Page 267 - Indian Economy
India's foreign exchange reserves drop by $2.4 billion to $576.8 billion
The country's foreign exchange reserves declined by USD 2.415 billion to stand at USD 576.869 billion in the week ended April 2, RBI data showed on Friday. In the previous week ended March 26, the reserves had decreased by USD 2.986 billion to USD 579.285 billion. The forex kitty had touched a record high of USD 590.185 billion in the week ended January 29, 2021. In the reporting week ended April 2, 2021, the decline in the reserves was mainly on account of a fall in foreign currency assets (FCA), a major component of the overall reserves. FCA declined by USD 1.515 billion to USD 536.438 billion, weekly data by the Reserve Bank of India (RBI) showed. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. The gold reserves dropped by USD 884 million to USD 34.023 billion in the reporting week, as per the central bank data. The special drawing right
 "India's foreign exchange reserves drop by $2.4 billion to $576.8 billion")
India's fuel consumption shrinks 9.1% in FY21, a first in over 2 decades
India's fuel demand contracted by 9.1 per cent in the year ended March 31, the first in more than two decades, as a stringent lockdown imposed to curb the pandemic pummelled economic activity
 "India's fuel consumption shrinks 9.1% in FY21, a first in over 2 decades")
Mutual fund assets soar 41% to Rs 31.43 trillion in FY'21: Report
Assets under management with the mutual fund industry jumped a whopping 41 per cent in fiscal 2021 to Rs 31.43 trillion, despite a minor 1 per cent decline in March, says a report
 "Mutual fund assets soar 41% to Rs 31.43 trillion in FY'21: Report")
Building back differently
Putting India back on the growth track demands a robust analytical framework to address the structural downturn in the economy caused by Covid-19
Economic activity rebounds globally even as Covid-19 cases rise: Moody's
Moody's Investors Service has said that high-frequency alternative data indicates a strong rebound in economic activity even as infection rates rise
 "Economic activity rebounds globally even as Covid-19 cases rise: Moody's")
India's retail inflation likely rose in March but stayed within target
The April 5-8 poll of more than 50 economists showed retail inflation rose to 5.40% in March from a year earlier as opposed to 5.03% in February. Forecasts ranged from 4.60% to 6.11%
 "India's retail inflation likely rose in March but stayed within target")
We have given G-SAP 1.0 a distinct character, say RBI's Das & Patra
We are giving up this discretion to give an explicit assurance to the markets that we will assist them in the conduct of the borrowing programme, said Patra
 "We have given G-SAP 1.0 a distinct character, say RBI's Das & Patra")
Implicit & explicit: RBI policy statement is all about forward guidance
One challenge that the RBI might have to face in FY22 is the movement in exchange rate
Analysts turn cautious; prefer defensives amid sporadic lockdowns
Activity levels, analysts at Jefferies believe, will take a significant hit across sectors such as infrastructure, real estate, discretionary, and durables as more local lockdowns are announced
 "Analysts turn cautious; prefer defensives amid sporadic lockdowns")
Risks beyond growth
RBI should not undermine the price and financial stability objectives
 "Risks beyond growth")
Govt likely to tweak RoDTEP scheme amid outcry over refund rates
The new scheme aims to refund to exporters the embedded non-creditable central, state and local levies paid on inputs.
 "Govt likely to tweak RoDTEP scheme amid outcry over refund rates")
PMI services expand at a slower pace in March on surge in Covid cases
The IHS India Services Business Activity Index eased to 54.6 in March from 55.3 in February, suggesting moderation in growth
 "PMI services expand at a slower pace in March on surge in Covid cases")
Economic recovery on rough patch, second Covid-19 wave may dampen prospects
Gaps in recovery have been surfacing after the resurgence in new cases due to Covid-19 second wave, but the moderation in the pick-up seems to have begun well before.
 "Economic recovery on rough patch, second Covid-19 wave may dampen prospects")
RBI's accommodative policy stance reassuring to industry, trade: Chambers
The Reserve Bank of India's decision to continue with the accommodative policy stance is reassuring to the industry and trade, according to chambers
 "RBI's accommodative policy stance reassuring to industry, trade: Chambers")
Liquidity support, bond yield management: Key takeaways from RBI Policy
RBI monetary policy 2021: The recent surge in Covid-19 infections, however, imparts greater uncertainty to the outlook, RBI governor Shaktikanta Das said today
 "Liquidity support, bond yield management: Key takeaways from RBI Policy")
Statsguru: India continues to fail its women as Covid-19 made things worse
India's economic participation and opportunity index was rising till 2012
 "Statsguru: India continues to fail its women as Covid-19 made things worse")
Evidence of normalisation of economic activity in India, says Gita Gopinath
In its annual World Economic Outlook, the Washington-based global financial institution said that the Indian economy is expected to grow by 6.9% in 2022
 "Evidence of normalisation of economic activity in India, says Gita Gopinath")
Bond market upbeat with RBI on back foot as Covid-19 infections surge
Status quo on rates likely to be maintained for some time
 "Bond market upbeat with RBI on back foot as Covid-19 infections surge")
Govt appoints Ajai Seth as DEA secy; Tarun Bajaj to take charge of revenue
According to the executive record-sheet, Seth is back in central posting after a gap of 13 years.
 "Govt appoints Ajai Seth as DEA secy; Tarun Bajaj to take charge of revenue")
The GST puzzle
The sharp rise in GST collection in March could be a false indicator if further rate reforms are delayed
 "The GST puzzle")