India Inc has given the United Progressive Alliance government a 65 per cent score, a shade better than Prime Minister Manmohan Singh's
After two rate hikes in less than six weeks aimed at curbing inflation, RBI Governor Raghuam Rajan on Wednesday said the central bank may be done with interest rate increases as their impact on the economy is assessed.
Expressing disappointment over the RBI's move for not cutting the key policy rates, India Inc on Tuesday asked the government to take immediate action to revive growth and boost investments.
Market participants must appreciate that staying cautious is a virtue for central bankers and should not expect a sudden reversal in the formal monetary policy stance.
International credit rating agency Standard and Poor's has voiced concern over the fiscal deficit of the central and state governments even as it expressed happiness over the strong economic growth momentum.
The economic think-tank in its earlier projection had suggested that the Indian economy was likely to grow at 5.7 per cent in 2014-15.
Encouraged by foreign exchange reserves touching record levels, the Reserve Bank on Tuesday doubled the annual overseas investment ceiling for individuals to $2,50,000.
India might see better growth prospects mainly on account of expectations of significant progress on project approvals as well as the central bank maintaining a delicate balance between inflation and growth.
Although this may not be music to Raghuram Rajan and Viral Acharya's ears, the real reason in my estimation for their quitting is expatriate over-sensitivity, intolerance or arrogance, argues B S Raghavan, the distinguished civil servant.
The report said in the recent months policy makers as well as the private sector have made some efforts to improve productivity.
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.
Giving more freedom to individuals travelling abroad, they may soon be allowed to spend $2 lakh overseas in a year as against the present ceiling of $75,000.
'The economy will pick up in 2020 or a little later... When it picks up, will it reach 10%, 8% or still lower? It all depends on how realistic are the diagnosis and the prescriptions that follow,' says Professor K J Joseph.
This was at a meeting of the Financial Stability and Development Council, chaired by him. Chidambaram, set to resign on Friday to make way for his successor, called upon the regulators and the ministry to be ready and take necessary action.
Pakistan's 'approach is one of getting even, an eye for an eye, or death by a thousand cuts.' 'The entire effort is to be the equal of India. Unfortunately, the reality is that this can never be the case.' 'India will always be the bigger, economically stronger, technologically more self-reliant country.' 'Therein, lies the dilemma Pakistan faces which leads it to perennial enmity with India,' notes Ambassador Gautam Bambawale in the Air Marshal Y V Malse Memorial Lecture 2019.
The rupee has depreciated 2.35 per cent in the past three months and one per cent in the past month, despite strong capital flows and falling oil prices.
The perspective planning division might get a new lease of life.
'We do India great disservice if we continue to perpetuate a flawed narrative on trade, one based on myths rather than facts,' says Hardeep Singh Puri.
The current capital flight is a short-term phenomenon, the agency said.
The year 2014 is likely to be a "slow recovery year" for India, with economic growth rising, inflation easing and currency and rates largely stable, Citigroup said.
'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.
'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.
ADB projected China's growth to decelerate from 7.4 per cent
FPIs, which are holding large exposures in Indian debt, could also be expected to book some capital gains as yields slide down
RBI has brought down forecasts of both year-end inflation and growth.
President Pranab Mukherjee on Thursday cautioned that poor cannot wait for long and they need to get succour "here and now", in remarks that come against the backdrop of demonetisation which, he said, may lead to temporary slowdown of economy.
The status quo decision came as a breather as only last week the RBI had pulled up banks for not helping it in monetary policy transmission.
Repo rate may well end 2013 at 8 per cent, where it had begun the year.
'The rupee falling from 69 to 72 was not normal or justified by the fundamentals.' 'And therefore I treat this as temporary.'
The Reserve Bank on Tuesday said growth is expected to fall below 5 per cent in 2013-14 in absence of pick-up in manufacturing sector, but likely to recover to 5.5 per cent in the next financial year.
RBI Governor Raghuram Rajan, who today surprised markets with a rate hike, defended the move saying a rate cut would not have impacted either banks or borrowers and that bringing down retail prices is the key to sustainable growth.
Policy with regard to the foreign banks is part of his five pillars of reforms, says RBI Governor.
Corporates' forex borrowings have grown at a CAGR of 15.6% since 2008.
The central bank is of the view that rise in external debt a concern but rating outlook revision reassuring.
In India, bond yields have fallen nearly 70 basis points in the last one year.
Moody's listed six agenda on the list of pending reforms -- land acquisition Bill, labour law reforms, significant infrastructure investment, tangible benefit from Make in India initiative, tax administration and PSU bank reforms
Public investment is very crucial for GDP growth, says finance ministry.
Hawkish tone likely to guard rupee from further slide
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