Dr Rakesh Mohan, former RBI deputy governor, and Dr Pronab Sen, former chairman of the Indian Statistical Commission discuss the issues facing the Indian rural and manufacturing sectors and what the government must possibly do to improve demand and perk up the Indian economy
'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.
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 reserves rose to $501.70 billion helped by a whopping rise in foreign currency assets, the latest data from the Reserve Bank of India.
Record liquidity infusion by the central bank in the banking system during the financial year 2020-21 amid sluggish economic activity resulted in banks investing more in safe government papers than in extending loans, data from Reserve Bank of India (RBI) showed. This trend has not been seen in nearly two decades, barring 2016 - the year of demonetisation.
I-T dept investigating black money angle; FM hints against bailout for bourse's investors.
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.
Gold prices plunged by Rs 200 to trade at Rs 27,000 per 10 grams at the bullion market on Thursday.
'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.
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.
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 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.
Does Abhijit Banerjee's Nobel Prize help India reduce extreme poverty, asks Rajeev Srinivasan.
After his previous visit, the Sensex crashed and it took four painful years to top the 21,000 mark.
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.
Markets may have initially cheered the FM's static borrowing numbers, but the picture may not be as rosy.
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.
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.
Weakness in the greenback overseas against the backdrop of sluggish US macro data outcome helped the home currency move higher
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.
Sensex remained volatile through the day.
Silver managed to recover some grounds.
Almost 40 per cent of a durable company's sales are achieved during the festival season
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.
Gold advanced one per cent to $1,212.21 an ounce in Singapore.
'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.
Silver also dropped by Rs 300 to Rs 38,400 per kg.
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.
Rupee is seen to remain in the range of 67.50-68.80 in the short-term
'Course correction today would be good politics and also good economics,' notes T N Ninan.
The Kabuliwalas of Kolkata, traditional moneylenders, have seen their numbers shrink.
There is merit in considering whether merchandise exports can be facilitated by halting if not reversing the rupee's appreciation, says T N Ninan.
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.
The global economy is fragile now. It continues to face both long-term and short-term issues.
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