Indian Economy

Budget Views: Shanti Ekambaram, President – Consumer Banking, Kotak Mahindra Bank

Budget Views: Shanti Ekambaram, President – Consumer Banking, Kotak Mahindra Ban

Indian economy has started showing some signs of improvement and economic indicators point towards slow recovery in government revenue. However, the GST collections have reduced in the recent months and Finance Ministry is concerned about the issue. The informal economy suffered a major blow and farm incomes reduced. The Finance Minister has introduced a budget which is focused on agriculture sector.

We present views of Shanti Ekambaram, President – Consumer Banking, Kotak Mahindra Bank on the Union Budget presented by Arun Jaitley.

A budget focused on priority segments

The Finance Minister focused the FY18/19 budget on spends in Agriculture, rural upliftment, the poor, health, education, Infrastructure and Digital India.

Market entities directed to conduct detailed risk assessment of their clients

SEBIAs part of its efforts to check money laundering and terrorist financing, the Securities & Exchange Board of India (Sebi) on Wednesday directed market entities to carry out detailed risk assessment of all of their clients.

The capital market regulator also directed market intermediaries, such as stock broking firms, to appoint a 'designated director' to make sure they comply with the Prevention of Money Laundering (PML) Act. 

Indian economy logged lowest growth in a decade

Indian economy logged lowest growth in a decade New Delhi, Dec 25 - The $1.8-trillion Indian economy suffered its worst slowdown in over a decade with growth below 5 percent for four straight quarters, amid threats of a ratings downgrade, even as policymakers and analysts now feel the worst may be over and the country will steadily move towards a higher rate of expansion.

India will be world’s third-largest economy by 2030: Ahluwalia

India will be world’s third-largest economy by 2030: AhluwaliaIndian economy will become the third-biggest economy in the world in less than two decades, Planning Commission Deputy Chairman Montek Singh Ahluwalia said.

During his speech at the convocation of the 125th course of the National Defence Academy (NDA) at Khadakwasla on Thursday, Mr. Ahluwalia said that India will have the world's third-largest gross domestic product (GDP), after China and the U. S., by the year of 2030.

Indian economy to grow at 6.7 percent in 2013-14: CRISIL

CRISIL-LogoNew Delhi, Jan 9 : India's economic growth is expected to accelerate to 6.7 percent in 2013-14 from the projected rate of 5.5 percent in the current financial year on a revival in consumption, CRISIL said in a report Wednesday.

A pick-up in agriculture, predicated on a normal monsoon, lower interest rates and higher government spending will support private consumption demand, the research and ratings agency said.

Rupee Drops 17 Paise Vs Dollar

Rupee Drops 17 Paise Vs DollarThe Indian currency declined further to 55.91 after shedding 17 paise as compared to the US currency on persistent demand for the American currency from banking institutions as it tautened against other currencies too amid feeble stock markets.

The rupee started the day on a low note at 55.80 per dollar from the previous closing level of 55.74 at the Interbank Foreign Exchange (Forex) Market.

The Indian unit struck between 55.75 and 55.98 per dollar before quoting at 55.91 at 1030hrs.

Indian Unit Declines 27 Paise Vs US Dollar

Indian Unit Declines 27 Paise Vs US DollarThe Indian currency declined 27 paise to Rs 55.92 as compared to the American dollar in morning trade today on solider US currency against euro and Asian currencies.

Forex traders stated that in addition to dollar's benefits in the abroad markets on constant eurozone fears, a feeble opening in the stock exchange also put pressure on the Indian unit.

But, the central banking institution's hint that it may sell dollars straightly to oil firms capped the losses.

Country Can Grow 8-9% For 20 years, Says Montek Singh Ahluwalia

Country Can Grow 8-9% For 20 years, Says Montek Singh AhluwaliaPlanning Commission's Deputy Chairman Montek Singh Ahluwalia stated that the country can develop at between 8- 9% for the coming 20 years with an accommodating worldwide environment.

During a UN General Assembly debate on 'State of the World Economy and Finance in 2012', Ahluwalia stated, “In the five years prior to the crisis, the Indian economy grew at an average rate of 9 percent. Following the crisis, it slowed down to an average of just over percent.”

Economic System To Witness Mild Recovery This Fiscal, Says Central Bank

Economic System To Witness Mild Recovery This Fiscal, Says Central BankUnfazed by 3.5% fall in industrial output during the month of March, the Central Bank (RBI) today oozed out assurance that the existing financial will witness mild revival in the economic growth.

RBI Deputy Governor Subir Gokarn stated, “Our outlook for the year 2012-13 is for a mild recovery in growth.”

Insurance Bill Delayed by Finance Minister

Insurance Bill Delayed by Finance MinisterFinance Ministed Pranab Mukherjee delayed the Insurance Bill as there was no use of passing the bill with already existing 26% FDI limit in insurance sector.

During the cabinet discussions, the finance minister felt that more consultation was required. The finance minister wants to increase the limit from current 26% level.

UPA government wanted to increase the FDI investment limit to 49%. Government owned general insurance companies can also raise funds from market.

GDP Growth Witnessed At 7.6% This Fiscal: Kaushik Basu

GDP Growth Witnessed At 7.6% This Fiscal: Kaushik BasuAccording to Mr. Kaushik Basu, chief economic adviser in the finance ministry, the country’s financial system will grow at 7.6% in the financial 2012-13.

