'The new government will have to contend with slowing economic growth, weak private investment, anaemic exports and vulnerable external imbalances, a stressed financial system, mounting fiscal pressures (including high government debt-to-GDP ratios) and an exceptionally bad employment situation,' says Shankar Acharya, former chief economic adviser to the Government of India.
For the current fiscal which ends on March 31, it put the real GDP estimate at 5 per cent. It estimated a 7 per cent growth in 2022-23 and 2023-24 fiscal years. The inflation rate was seen moderating to 4.4 per cent in the next fiscal from 4.7 per cent in the current.
The reserves rose to $501.70 billion helped by a whopping rise in foreign currency assets, the latest data from the Reserve Bank of India.
'The no-rate cut policy and preference to wait for the Budget and clarity on the fiscal front demonstrate RBI Governor Shaktikanta Das is maturing in his new role,' notes Tamal Bandyopadhyay.
If at all it was some great strategy, the delay has only helped the person they eventually arrested.
To provide exporters/importers greater flexibility in risk management, RBI enhanced the limit available to exporters to 50 per cent
The flawed response to the crisis has fed a us-vs-them mentality in which the banker, the expert, the coastal entrepreneur, the immigrant, the foreigner are all villains. The crisis was not that much of a problem; the response -- the over-reaction, the sovereign debt build-up and the lasting anger -- is the problem, says Mihir S Sharma.
The Supreme Court had observed that issues of national economic interest; disclosure of information regarding currency or exchange rates/interest rates/ taxes; regulation or supervision of banking, insurance and other financial institutions; proposals for expenditure or borrowing, and foreign investments, could all, in some cases, harm the national economy, especially if released prematurely.
As West Bengal, Kerala, Assam, Tamil Nadu and Puducherry prepare for new administrations, one is reminded of the disparity that runs through the veins of the Indian states, notes Mihir S Sharma.
I-T dept investigating black money angle; FM hints against bailout for bourse's investors.
Gold prices plunged by Rs 200 to trade at Rs 27,000 per 10 grams at the bullion market on Thursday.
Does Abhijit Banerjee's Nobel Prize help India reduce extreme poverty, asks Rajeev Srinivasan.
Rupee has depreciated against major international currencies since July 2011.
Anand Rathi recently carried out a research on the behaviour of the economy and CAD.
The RBI is understood to be dithering since it would want more clarity on the cost of the fiscal policies the new government would undertake before it decides to cut rates, even though it has pencilled in a lower gross domestic product growth rate for this fiscal year.
Perhaps the calculation is that economic recovery will have been achieved before the next general election comes around, but such assumptions can come unstuck if current directions are not reversed quickly, cautions T N Ninan.
After his previous visit, the Sensex crashed and it took four painful years to top the 21,000 mark.
Markets may have initially cheered the FM's static borrowing numbers, but the picture may not be as rosy.
Weakness in the greenback overseas against the backdrop of sluggish US macro data outcome helped the home currency move higher
For 20 years, the stock market headed nowhere, and this has created permanent aversion.
The country's external debt rose by 13 per cent to $345.8 billion in the 2011-12 fiscal on account of higher commercial borrowings and trade credit.
The central bank operationalised these special windows on September 4 to prop the rupee which had fallen close to 30 per cent between April and August.
Almost 40 per cent of a durable company's sales are achieved during the festival season
Silver managed to recover some grounds.
Sensex remained volatile through the day.
'The Budget will have to be substantially re-cast as soon as a new government takes charge after the elections.' 'Both revenue and expenditure numbers will have to be trimmed -- and then may better reflect the deceleration of economic activity caused by slowing consumption trends,' points out T N Ninan.
A "quick exit" through liquidation for 314 stocks involving a total pledged share value of Rs 1,67,300 crore.
It further said India is facilitating external commercial borrowings by startups in order to encourage innovation and promote ease of doing business.
Top losers in the Sensex pack included TCS, Yes Bank, ITC, Sun Pharma, Reliance, Coal India, Asian Paints, SBI, Maruti, HUL, HCL Tech and ICICI Bank, falling up to 2.91 per cent.
Gold advanced one per cent to $1,212.21 an ounce in Singapore.
Silver also dropped by Rs 300 to Rs 38,400 per kg.
'Course correction today would be good politics and also good economics,' notes T N Ninan.
There is merit in considering whether merchandise exports can be facilitated by halting if not reversing the rupee's appreciation, says T N Ninan.
Rupee is seen to remain in the range of 67.50-68.80 in the short-term
The group companies now lead the market capitalisation league table in sectors such as ports, power generation, gas distribution and transmission, and power transmission and distribution, ahead of incumbents in both public and private sector. This has Gautam Adani family the second wealthiest in business in India.
The Kabuliwalas of Kolkata, traditional moneylenders, have seen their numbers shrink.
The expansion in equity market volumes is driven by retail speculators indulging in heavy trading of complex derivatives that are economically unproductive, say Praveen Chakravarthy and T V Somanathan.
While the positive surprise has been the high growth in agriculture, the negative surprise is in the trade, transport, hotels segment where growth came lower than expected, says Madan Sabnavis.
The global economy is fragile now. It continues to face both long-term and short-term issues.
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