Page 4 - Indian Economy

External situation worsens as India aims to grow 6-6.8% in FY24

India may have to hugely rely on domestic consumption to drive growth as the external environment as cited above is facing a slowdown

Policy dilemma

Central banks must focus on inflation

Govt taking steps to make India $5 trn economy 'at an early date': FinMin

The government on Tuesday informed the Rajya Sabha that it is taking steps to make India a USD 5 trillion economy earlier than the International Monetary Fund's forecast year of 2026-27. The IMF's World Economic Outlook earlier said the size of the Indian economy will increase from USD 3.2 trillion in 2021-22 to USD 3.5 trillion in 2022-23 and cross USD 5 trillion in 2026-27. "The government has been taking steps to make the country a USD 5 trillion economy at an early date," Minister of State for Finance Pankaj Chaudhary said in a written reply to the Upper House. Observing that the outbreak of the COVID pandemic in 2020 and the Russia-Ukraine conflict in 2022 has impacted the world output, increased inflation in several countries and raised uncertainty in the world economy, he said, "lower uncertainty in the global economic outlook will help India become a USD 5 trillion-dollar economy earlier". Some of the important measures taken by the government in the past to boost economic

Unprecedented spike in inflation spurs calls for urgent data revision

Consumer prices rose 6.44% in February, breaching the Reserve Bank of India's target ceiling

Fiscal slippage in FY23 likely as govt seeks to spend Rs 1.5 trillion more

The additional spending demands are led by fertiliser subsidy, defence pensions, allocation for Universal Service Obligation Fund (USOF) and GST compensation to states and UTs

India's economic recovery to help improve credit quality of fincos: S&P

However, the improvement will not be uniform; stronger firms will likely gain market share, weaker ones may resort to originate-and-distribute business models to tide over liquidity stress

India's GDP growth forecast at 7% in FY23 and 6% for FY24: Acuite Ratings

Credit rating agency Acuite Ratings & Research on Monday reiterated its forecast of Indian gross domestic product (GDP) growth at 7 per cent for FY23.

Inflation expected to come down over the year: RBI MPC member Ashima Goyal

Inflation is expected to come down over the year, RBI Monetary Policy Committee (MPC) member Ashima Goyal said on Sunday, asserting that the government's supply-side action coordinated with a flexible inflation-targeting regime has kept the rate of price rise lower than that in other countries. Goyal said that India has successfully dealt with 'pluri-shocks' over the past three years, showing considerable resilience. "Inflation rates are expected to come down over the year. "Government supply-side action coordinated with a flexible inflation targeting regime has kept Indian inflation rates lower than other countries and our own past averages even in this period of major adverse external supply shocks," she told PTI in a telephonic interview. She was asked whether high inflation become the norm in India. "Since nominal policy rates rise with inflation to maintain an expected real positive rate under inflation targeting this prevents demand over-heating and anchors inflation ...

Centre tightens regulations for states' capital expenditure loans

Centre's move aims to ensure effective utilisation of funds

From debt to equity: Why are India's 'national champions' changing tack?

Among reasons for the shift could be higher cost of servicing debt, bond holders' risk awareness making roll-over option expensive at the time of repayment, and reputation issues, writes T N Ninan

Industrial production growth perks up slightly to 5.2% in January

The manufacturing sector's output grew 3.7 per cent in January 2023 from 1.9 per cent a year ago

India's forex reserves increase, snapping four-week losing streak

The reserves stood at $560.94 billion in the week to Feb 24

Why falling prices of onions and potatoes are distressing farmers

Prices of these three commodities have seen perhaps the wildest fluctuations in agriculture commodities among all crops for multiple reasons

Q3 GDP numbers: Taking a look at some high-frequency indicators

The govt contends that Q3 GDP will be revised upwards. Many experts believe rural economic growth is still slow. Data shows both could be right

Dealmakers in India should expect another strong year for M&As: JPMorgan

It's unlikely for the country to repeat such a high mark this year, there will be decent deal flow to keep the bankers busy, said Nitin Maheshwari, JPMorgan's head of M&A for India

Saving lives and livelihoods during Covid-19 pandemic

A Stanford University report assesses economic impact of India's vaccination and related measures

Private sector should increase investments, benefit from Budget: Modi

Trust and expectation have replaced doubt in discussions about Indian economy, he says

India is not immune to the stagflation that felled its neighbours

Not much help is expected from the global economy. Financial conditions are tight almost everywhere, and demand tepid

Difference between investment rate in nominal and real terms widening

The difference between the real and nominal GFCF rates was five percentage points. The difference stood at over 5% in the previous two quarters of the current financial year

India can become 3rd largest world economy by skilling youth, says PM

Prime Minister Narendra Modi on Monday said skilling the youth holds the key to India becoming the third-largest economy in the world from the fifth now. Virtually addressing a "Rozgar Mela", or employment fair, organised by the Gujarat government at the Mahatma Mandir convention centre in Gandhinagar, Modi said nearly 1.5 lakh youth were given government jobs in the state during the last five years. The PM emphasised on the need to create a skilled workforce on a large scale to tap growing opportunities in various sectors. "For the new opportunities being created in the country, we need to create skilled manpower on a large scale. India can achieve the target of becoming the third-largest economy only by skilling its youth," he said. India became the world's fifth-largest economy last year. Modi said nearly 18 lakh youths received jobs through employment exchanges during the last few years in his home state of Gujarat, ruled by the Bharatiya Janata Party (BJP). "During the ..