Page 41 - Indian Economy

India's CAD may have breached 3% of GDP in Q1 on surge in imports

Analysts peg full-year figure at $120 bn, but say it will be lower as proportion of GDP than FY13 levels

How is the Indian economy really doing?

All the heady optimism has overlooked the vulnerable state of the macro-economy. Caution, not complacency, is the more appropriate sentiment for now

RBI policy: Here is how a repo rate hike can affect your finances

If RBI increases the repo rate, the cost of borrowing by banks also rises, which subsequently makes taking loans from banks costlier

India's potash facing demand destruction as world reels from high prices

Potash consumption will probably fall to 3 million tons in the year through March 2023 from 5 million a year earlier

Hawkish Fed may prompt Reserve Bank to deliver a 50-basis-point hike

The RBI's monetary policy committee (MPC) has already hiked the key policy rate by 140 bps since May to 5.4%

India rules out tax policy changes for inclusion of bonds in global indices

The government doesn't plan to waive capital gains taxes, and it's concerned that foreign inflows will increase the volatility of local markets

Oops! Wrong Hyundai. Govt's industrial policy misfires again with PLI gaffe

Picking the wrong Hyundai is just embarrassing. Going down a protectionist path reminiscent of the country's own, impoverished socialist past is the bigger folly

MPC meeting: Prudent policy path need of the hour

RBI should review its currency management

Only request to PM Modi is to stop rupee from scoring century: Congress

?? The Congress on Tuesday attacked the Centre over the depreciating value of the rupee against the dollar and said the only request to Prime Minister Narendra Modi is to stop the rupee from scoring a century. The rupee appreciated 37 paise to 81.30 against the US dollar in early trade on Tuesday while consolidating in a narrow range and settling 9 paise higher at 81.58 (provisional) against the US dollar on Tuesday. Addressing a press conference at the party headquarters here, Congress spokesperson Supriya Shrinate said for the first time in history, the rupee is racing fast towards 82 against the dollar. "With Modi Ji's blessings, the rupee has become the weakest in history and he who claimed (before coming to power) the fall in the value of rupee is directly linked to fall in prime minister's credibility must realise his own credibility is in a bottomless pit," Shrinate said. Exactly a year ago, in September 2021, the value of the rupee was 73 against USD 1, which has now increa

Even at $100 bn, FDI may not be sufficient to finance ballooning CAD

CAD is expected to hit a decadal high of 3.8% of GDP, or $130.5 bn; to make matters worse, FDI inflows expected are on gross basis and net inflows would be much lower than $100 bn

'India has fairly large forex reserve to deal with current situation'

Economic affairs secretary Ajay Seth on Tuesday dismissed the concerns over depletion of forex reserve as "overblown" and said India has fairly large reserve to tide over the current situation. Foreign exchange reserves were down for a seventh continuous week, dropping to USD 545.65 billion on September 16. The reserves, which have been dipping as the central bank deploys the kitty to defend the currency amid a pressure caused majorly by global developments, had declined by USD 2.23 billion to USD 550.87 billion in the previous week. "There has been a depletion as inflows have come down and trade deficit is higher...I don't see this as a concern, India has fairly large reserves to tide over this situation," Seth said. After hitting a record low at 81.67 against dollar on Monday, the rupee recovered on Tuesday and closed at 81.58 against the greenback. Finance minister Nirmala Sitharaman on Monday had said "due to the strength of our microeconomic fundamentals, rupee is holding out

CAD may jump over 5% of GDP in Q2FY23, relief likely in the next fiscal

The current account deficit may have widened to 3.4% of the gross domestic product in the first quarter against a surplus of 0.9% a year ago

Govt bans mapping and export of sensitive locations under data regime

The central government has released a list of economic and national security-related strategic and sensitive locations that cannot be mapped and exported

Top headlines: Car makers eye pre-Covid profits, Air India's market share

Optical fibre cable (OFC) manufacturers are bracing to meet a multifold increase in fiberisation, aggressively tap global markets to power 5G services, and cope with demand from fibre-to-the home

Robust demand for luxury products exposes widening inequality in India

Consumer-goods makers are reporting robust demand for items priced nearly $2,000 in a nation where per-capita income is just a tad above that level

Recovery deep dive: Top 5 states bag lion's share in formal jobs post Covid

India's post-pandemic recovery appears to be shaping up like the letter K. In a three-part series, Business Standard illustrates how the K-shaped recovery is widening the inequality among states

Foreign trade policy extended by six months amid global headwinds

An FTP is an elaborate policy guideline and a strategy to promote export of goods and services

Recovery tracker: Power generation, consumption lower than before

Decline also seen in vehicle registrations, railway freight growth

Indian economy showing resilience and recovery, says CEA Nageswaran

Chief Economic Advisor (CEA) V Anantha Nageswaran on Monday said the Indian economy was on the path to recovery but cautioned that foreign investors may remain cautious because of geopolitical challenges. Speaking at a virtual seminar organised by Swadeshi Research Institute, he said all sectors of the economy such as agriculture, manufacturing and construction are "doing well". "The Indian economy is showing resilience and on the path to recovery. Private demand and the services sector are doing better than expected," he said. Private capital formation is taking place, while foreign direct investment (FDI) flow is keeping steady, he said. However, there are challenges, and geopolitics is messy for which foreign investors are cautious, the CEA said. Noting that India has a "well-capitalised banking sector", the economist said, the Insolvency and Bankruptcy Code (IBC) also played a big part in "improving the health of the banking system" which had high NPAs due to the financial cri

OECD, S&P keep India's economic growth forecasts unchanged for FY23

S&P noted that India's domestic recovery from Covid-19 would continue to support growth in FY23