India Inc, which is sitting on cash balances of 13.5 trillion, is using the funds to meet capital expenditure as well as brownfield expansion, resulting in 'anaemic' demand for bank loans, State Bank of India (SBI) chairman CS Setty said at an event on Monday. He added that a slowdown in corporate credit is mainly due to lack of demand.
United States Secretary of State Marco Rubio on Thursday (local time) hailed India as 'one of the top relationships that the US has in the world today' during the Senate confirmation hearing for Sergio Gor, US President Donald Trump's nominee for US Ambassador to India.
Fitch Ratings on Thursday cut India's GDP growth estimate by 10 basis points to 6.4 per cent for the current fiscal, but retained the projections for the next financial year, on concerns over a 'severe' escalation in global trade war. "It is hard to predict US trade policy with any confidence. Massive policy uncertainty is hurting business investment prospects, equity price falls are reducing household wealth, and US exporters will be hit by retaliation," Fitch said in its special update to quarterly Global Economic Outlook (GEO).
Growth was 11.1 per cent in the first quarter, 11.9 per cent in the second, 11.5 per cent in the third but slowed down to 11.2 per cent in the fourth, according to figures released at a press conference in Beijing by NBS head Xie Fuzhan. China's red hot economy has continued to expand at a fast pace, despite a slew of measures including frequent hikes in interest rates and in the proportion of funds banks must hold in reserve, to cool it.
Reserve Bank of India (RBI)Governor Sanjay Malhotra on Friday said it was not the regulator's job to take decisions for bank boards, speaking in the context of the wide range of enabling reforms announced for lenders during the October monetary policy review, and emphasised that financial stability remained the regulator's focus.
'An asset must generate income. Equities yield dividends, bonds pay coupons, deposits give interest, and real estate earns rent.' 'Gold, silver, and even Bitcoin produce no income, they merely store value. So, they should not be compared to productive assets.'
The recipe for Indian higher education institutions to succeed in the global markets is excellence in academics, promoting contemporary socially relevant material, and enabling individuals (learners) to realise their full potential, suggests N Ravichandran.
Investors who constantly hop between 'top-performing' funds often end up earning far lower returns than the very funds they invest in -- simply because they enter late and exit early. Best investors don't chase returns, they chase discipline, says Ramalingam Kalirajan.
India's housing finance sector is riding a wave of post-pandemic revival, driven by policy support, digital innovation, and growing demand from younger homebuyers in emerging cities.
Top carmakers led by Maruti Suzuki, Mahindra & Mahindra, Tata Motors Passenger Vehicles and Kia India on Saturday reported record sales in the domestic market riding on festive demand boosted by GST rate cut. Other manufacturers such as Skoda Auto India and Toyota Kirloskar Motor also posted impressive growth in sales in October.
'Stopping now would defeat the core purpose of an SIP, which is to average out the purchase cost over market cycles.'
These changes certainly bring India's GST a lot closer to what an ideal GST would look like, points out Karan Bhasin.
Monetary policy easing in India puts it out of step with the United States, the world's largest economy, where interest rates are expected to rise later this year
'...then preparing oneself for the long haul is also essential.' 'Identifying and holding onto values gives you strength to withstand the difficulties enroute.' 'Taking care of your physical, mental, and intellectual well-being gives you the strength to stay the path.'
Chinese manufacturing prowess and its dominance in the strategic sector will have a bearing on India's growth projection in the medium term and its march to become a developed nation by 2047, the Economic Survey said on Friday. The Survey has said India needs to grow at 8 per cent for about two decades to become a developed nation by 2047, but it will have to face challenges from global developments and reliance on Chinese imports.
China's GDP took the worst hit since the disastrous Cultural Revolution in 1976, plummeting by 6.8 per cent in the first quarter of 2020 as the country took unprecedented measures to fight the coronavirus pandemic that brought the world's second largest economy to a standstill. China's gross domestic product stood at 20.65 trillion yuan (USD 2.91 trillion, approx) in the first quarter of 2020 amid the Covid-19 impact, down 6.8 per cent year on year, China's National Bureau of Statistics (NBS) said on Friday.
