It offers a lot of opportunities, especially in the commodities market.
India's current account deficit is expected to deteriorate in the current fiscal on account of costlier imports and tepid merchandise exports, according to the Finance Ministry's monthly economic review. The review released on Thursday by the ministry also said that global headwinds would continue to pose a downside risk to growth as crude oil and edibles, which have driven inflation in India, remain major imported components in the consumption basket. For the present, it said, "their global prices have softened, as fears of recession have dampened prices somewhat. This would weaken inflationary pressures in India and rein in inflation."
RBi pushes for reinvigorating private investments, clearing infra bottlenecks and providing big thrust to Pradhan Mantri Awas Yojana.
The government is planning to utilize $5 billion worth of foreign exchange reserves for infrastructure development this fiscal.
With RBI's repo rate cut and strong macroeconomic fundamentals like benign inflation, strong forex reserves and stable rupee, GDP growth is expected to be higher and interest rates are poised to touch new lows, PNB Gilts has said.
India's top financial bureaucrat denied on Monday that the government was seeking dollar loans to repay some of its offshore debt.
In comparison to other asset classes, globally, gold rallied significantly after many years to deliver 18.4 per cent returns in 2019.
In the face of burgeoning forex reserves at over $93 billion, the government has quietly prepaid $1.4 billion worth of costly foreign loans to World Bank and Asian Development Bank.
Foreign investments in India almost tripled in FY' 08 than the capital it received during the same period in last fiscal, the National Council of Applied Economic Research said. The country maintained the trend of attracting funds that also boosted its forex reserves, it added.
A strong economic position, low inflation and interest rates, and high forex reserves can boost financial sector reforms and accelerate growth by 2-3% in the medium term, RBI Governor Bimal Jalan said on Saturday.
Today, they can't meet even the piffling capital norm set by Mint Road - Rs 5 crore for partnerships and Rs 10 crore for public and private firms in this line of business. Bulk of the trades are put through e-platform offerings of Reuters, Bloomberg, JPMorgan, Barclays or Deutsche Bank. And they have the web-based FXall, FXconnect, Atriax, Hotspotfx and LavaFX for company.
Many analysts were surprised at the speed with which India bought the IMF gold. However, they believe that it is a very smart move as by buying IMF gold, New Delhi is shoring up its bullion reserves and slowly trying to hedge its bets on the US dollar which has been losing value against other currencies.
The Enforcement Directorate (ED) on Friday said it has issued show-cause notices to the Indian arm of Chinese mobile phone manufacturer Xiaomi, its chief financial officer and director Sameer B Rao, former managing director Manu Kumar Jain and three foreign banks for alleged violations of the foreign exchange law to the tune of more than Rs 5,551 crore.
India owes $230.85 billion to the external world as debt as on December 31, 2008, which is slightly less than $254.6 billion of forex reserves the country enjoyed at that point of time.
Finance Minister P Chidambaram categorically said that India continues to remain a growth story, and asked retail investors to make "informed judgements" while dealing in the stock market.
India's current account deficit (CAD) is likely to ease to 4.4 per cent of the GDP in the current fiscal year on lower oil and gold prices, Bank of America Merrill Lynch (BofA-ML)said in a research note.
Bangladesh Prime Minister Sheikh Hasina is expected to travel to India on September 5 on a three-day official visit during which defence cooperation and regional stability are likely to be the focus of her talks with Indian counterpart Narendra Modi, an official said on Monday.
Economist Jayati Ghosh noted that the word 'freebies' indicates the class position of those who use it.
Deputy Prime Minister Lal Kishenchand Advani on Thursday admitted that the 'feel good' factor in Indian economy is yet to spread to the farming sector.
India's current account slipped into a deficit of $9.6 billion or 1.3 per cent of GDP in the September quarter, the Reserve Bank said on Friday. The current account, which records the value of exports and imports of both goods and services along with international transfers of capital, was in a surplus mode both in the quarter-ago and year-ago periods. India's current account surplus had stood at $6.6 billion or 0.9 per cent of GDP in the April-June 2021 quarter, while in the year-ago period (Q2FY22), the surplus had stood at $15.3 billion or 2.4 per cent of the GDP, the data said.
Rejecting World Bank's warning of growth and fiscal slippages, the government said on Monday that the banks prediction that India needs major reforms thrust to achieve eight per cent growth was indeed unfortunate.
The report said the import cover has gone down to seven months, last seen in 1998 and hence, RBI will focus on recouping the reserves.
'She delivers on promises, especially on security issues which is a core concern for India.'
The government expects non-resident Indians to pump in about $500 billion into the burgeoning forex reserves of the country in the next 10 years, making them the single largest source of foreign receipts.
The government will move fast towards a more liberal forex regime in the backdrop of a record foreign exchange reserves of 68 billion dollar and fresh inflow of $500 million a week, Finance Minister Jaswant Singh said.
Emerging nations have discussed delinking the quotas from the governance reforms to facilitate its passage.
Exchange-traded currency derivatives volumes are likely to drop in view of new Reserve Bank of India (RBI) rules, casting a cloud over further participation of retail investors and proprietary traders. There are concerns that existing positions without any underlying exposure will need to be liquidated. Also, weighed down by dollar demand from local oil companies and weakness in its Asian peers, the rupee on Wednesday (April 3) ended at a new closing low of 83.44 versus the US currency.
The government on Friday warned that fiscal deficit was hindering growth despite strong economic situation prevailing now with high forex reserves, surplus food-grains and low inflation, while asking regulators to plug the loopholes to make the marke
'When the gold price rises rapidly, India's physical gold market remains on standby.'
Foreign brokerage HSBC has said it expects the rupee to trade at 60-levels by December against the dollar even though risks on the domestic unit from both external and domestic fronts have increased.
For the banking system a new cycle starts in FY2024. It's fraught with fresh challenges on asset quality and profitability, warns Tamal Bandyopadhyay.
Forex inflows may slow down and banks may be deprived of cheap funds if the government accepts Reserve Bank of India's suggestion to tax non-resident Indian deposits, bankers warned on Wednesday.
As part of efforts to boost Indo-US trade ties, a high-level American delegation led by president and CEO of US Chamber of Commerce Thomas J Donahue will visit India on Tuesday for a meeting with the Confederation of Indian Industry.\n\n\n\n
Overseas investors have pulled out a net Rs 1,14,855.97 crore from the Indian markets in the current year so far, amid heightened geopolitical tensions and inflation concerns. Foreign portfolio investors have sold domestic equities worth Rs 48,261.65 crore so far this month, taking the year-to-date tally this year to a massive Rs 114,855.97 crore, according to depositories data. The exodus of foreign investors was largely owing to inflationary pressures and deepening global macroeconomic conditions following the Russia-Ukraine war, experts said.
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