Page 92 - Indian Economy

RBI tweaks D-SIB designation methodology, inserts digital payments aspect

The value of securities reported under 'Total Marketable Securities issued by bank' would be based on their market value

Rate impact, inflation decline: Axis MF forecasts 2024 as year of contrast

Citing the recent state election results, the note stated that the risks from the general election are low

Risk of Oil price spike impacting India in Fy25 is low: CEA Nageswaran

An oil price surge of 10 per cent from the baseline of $85 per barrel could weaken domestic growth by 15 basis points and increase inflation by 30 basis points

Bad assets of banks decline multi-year low to 0.8% in Sept: RBI report

The Reserve Bank on Thursday said net non-performing assets ratio of banks declined to a multi-year low of 0.8 per cent at the end of September 2023 and the country's domestic financial system remains resilient. "The resilience of the non-banking financial companies (NBFCs) sector improved with CRAR at 27.6 per cent, GNPA ratio at 4.6 per cent and return on assets (RoA) at 2.9 per cent, respectively, in September 2023," said the RBI's Financial Stability Report (FSR). The gross non-performing assets (GNPA) ratio of banks also declined to a multi-year low of 3.2 per cent, it said. The report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the Indian financial system. It further said that the capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of scheduled commercial banks (SCBS) stood at 16.8 per cent and 13.7 per cent, respective

India likely to remain fastest growing major economy in 2024: Assocham

India is likely to remain the fastest-growing major economy in the world in 2024 on the back of strong consumer demand leading to a pick up in investment across sectors such as construction, hospitality and infrastructure including railways and aviation, Assocham said on Thursday. India retained the tag of the world's fastest-growing major economy, with its GDP expanding by a faster-than-expected rate of 7.6 per cent in the July-September quarter on booster shots from government spending and manufacturing. The country's Gross domestic product (GDP) growth of 7.6 per cent beat most estimates, including 6.5 per cent projected by the Reserve Bank of India (RBI). The growth compares to 6.2 per cent in the same quarter last year and 7.8 per cent expansion in the preceding quarter, official data released on Thursday showed. India's GDP growth beat China's 4.9 per cent rise in July-September, while the Western economies are getting crushed under high-interest rates and energy ...

Current account gap narrows to 1% of GDP at $8.3 bn in Q2FY24: RBI

Services exports grew by 4.2 per cent on a y-o-y basis on the back of rising exports of software, business and travel services, the Reserve Bank said

MGNREGA spend spike, subsidies to lead to fiscal slippage in FY24: Report

Despite the handsome growth in tax collections, there is a possibility of a fiscal slippage in FY24 because of higher spends on employment guarantee scheme and subsidies, a domestic rating agency said on Tuesday. India Ratings and Research, which is a unit of international rating agency Fitch Ratings, said the fiscal deficit for FY24 will come at 6 per cent, as against the budgetary target of 5.9 per cent. "Higher-than-budgeted revenue expenditure triggered through the first and likely second supplementary demand for grants in combination with lower-than-budgeted nominal GDP will push the fiscal deficit," the agency said in a note. It said the fiscal slippage will happen despite higher tax and non-tax revenue collections, and also added that these will be more than sufficient to offset the lower-than-budgeted divestment proceeds. In the first supplementary demand, the union government will spend more on prioritised areas/sectors such as food, fertiliser and LPG subsidy and Mahatma

India-Asean FTA review: Talks for 'modern' pact scheduled for Feb

For a long time, India has been worried about the routing of goods from third countries through non-Asean countries by taking the duty advantages of the agreement

'Closer to where rates have to be cut to avoid excessive real interest'

Varma says that since monetary policy acts with lags of three to five quarters, rate actions must be based on projected inflation rather than past inflation prints. In an interview with Manojit Saha

Need to keep real rates at level to sustain virtuous cycle: Ashima Goyal

Ashima Goyal tells Manojit Saha in an email interview that the inflation rate does not necessarily have to fall to 4%, but it is essential to be confident that it will stay below 5%

Rating constraints

India's economic size and complexity offer advantages

India's economy growing but wealth not getting distributed: Rahul Gandhi

India's economy is growing but the wealth is getting concentrated in a few hands and the challenge of unemployment continues, Congress leader Rahul Gandhi said in an interaction with some students of Harvard University. The former Congress president on Saturday shared on X a video of the interaction held on December 15, and said, "My advice to all students - True power comes from connecting with people, listening deeply to what they're saying, and being kind to yourself." Asked about India's economic growth in the last 10 years during the interaction, the Congress leader said, "When you talk about economic development you have to ask the question in whose interest is that economic development." "The question to ask is, what is the nature of that growth and who is benefiting from that. Right next to the figure of growth in India, you have the figure of unemployment in India. So India's growing, but the way it's growing is by massively concentrating wealth towards very few people," he

Best of BS Opinion: No alternative to green industrial strategy & more

Here is the best of Business Standard's opinion pieces for today

'Discontents' notwithstanding, India has done well in last quarter century

While India should be concerned about disparities, the fact is that whereas three decades ago about half the people had incomes greater than $2.15 a day, today seven out of eight do, writes T N Ninan

RBI to conduct VRR auction again as liquidity deficit widens to Rs 2.3 trn

Market speculation suggested a total of around Rs 4 trillion worth of outflows because of advanced tax and GST payments in December

RBI announces draft norms for setting up SROs, proposes to audit its books

The omnibus SRO framework prescribes the broad objectives, functions, eligibility criteria, and governance standards, which will be common for all SROs, irrespective of the sector

IMF cautions India on govt debt vulnerabilities, Centre disagrees

General govt debt may exceed 100% of GDP in medium term, warns Fund

India tops remittances table with $125 bn inflows: World Bank report

Inflation declining and strong labour markets in high-income source countries boosted transfers by highly skilled Indians, it says

Parliament approves additional spending of Rs 58,378 crore in FY24

Parliament on Tuesday gave its approval for a net additional spending of Rs 58,378 crore in the current fiscal ending March 2024, with a large chunk allocated to MGNREGA and fertiliser subsidies. The gross additional spending would be more than Rs 1.29 lakh crore, out of which Rs 70,968 crore would be matched by savings and receipts. On Tuesday, Rajya Sabha returned the two appropriation bills to Lok Sabha after a brief discussion. Most of the members who participated in the discussion were from the Treasury benches as a large number of Opposition members are suspended from the House. Opposition members who were present did not participate in the discussion. Last week, Lok Sabha passed the supplementary demands for grants after a short discussion. Replying to the discussion on Supplementary Demands for Grants in Rajya Sabha, Minister of State for Finance Pankaj Chaudhary on Tuesday highlighted the key aspects of the first batch of demands for grants. According to the demands for

India's economy projected to grow at 6.3% in current fiscal year, says IMF

"India has potential for even higher growth, with greater contributions from labour and human capital, if comprehensive reforms are implemented," the IMF said.