Plans for big bang reforms in the GST regime by Diwali, the Putin-Trump summit and S&P upgrading India's sovereign credit rating are likely to instil optimism in the domestic equity market in the week ahead, analysts said. Besides, trends in global markets and the trading activity of foreign investors would also impact domestic investors' sentiment.
India's exports contracted 11.8 per cent to $34.38 billion in October, showed government data released on Monday. Imports jumped 16.63 per cent to $76.06 billion.
'The US reciprocal tariff has added another element of uncertainty and the central bank may prefer to wait and get further clarity.'
By enabling, not colluding, with the private sector, the government can drive growth and deliver social protection on a much larger scale.
India sent an aquanaut 5,000 metres deep into the ocean in a first-of-its-kind expedition in partnership with France, as part of preparations for India's ambitious Deep Ocean Mission.
The value of mergers and acquisitions in India has more than quadrupled to a record 18.3 billion dollars this year.
'First-time or conservative investors should avoid narrow sectoral funds.'
The services sector employs 188 million people but remains highly informal, trapping most workers in low-wage jobs without social protection.
'When you compare Bihar's poverty from its earlier times, then there is a huge difference. Things have improved a lot. And migration has played an important role in reducing poverty.'
The country has already laid down a 'red carpet' for businesses.
If he cannot do it this term by using his bureaucracy and experts from different fields, it will be a tragedy, asserts Ramesh Menon.
Finance Minister Nirmala Sitharaman on Friday said the world is facing "profound imbalances" in trade and energy security, and is undergoing a structural transformation, with India standing out as a 'stabilising force' that can withstand external shocks.
India's exports grew 6.74 per cent to $36.38 billion in September, while imports jumped 16.6 per cent, widening the trade deficit to $31.15 billion, the highest in over a year. The increase in inbound shipments of gold, fertiliser and silver has pushed the country's imports in September to $68.53 billion against $58.74 billion in the same month last year, official data released on Wednesday showed.
Electric vehicle (EV) manufacturers breathed a sigh of relief after the GST Council on Wednesday night retained the concessional 5 per cent rate on EVs, though they now face competition from small petrol and diesel cars, which will attract a lower 18 per cent levy.
The repo rate cut by 25 basis points by the monetary policy committee (MPC) of RBI announced Friday will give a long-awaited relief on interest rates and also be supportive of economic growth, according to experts. Repo rate is the interest rate at which the RBI lends money to commercial banks.
'I disagree with much of Modi's politics, but it cannot be denied that in these years in office, he has carved more than a niche for himself in history,' points out Nilanjan Mukhopadhyay, author, Narendra Modi: The Man, The Times.
Officials from both India and the US in the recent past have indicated that a "fair deal" will be concluded soon, with Indian officials holding that more formal rounds of talks are not needed.
Addressing the nation on 79th Independence Day, Modi said the time has come to undertake reforms in GST as the indirect tax regime has completed 8 years.
Prime Minister Narendra Modi emphasized the strong partnership between India and the UK, highlighting its importance for global stability and economic progress amidst global uncertainty. Discussions covered trade, defense cooperation, and geopolitical issues.
Colliers reports that GCC leasing has jumped from 4.6 million square feet in 2021 and is expected to hit 10.6 million square feet by 2025 -- a clear sign that multinationals see Bengaluru as a long-term base.
The 50 per cent US tariff on Indian goods pose a downside risk to growth but the impact is expected to be short-lived for the economy, and consumption demand could see an uptick after the new goods and service tax (GST) rates are implemented which could even offset the external uncertainty, Chief Economic Advisor (CEA) V Anantha Nageswaran reckoned on Friday.
The next government in these states may find it tough to push economic growth through long-term reforms, which would be necessary.
Brave statements such as we will continue to be the fastest growing large country are of no consolation, because the direction of trade also determines the flow of investment, points out M Govinda Rao.
