BUSINESS
RBI doubles down to ward off complacency as long rate pause gets longer
RBI Monetary Policy: While the Monetary Policy Committee's decision to keep the repo rate at 6.5 percent for the fourth meeting in a row was widely expected, the central bank's hawkishness is pushing the markets to postpone their rate-cut calls
BUSINESS
RBI retains GDP growth forecast of 6.5% for FY24 and FY25
RBI Monetary Policy: The Indian central bank's growth forecast for 2024-25 assumes a normal monsoon and no major exogenous or policy shocks next year
BUSINESS
RBI makes no change to FY24 inflation forecast, implies sub-5% CPI in September
RBI Monetary Policy: Headline retail inflation has averaged 7.1 percent in July-August, well above the upper bound of the central bank's tolerance range of 2-6 percent
BUSINESS
Centre's FY24 finances get unexpected boost from direct tax collections in August
The huge turnaround in collections of corporate tax and personal income tax during the month of August has made the government's fiscal deficit target of 5.9 percent of GDP significantly more feasible
BUSINESS
Would have transferred full surplus to govt had I become RBI Governor: Subhash Chandra Garg
With the former Finance Secretary's new book kicking up a storm, Garg spoke to Moneycontrol on the battle between the government and the Reserve Bank of India over the latter’s surplus distribution policy, shedding light on a key factor that led to him being transferred from the Finance Ministry in July 2019
BUSINESS
Businesses' one-year CPI inflation forecast jumped to 5% in August: IIM survey
While firms' forecast for headline retail inflation one year down the line shot up, their inflation expectations were unchanged at 4.31 percent in August
BUSINESS
India needs 8% growth, more female workers to become developed nation: World Bank economist
According to Auguste Kouame, World Bank's Country Director for India, there is "almost zero risk" of India missing its fiscal deficit target on account of the upcoming elections
BUSINESS
World Bank retains India FY24 growth forecast at 6.3%, warns of global challenges
World Bank forecasts India's GDP growth: In its India Development Update, released on October 3, the World Bank said it expects India's growth to edge up marginally in the next two years to 6.4 percent and 6.5 percent
TRENDS
'We also make policy' - Subhash Chandra Garg lifts lid on finance ministers, govt-RBI tussle
In his new book, the former finance secretary gives the gory details on the battles he fought with the Reserve Bank of India as well as the finance ministers he served under, including incumbent Nirmala Sitharaman
BUSINESS
Govt raises interest rate on one small savings scheme by 20 bps for Oct-Dec
The government had, on June 30, increased interest rates on small savings schemes by 10-30 basis points for July-September
BUSINESS
India's April-August fiscal deficit widens to Rs 6.43 lakh crore but tax collections surge
The government's fiscal deficit for only August, was Rs 37,233 crore, down 81 percent from the same month of the previous year, as tax collections surged
BUSINESS
Remittances hit 4-quarter low in April-June, but no issues seen in CAD financing
According to data released on September 28 by the Reserve Bank of India, India's Current Account Deficit surged to $9.2 billion in the first quarter of 2023-24
BUSINESS
CareEdge enters sovereign ratings biz with eye on emerging market issues
CareEdge's sovereign ratings will broadly follow the methodology of the global agencies, but will look to capture the nuances of emerging economies, such as the size of an economy, investment-to-GDP ratio, and per capita income in Purchasing Power Parity terms
BUSINESS
Fin Min leaves H2 FY24 borrow plan unchanged, to issue bonds worth Rs 6.55 lakh crore
The Budget presented on February 1 had said the government aimed to borrow a record Rs 15.43 lakh crore through the issuance of bonds in 2023-24
BUSINESS
Five key implications of JPMorgan's India bond index inclusion
India has been pushing for the inclusion of its sovereign debt on global bond indices for a decade. With that pursuit now successful, Indian authorities must get ready for the benefits that will follow – and a few challenges
BUSINESS
Larry Summers says world watching MDBs, last chance for them to make changes
Speaking at a session organised by the Ministry of Finance's Department of Economic Affairs and the Confederation of Indian Industry in New Delhi, the former US Treasury Secretary also said India has the potential to grow at 8 percent per year until 2050
BUSINESS
Must ensure rupee stays competitive post bond index inclusion: CEA Nageswaran
According to economists, the inclusion of Indian government bonds in JPMorgan's global indices could result in inflows of as much as $30 billion. This would exert upward pressure on the Indian rupee.
BUSINESS
A decade in the making, India's global bond index inclusion journey finally ends
The announcement by JPMorgan in the early hours of September 22, that Indian government bonds will be included in its Government Bond Index-Emerging Markets index suite starting June 2024, has ended one of the great pursuits of the Narendra Modi government
BUSINESS
JPMorgan inclusion improves chances of Indian bonds getting into Bloomberg index
According to Gaura Sen Gupta, India economist at IDFC First Bank, the inclusion of Indian government bonds in global bond indices could lead to demand for bonds exceeding their supply by nearly Rs 1 lakh crore in 2024-25
BUSINESS
Fin Min rejects concerns about falling household savings, says assets ‘still growing’
The response from the Finance Ministry comes after Reserve Bank of India data showed net financial savings of households, as a percentage of GDP, fell to a near-five-decade low in 2022-23
BUSINESS
India Ratings hikes FY24 growth forecast to 6.2%, but sounds consumption warning
According to economists from India Ratings, there is a disconnect between the headline and underlying consumption data, with a clear K-shaped demand making it unlikely that the current overall trend will continue for long
BUSINESS
Fin Min unlikely to change borrowing plan for second half of FY24
According to sources, the government sees no reason to lower its plan to borrow Rs 6.55 lakh in October 2023-March 2024. Any reduction in borrowing could be done at a later date once there is certainty about revenues.
BUSINESS
Households' net savings hit multi-decade low in FY23
According to data released by the Reserve Bank of India on September 18, net financial savings of households in 2022-23 was 19 percent lower compared to the previous year
BUSINESS
RBI Bulletin: Shift to OPS by states would be ‘fiscally unsustainable’, big step back
According to an analysis by economists from the Reserve Bank of India, the fiscal burden on states from reverting to the Old Pension Scheme will be around four-and-a-half-times that of the National Pension System
