The rupee came under pressure on demand from importers as the dollar strengthened overseas.
The Bharatiya Janata Party on Tuesday hit out at the government for the recent hike in petrol prices and alleged that this increase is a result of the UPA regime's wrong economic policies and not an outcome of any current global situation.
The parlous state of Asia's third largest economy was reflected in the rupee's 18 per cent plunge against the dollar to all time lows since May, when signals emerged that the US Federal Reserve was considering winding down an easy money strategy that had benefitted emerging markets like India.
'For experienced and risk-taking investors, now may be the time to go all in.' 'By 'experienced and risk-taking', I refer to those who remained net buyers in equities during the early stages of the 2020 pandemic.' 'On the other hand, those who exited the markets during the pandemic may go the SIP way.'
This means lower losses on fuel sales by Indian oil companies and a shrinking oil subsidy bill for the government.
To attract more dollar inflows, the Reserve Bank extended the deregulated interest rate scheme for NRE deposits till January 31 next year from the earlier November 30.
The use of RBI capital to strengthen public sector banks will have many positive implications for the economy -- and a few manageable downsides, points out R Jagannathan.
Total foreign investment in the stock market has reached Rs 90,715 crore so far in 2013.
The partially convertible rupee ended at 62.2825/2925 per dollar.
The employment situation remains dire. Whatever can be done to promote greater low-skill employment should be pursued aggressively, advises former chief economic adviser Shankar Acharya.
Since end-May there has been volatility in the foreign exchange market.
Economic growth in the last two years has stayed above seven per cent.
In April, the World Bank had projected India's GDP would grow at 6.1 per cent in the current financial year and at 6.7 per cent the following year.
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The government has also raised the duty on gold ore/ concentrates/dore bars and silver dore bars ranging from 7 per cent to 10 per cent.
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Gold prices have eased off in recent months after the formation of a new government bringing in positive sentiment back to the stock market.
In a bid to enhance its equity exposure and earn higher returns for its nearly 65 million subscribers, the Employees' Provident Fund Organisation (EPFO) is considering reinvesting 50 per cent of its exchange-traded funds (ETFs) redemption proceeds back into equity. Sources close to the development said a proposal regarding this was discussed in the investment committee (IC) meeting in October last year, and the recommendation has been sent to the Central Board of Trustees (CBT), the apex decision-making body of the EPFO for its approval. The next CBT meeting is scheduled to be held on Saturday.
In the past three years, personal loans have grown at twice the rate of growth in personal disposable income, leading to a steady rise in household indebtedness. At the end of March this year, Indians owed Rs 25.2 lakh crore to banks and listed non-banking finance companies (NBFCs), up 65 per cent in the past three years.
The government on Wednesday hiked the import tariff value on gold and silver to $431 per 10 grams and $646 per kg, respectively, taking firm global cues.
'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.
'If because of El Nino, the monsoon is affected adversely in the current year, naturally it will affect income projections and consequently Budget numbers.'
Worried over excessive outflow of foreign exchange as royalty and fees for technology transfer and use of brand names, Commerce and Industry Minister Anand Sharma wrote to Finance Minister P Chidambram on the matter.
With trade deficit falling 24% in Apr-Dec and stable capital flows, FY14 may end with a balance-of-payments surplus.
India builds up record FX after Fed hints rate hike in future.
The current account balance is the single most important indicator to assess an economy's health.
The fiscal deficit, gap between expenditure and revenue.
India, the world's largest consumer of gold, has imported 393.68 tonnes of the yellow metal during the April-September period of this year
The Indian economy grew by 4.9 per cent in 2013-14 fiscal.
Given the concerns around trade wars that threaten to jeopardise global capital flows as well, attracting foreign capital needs to be a policy priority, says Neelkanth Mishra.
The sharp fall in rupee since the beginning of May will make things difficult for the central bank which is on the path of easing the monetary policy to revive growth.
Govt proposes to introduce redeemable gold bonds.
There is a case for analysing the fiscal deficit, separately for expenditure and investment.
The rule required firms to mandatorily export 20 per cent of the gold they had imported.
These imports grew 89 per cent to $8.39 billion in May.
The government hiked import duty on gold to 10 per cent and the RBI also imposed curbs on its imports by linking it with exports.
In absolute terms, fiscal deficit, or the gap between overall expenditure and receipts, stood at Rs 74,611 crore (Rs 746.11 billion) in the first month of the current fiscal, against Rs 53,993 crore (Rs 539.93 billion) in the same period last financial year (2010-11).
Rising fuel prices, intense competition and inability to pass on spiralling expenses have been negatively impacting the domestic airlines.
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The Indian rupee touched record low of 65.52/dollar on Thursday and is down 16 per cent so far this year despite efforts by policymakers to prop it up.
India is the largest importer of gold after China.
The Financial Stability and Development Council members include heads of regulatory bodies like RBI, Sebi and Insurance Regulatory Development Authority.
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