India Ratings on Mondy projected a 7.7 per cent growth this fiscal driven by consumption demand.
At a pre-Budget meeting, the FM was asked to ensure that NBFCs come out of the liquidity crisis they are facing with the help of RBI. They also spoke about the futility of trying to achieve a 3 per cent fiscal deficit target over the medium term.
Revising India's GDP upwards by 0.3 per cent to 6.3 per cent in 2015, Asian Development Bank (ADB) has said the economy shows a new promise of turnaround after the election brought a stable government in May.
There is little evidence that investments are picking up in the private sector or in infrastructure, says Abheek Barua
Inflation is on a declining trend, Eco Survey stated.
The deteriorating situation in China, a market that businesses around the world rely upon for growth, has spooked investors and prompted warnings from top companies like Apple.
'Course correction today would be good politics and also good economics,' notes T N Ninan.
The report said not only was the government's $500 billion infrastructure programme on the back burner, but the spread between private and public sector borrowing costs had widened, which is bad news for private investment spending. CLSA said tax revenues were crashing. It forecast that the public sector deficit, already 11 per cent of the GDP this fiscal year, would rise to 14 per cent in FY09/10.
Anjalika Bardalai, senior economist and editor at Economist Intelligence Unit says fiscal deficit is the biggest downside risk to India's growth story.
Chief Economic Adviser Arvind Subramanian on Thursday said upgrading of India's outlook to positive by Moody's validates the government's reform thrust.
India needs 1.4 million hotel beds a night but has only 2.4 lakh, points out Rahul Pandit, MD and CEO of Ginger Hotels.
While the jury's still out on whether US President Barack Obama's proposed stimulus is the right way to help fix the economy, rising unemployment is something that's likely to trouble the President for many years to come.
Though the summer is expected to be hotter, global and domestic forecasts point to good rains.
A collapse in global oil prices has unleashed a wave of monetary easing.
It is all the more remarkable that this acceleration took place in a period when the dollar was mostly appreciating against other currencies. The fact that imports declined by over 7 per cent meant that the external sector contributed hugely to the acceleration in the growth rate.
Forecasters have been converging in the 7.5-8 per cent range when it comes to growth for the full year, and the first-quarter numbers are consistent with that. Yet, it seems the underlying trend is strong enough to limit the damage caused by the downturn, a factor critical to sustaining investment levels in the economy.
Chief Economic Advisor Arvind Subramanian says that he hopes GDP growth will be at the upper end of the 7-7.5 per cent range.
The Reserve Bank of India has painted a gloomy picture for the economy. A survey conducted by the central bank said India's gross domestic product (GDP) would grow 7.9 per cent this year against the earlier projection of 8.1 per cent.
Drop in oil prices and the government's reform agenda has helped India to be out of the Fragile Five group
Spiralling oil prices will exert huge pressure on India's balance sheet of inflows and outflows of resources resulting in a three-fold increase in the current account deficit to 4.7 per cent of the country's GDP in fiscal ending 2009, a Goldman Sachs report said on Wednesday.
India lost fastest growing major economy tag to China in the March quarter with a GDP growth of 6.1%
Global rating agency Standard and Poor's on Wednesday cautioned that large deficit economies including India could face more economic problems in the near term.
IMF Chief Economist Gita Gopinath also said the pickup in global growth for 2020 remains highly uncertain as it relies on improved growth outcomes for stressed economies like Argentina, Iran, and Turkey and for under-performing emerging and developing economies such as Brazil, India, and Mexico.
A normal monsoon, softer interest rates and inflation, pent-up demand, along with mild budgetary support may help growth pick up in coming quarters.
The Index of Industrial Production (IIP) for July 2007, released on September 12, showed the manufacturing sector decelerated to a growth rate of 7.2 per cent over July 2006, after many months of double-digit growth.
The World Bank now projects Gross Domestic Product growth of 11.3 per cent in 2007, but below 11 per cent in 2008, the World Bank's China Quarterly Update said.
CII on Thursday objected to any mandatory reservation for socially underprivileged in the private sector even as it forecast 8.3 per cent GDP growth target for this financial year.
Listening -- really listening -- to advisers in the government and outside would help. India has plenty of wise economists who have worked within the bureaucracy during previous crises, points out Rahul Jacob.
Many in the US establishment must hope that the crisis would put the brakes on China's growing military might. Well, it ain't gonna happen, says T T Ram Mohan, who was appointed a member of the prime minister's economic advisory council on Wednesday, October 28, 2021.
Rise in vegetable prices can reverse the benefits of low oil prices.
'The finance minister in her Budget speech should spell out how exactly she intends to get back to the 7% track, and the hard decisions she intends to take in order to adjust to the realities of a slowing economy until growth momentum returns,' suggests T N Ninan.
Reserve Bank Governor Shaktikanta Das has pitched for policy support from all sides -- fiscal, monetary and sectoral -- to nurture recovery of the economy hit by the second wave of the coronavirus pandemic. The dent on economic activity due to the second wave of the pandemic during April-May necessitated continuation of monetary measures to support the process of economic recovery to make it durable, Das had said while participating in the meeting of the Monetary Policy Committee (MPC) earlier in the month. "Overall, the second wave of COVID-19 has altered the near-term outlook, and policy support from all sides - fiscal, monetary and sectoral - is required to nurture recovery and expedite return to normalcy," Das said, as per the minutes of the meeting released on Friday.
It can be noted that according to official estimates, GDP growth in FY14 is expected to come in at 4.9 per cent, up from 4.5 per cent in FY13, Icra said.
'The Indian economy is in slowdown and growth may stay slow,' notes Devangshu Datta.
The stock markets, which had opened in the green on rate cut hopes, tumbled after the monetary policy announcement.
Around 15 years ago, when Reliance Industries (RIL) struck natural gas in the Krishna-Godavari (KG) basin off the east coast, the government made plans to supply that fuel cheaply to scores of generators that sprang up in India triggered by the discovery. Most of the plants, which account for 6 per cent of India's total generation capacity, operate sparsely after the KG-D6 area first failed to meet production targets, and then finally shut shop. Affordable domestic gas was why those thermal plants came up and the rate of the fuel today is why those generators hardly operate. Record liquefied natural gas (LNG) rates may yet again unravel India's ambitions to expand use of gas in industries, households and vehicles. Rates, while volatile, may stay strong this decade as developed nations with higher purchasing power embrace gas as the transition fuel.
2019 appears a story of two halves for Indian equities - a more difficult first half might precede a stronger second half, said Abhiram Eleswarapu, bottom, left, Head of India Equity Research, BNP Paribas in an interview with Ashley Coutinho.
The new series claims GDP grew at seven per cent between April and June 2015, while gross value added (GVA) grew at 7.1 per cent.
Stating that a weak fiscal position continues to constrain India's sovereign ratings, Fitch said the next government's medium-term fiscal policy will be of particular importance from a rating perspective.
