on April-June GDP will be released on August 31.
India needs to sustain a GDP growth rate of 8 per cent to become a five trillion dollar economy by 2025, the Economic Survey has stated.
Data on the real value of the currency against other currencies tells a different story.
Traders believe the RBI will step in more strongly, if the rupee starts falling towards 65
Faced with sluggish economic growth and dwindling exports, China on Wednesday devalued its currency for the second consecutive day.
A weaker rupee might stimulate Indian exports and nullify some of the effects of Chinese devaluation.
Can we find fault with RBI for not intervening enough in the market? Actually no, say some experts. A correction in rupee was long overdue.
The fact that the US recovery needs an elaborate defence suggests that things are far from certain.
Following are the highlights of the Economic Survey 2022-23 tabled in Parliament on Tuesday
The argument for a weaker rupee is substantial.
'Tax cuts will have only marginal effects in the short run and significant positive effects in the medium term,' says Shankar Acharya, former chief economic adviser to the Government of India.
CII suggested the policy measures required to ease the tight liquidity situation by cutting CRR by at least 50 basis points.
Moody's Investors Service on Tuesday lowered India's GDP growth forecast for the 2020 calendar year to 5.3 per cent, on coronavirus implications on the economy. Moody's had in February projected a 5.4 per cent real GDP growth for India in 2020. This too was a downgrade from 6.6 per cent earlier forecast.
Indian rupee, which earlier this week touched an all-time low, is likely to remain under pressure and may test new levels as a fallout of the US Federal Reserve indicating more interest rate hikes, experts said. The aggressive rate hikes will dampen demand and increase the possibility of a recession in the US. This could accelerate the pace of capital outflows, weaken the rupee and raise the threat of imported inflation.
May touch 64/$ due to foreign flows slowing down
The surge in oil prices has also affected the rupee, which hit a 6-week low of 70.25 on Friday against the dollar.
Mr Prabhu has a big challenge ahead in implementing trade reforms to regain the lost export momentum, says Jayanta Roy.
A gradual increase works best for the US, as well as global markets, says Nizam Idris managing director, head of strategy (fixed income and currencies), Macquarie Bank.
For India, struggling for competitiveness, the current rupee overvaluation in terms of real effective exchange rate is a genuine constraint.
Only Rs 10,720 crore of the junked currency notes did not return to the banking system, rest 99.9 per cent was deposited raising question mark over the government's effort of curbing black money through the demonetisation.
'India's emergence as a top crypto market comes despite a regulatory and tax environment that can be challenging for the industry to navigate.'
While India won't be immune to global spillovers, we need to create the macro preconditions for sustained growth. Policy agility, prudence, and resilience will be key, suggests Sonal Varma.
Although the first woman to hold the position of chief economist at IMF, it would be wrong to see her appointment through the lens of gender
A comprehensive technical framework needed, from which a more convincing policy could be demonstrated
The repo or short term lending rate remains unchanged at 6.75 per cent and the reverse repo rate at 7.75 per cent.
Since funds will find it difficult to hedge their underlying cash equity positions, many will have to reduce their overall exposure to Indian equities.
