Economy 2

Govt leaves interest rates on small savings schemes unchanged for July-Sep

The finance ministry started raising small savings interest rates in October-December 2022 after leaving them unchanged for nine consecutive quarters.

Fiscal deficit sharply narrows to 3% of target in first two months of fiscal

Centre had set a fiscal deficit target of 5.1% of the GDP in the interim budget, and the government now intends to bring the fiscal deficit down to 4.5% of the GDP by FY26.

Are the tailwinds for offshore wind power strong enough?

The central government hopes that the Viability Gap Funding support will bring down the cost of offshore wind power to an affordable level for discoms

Chart of the Day: The trouble with central government capex

The combined capex of the central government and the central public sector enterprises, as a percentage of GDP, was lower in FY 24 compared to FY14

L&T Chairman Emeritus AM Naik to step down from LTIM, LTTS boards; Subrahmanyan may become chairman

Naik will retire at the conclusion of the companies’ annual general meeting on June 26, which marks the infrastructure veteran's exit from the board of all the L&T group companies

Fiscal prudence from Budget would add to long-term bond market gains

While the budget would offer important cues to the bond market, there is a strong case for bond yields to be benign in the next 1-2  years

Key GST reforms remain in a wait mode

The 53rd meeting of the GST Council gives the big picture a miss and focuses on procedural and compliance issues

Business in the Week Ahead: June 24-28

Atleast two new IPOs will open for subscription. Central government expenditure (budget balance) and money supply are the other data points to track.

New NPS scheme to be launched in July-Aug, says PFRDA chairman

In the NPS balance lifecycle scheme, the debt proportion will increase after 45 years of age. Existing NPS subscribers will also be allowed to move to the new scheme, he said.

Growth of unsecured loans has moderated after RBI's timely action: Shaktikanta Das

He was speaking at the second global conference on financial resilience organised by the College of Supervisors in Mumbai.

Inflation targeting remains work in progress as long as food price pressures persist: RBI Bulletin

The central bank have a inflation target of 4 percent, with a leeway of 2 percentage point on either side.

Is a recession worse than inflation?

Economists have been asking people what they think 

Can the GST Council walk the Centre’s talk on fuel levy?

The benefits of bringing petrol and diesel under the new indirect tax structure far outweigh the challenges to its implementation

Driving on the wrong side: How misplaced infrastructure priorities limit India’s economic potential

Privileging expressways over railways has economic consequences. Policy needs to re-visit current choices if we are to avoid the anomaly of high growth amidst a poor job market

A tale of three inflations, with a twist at the end

Three major economies — US, China and India — reported inflation data. The overall conclusion is that emerging markets look attractive. But there's a fly in the ointment

Will the world get a first glimpse of Modi 3.0 this Friday?

Prime Minister Narendra Modi is all set to open international engagements in his third term with the G7 summit in Italy on June 14

India may grow 6.7% on average from FY25-FY27: World Bank

The World Bank now sees the US economy growing at 2.5 percent in 2024, the same as in 2023 but sharply higher than the previous estimate of 1.6 percent.

How should FIIs play as Modi 3.0 takes charge at the Centre?

For export-oriented sectors such as Auto and Chemicals, global growth is improving on a long-term perspective. However, one needs to be careful about short-term uncertainties in the interest rate trajectory. The other key watch for the medium term is the outcome of the US Presidential election and how it influences the China-plus-one trend.

Cabinet approves assistance for 3 crore more houses under PM Awas Yojana

From 2015-16, the Pradhan Mantri Awas Yojana or PMAY has been providing assistance to eligible rural and urban households for construction of houses with basic amenities.

India's medium-term fiscal consolidation likely to get more challenging, Fitch says

Fitch would like to see durable fiscal consolidation underpinned by revenue-raising measures that can bring down the debt-to-GDP ratio more firmly over the medium-term from around 82% currently

Stocks to ride new government formation

Business fundamentals and valuations have been the parameters used in the selection process

What is the macro impact of a weaker NDA mandate?

Fiscal consolidation to continue though there could be a shift in the expenditure pattern

Why these housing finance stocks should be on your radar, even if a new government with a reduced majority comes to power

Housing’s importance in the economy and the demand for affordable housing means policy support will continue, resulting in growth opportunities for housing finance companies

New government's focus should shift to renewable project mix

Renewable energy projects that can cater to peak electricity demand should be encouraged and scale up