"India should continue to aim to bring down debt-GDP ratio," Mr. Kaushik said.

The economic system probably developed 6.9% during the last financial year, its dimmest in three years.

Mr. Kaushik stated that the volatility of the Indian currency was a big worry and that the administration was watching it in an attentive manner.

Rupee Makes Recovery After Early Losses Vs US Currency In Late Morning

Indian-EconomyIndian currency made recovery after early losses as compared to the US currency during the late morning trade because of fresh selling of the American currency by banking institutions as well as exporters.

At the Interbank Foreign Exchange (Forex), the Indian unit restarted on a lower note at 53.63/64 a dollar from Friday's level of 53.47/48 owing to sharp decline in the securities market.

But, it made recovery to 53.39 a dollar before reaching at 53.41/42 per dollar at 10:30 a. m. considering fresh selling of US currency by banking institutions and exporters.

Tough Week for Indian Markets Ahead

Finance Minister Pranab MukherjeeAfter the Union Budget 2012 announcements made by Finance Minister Pranab Mukherjee, industry and stock markets aren’t very happy. The BSE Sensex closed Friday with a decline of 209 points.

Good thing that happened for the automobile sector was the postponement of additional duty on diesel vehicles. Indian markets are mainly growing on the back of higher volume in diesel segment in case of cars. Many companies will now invest more and increase their capacity.

11th TiECon Delhi 2011 begins Friday

The 11th TiECon Delhi 2011 that begins in the capital on Friday promises action packed two days with keynote addresses by the UK High Commissioner to India Sir Richard Stagg, Secretary, Ministry of Communications and IT Mr. R Chandrashekhar and Secretary, Ministry of Micro Small and Medium Enterprises Mr. Uday Kumar Varma.

While Nokia India’s MD D Shivakumar will deliver the first Prof CK Prahalad memorial lecture. The other speakers of note include Mr. Ronnie Screwala, Founder and CEO UTV group.

Rupee 8 Paise Down to Rs 44.43, against Dollar

Rupee 8 Paise Down to Rs 44.43, against Dollar The Indian Rupee came 8 paise down to Rs 44.43 against the US dollar on Monday, July 25, 2011. The Indian currency was down at 44.43 per dollar, whereas last week it was 44.35/36 per dollar at the Interbank Foreign Exchange
(Forex). Possibility of the US debt crises reasons out the weak opening of the Indian stocks in early trade.

According to a Forex dealer, oil-refiners were the main reason which has affected the rupee value against the dollar. In Asian trades, crude oil has gone down due to the expected US default.

Inflation May Decline To 7% In April

Inflation May Decline To 7% In AprilAccording to an adviser to the administration, headline inflation is likely to come down to near 7% as compared to 8.31% during February in the coming weeks.

C Rangarajan, chairman, the Prime Minister's Economic Advisory Council, anticipates the Wholesale Price Index (WPI) inflation to drop to about 7% by April end.

India's annual rate of inflation rose to 8.31 percent for February

The annual rate of inflation of the country was recorded 8.31 per cent (provisional) during February of the current year. The recorded rate of inflation was based on the wholesale price index (WPI). For the similar month in the preceding year, it was recorded 9.68 per cent.

The official wholesale price Index for all commodities has gone up by 0.1 per cent in the month under review. The wholesale price Index for all commodities was recorded 146.0 (provisional) in this month. Last year, in the month of February, it was recorded 145.9 (provisional).

The inflation of the nation has been recorded 7.51 per cent in the month of February this year against 9.42 per cent in the same month last year.

Industrial Output Analysis by Fairwealth Securities

Industrial-outlookAfter posting a weak growth of 2.5% (revised from 1.6%) in Dec’10 , the Industrial growth recovered to 3.7% in Jan’2011 on the back of better manufacturing output mainly in the consumer goods segment. It is high base effect which pushed IIP growth in a slowdown phase since Nov’2010. Cumulative growth for the period Apr-Jan’2011 stands at 8.3% as against 9.5% in the corresponding period previous year.

Pranab Mukherjee wants RBI to tame inflation

Pranab Mukherjee wants RBI to tame inflationFinance Minister Pranab Mukherjee has suggested Reserve Bank of India to take strong steps on inflation. According to the recent reports, finance ministry wants RBI to keep a strict check on inflation.

Finance ministry's concern comes at a time when RBI is about to announce its mid-quarterly review of the monetary policy on March, 17. RBI has raised key policy rates 7 times in one year from March, 2010 to control inflation. Its efforts counted and finally inflation graph started showing a negative path recently.

Mukesh Ambani expects Indian economy to reach $5 trillion

Chairman of India's leading conglomerate Reliance Industries, Mukesh Ambani is highly optimistic about economic growth in India. In a recent conference, he gave his opinion about the future and Indian economy and said Indian economy would reach a whooping $5 trillion mark by 2022-2025.

ICICI Bank chairman, K V Kamath has also positive thoughts about Indian economy. He also said India would be $5 trillion economy by 2022. These business leaders, among others, gathered at Institute of International Finance (IIF) to attend a discussion.

Speaking at the discussion meeting, Mukesh Ambani said, "India will be a USD 5 trillion economy by 2022-25. There can be a debate whether it would 2022 or 2025."

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