With industrial production contracting by 0.4 per cent in October, for the first time in 15 years, and the exports declining by over 12 per cent during the month, the government came out with a stimulus package on December 7 to spur growth and help the industry combat the impact of global financial meltdown. As part of the stimulus package, the government cut excise duty by 4 per cent across the board, except on petroleum products.
The government had, in the budget, targeted fiscal deficit to come down to 2.5 per cent of GDP this fiscal, although it was 3 per cent under the Fiscal Responsibility and Budget Management Act.
Starting today, Modi and top officials in the Prime Minister's Office will be briefed by various central ministries and departments on their plans as well as agenda for the next five years. They will also apprise the PMO of the work they have done so far in realising the agenda of government's second term in office.
To boost Make in India in defence production, Finance Minister Nirmala Sitharaman on Saturday said foreign direct investment limit in defence manufacturing will be hiked to 74 per cent from 49 per cent while some weapons and platforms will be banned for imports.
It will save or create more than 3.5 million jobs over the next two years, ignite spending by business and consumers alike, and lay a new foundation for our lasting economic growth and prosperity, Obama said. "This is a major milestone on our road to recovery," he said and thanked US lawmakers for making this happen, even if he failed to get any major support from the opposition Republican members.
Favouring 'aggressive action' to boost the shaky American economy, House Speaker Nancy Pelosi has proposed a two-stage effort with a $60-100 billion stimulus package this month followed early next year by a 'permanent tax cut'.
We may now be experiencing the darker side of the massive monetary stimulus of past years, said Rajan.
As Barack Obama landed in Washington from his home town Chicago, the US media reported that the President-elect plans to announce a massive tax cut for the middle class and business.
'What criteria is GoI (government of India) using to judge how long the lockdown is to continue...'
The BSE benchmark Sensex on Wednesday plunged about 275 points to close at 25,246 on across-the-board selling as costlier oil due to rising conflict in Iraq threatens to hurt the India economy.
Morgan Stanley removed banking stocks from its model portfolio when it slashed its weighting on the sector by 500 basis points. Several foreign brokerages, such as UBS, JP Morgan, and Credit Suisse, of late, have also become less optimistic about banking stocks.
Risk aversion is currently a dominant depressant to economic recovery, points out Shankar Acharya, former chief economic advisor to the Government of India.
Gold, which was hovering around $1,321 an ounce in January 2019, has already breached $1,600 per ounce in the past few sessions to a seven-year high.
Addressing the Congress Working Committee, the president of the party said, ""Misfortunes do not come singly. India has been hit by a terrible economic crisis, a pandemic of huge proportions and, now, by a full-blown crisis on the borders with China. Much of each crisis is attributable to the mismanagement of the BJP-led National Democratic Alliance government and the wrong policies pursued by it."
The 50-share NSE Nifty closed lower by 19.25 points, or 0.19 per cent at 10,121.90
It had upped India's rating to Baa2 from Baa3 and changed its rating outlook to 'stable' from 'positive', saying the reforms would help stabilise rising levels of debt.
'This pandemic has given him a new platform to perform,' says a member of the government. 'He should feel lucky that he has got an opportunity now to demonstrate to the world his original talent.' 'He needs a visionary script to perform.' Sheela Bhatt reports on the politics of the pandemic.
A hot sale of a Chinese product, whether assembled in India or anywhere else in the world, may make the country of origin rule fall by the wayside. Moreover, its execution is challenging for businesses as there are no clear guidelines or definitions from the authorities on what constitutes 'country of origin'.
'Stick to the known quality names, avoid short term thinking and don't be in a hurry to book profits on your winners.'
It fell 11 per cent in 2013, its third successive annual loss.
It's simple really.
Marandi was the chief minister of Jharkhand from November 2000 to March 2003.
The government on Monday announced a one-time Rs 10,000 interest-free festival advance to all its officers and employees as part of plans to increase consumer spending to spur demand in the economy.
Investors may increase exposure to mid and small-cap stocks as their risk-reward profile is more attractive currently, suggest Nitin Singh and Vinay Joseph.
The domestic unit had lost 7 paise to close at 66.87 in Tuesday's trade.
President Ram Nath Kovind addressed the nation on the eve of India's 75th Independence Day. Here's the text of what he said:
Fitch Ratings director Thomas Rookmaaker said India's debt-to-GDP ratio is likely to rise to 76 per cent from 70 per cent currently due to wider fiscal deficit and low economic growth.
Instead of a consumption stimulus the government must address the NPA issue with a war footing and invest in infrastructure, affordable housing and exports, says Sanjeev Nayyar.
Increasing the duties on auto parts and putting an additional cess on petrol and diesel could drive up costs of vehicles, specially where volumes are low and localisation is not viable.
'We have to plan for whatever the new normal is.'
The Sensex finally ended down 233 points at 18,541. Nifty ended down 77 points at 5,590.
Many analysts argue with limited space for a fiscal stimulus, the burden of lifting growth lies squarely on monetary policy.
'Nyay scheme will cost between 1.2-1.5 per cent of GDP at its peak.' 'Our nearly $3 trillion economy has the fiscal capacity to absorb this expenditure.'
The rupee has gained by 21 paise or 0.31 per cent in last two days
Market leader Maruti Suzuki sold 51,274 units, down 49.61 per cent from the same month last year. Hyundai Motor sold 21,320 units, a decline of 49.25 per cent and Mahindra & Mahindra sold 8,075 units, down 54.54 per cent.
The 30-share Sensex dropped 68.16 points at 18,664.88 and the 50-share Nifty fell 23.15 points at 5,519.10 levels.
If Chinese growth starts falling, sharply or otherwise, the risk on trade might reverse.
In dollar terms, however, gold prices jumped by 26 per cent this calendar year, following sharp jump in hedge funds' long position
The BSE mid-cap and small-cap indices ended flat against Sensex's 0.4% up-move.
The government has only taken a pause and more measures will be announced in the days to come to help sectors hit by the coronavirus outbreak and also to make India 'Atmanirbhar Bharat', Minister of State for Finance Anurag Thakur said. Since the outbreak of the pandemic, the government has taken several steps to mitigate the hardships of the people due to lockdown and support growth, Thakur told PTI in an interview.
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