ECONOMIC POLICIES
Why Budget 2024 must have more than Sensex on its radar
Budget 2024: The Union budget is set to dominate headlines in India, with the question of whether realpolitik or coalition compulsions will dictate the budget's economic policy. The interplay between economics and politics is not new to India, as it is part of elected democracies. The BJP's performance fell short of expectations due to inflation and unemployment, both factors within the domain of economic policy.
Don't obsess on inflation targets
In my capacity, I stress the importance of preparing for the AI revolution and managing public funds wisely to navigate economic uncertainties. Governments must prioritize debt sustainability and structural reforms to ensure long-term prosperity and stability.
US inflation cools in May, boosting hopes of Fed rate cut
May's stable inflation, influenced by service costs and goods prices, sets the stage for potential Federal Reserve interest rate changes. The report highlights slight consumer spending growth and hints at the Fed's aim for a controlled economic slowdown through core inflation moderation.
Has the global economic environment turned favourable for equities?
Global economy's resilience amidst crises led to surprising growth stability and inflation control. Potential trade war threats loom, while equity markets soar to record highs, indicating positive economic outlook.
Budget 2024 will see many historic economic policies, will be a futuristic one: President Murmu at Parliament
In her address to Parliament, President Droupadi Murmu announced that the upcoming Union Budget will introduce historic economic policies and reforms at an accelerated pace. Highlighting India's contribution of 15% to the global economy, she emphasized that this budget will reflect the government's long-term policies and futuristic vision. Finance Minister Nirmala Sitharaman is set to present this Union Budget in July 2024.
What should be your investment strategy after elections?
Market volatility post Indian election triggered short-term turbulence, yet history shows eventual alignment with economic fundamentals. Resilient corporate earnings, infrastructure development and vigilant sector monitoring are emphasized for long-term strategic investments amidst fluctuating market conditions.
- Go To Page 1
In 10 years, India no longer a charity case, it's the driving force of world economy: Sanjeev Sanyal
There are no such things as poor people. They are poor places. Say two brothers grew up in Moradabad. One of them stays back in Moradabad and another went off to Dubai. After five years, one person will be earning a lot more than the other. Why does this happen? It is because places matter, says Sanjeev Sanyal
India central bank policymakers divided over rate-growth debate
Internal members maintain hawkish stance on inflation, with Governor Das cautioning against hasty actions for fear of worsening the situation
Critics of Indian democracy silenced: Union minister Ashwini Vaishnaw
Ashwini Vaishnaw highlighted India's trust in PM Modi's government at the India Global Forum in London.
RBI needs to shift focus from inflation management to growth promotion: MPC member Varma
With retail inflation nearing the Reserve Bank of India's (RBI) 4% target, RBI Monetary Policy Committee (MPC) member Jayanth R. Varma emphasized a shift towards promoting growth. He noted that core inflation is benign and projected CPI inflation for 2024-25 is only 0.5 percentage points above target. Varma advocated for a less restrictive monetary policy to balance disinflation and support economic growth, which is expected to be slightly lower in the coming years.
India bond yields seen little changed amid lack of fresh cues
Indian government bond yields are expected to hold steady on Monday, moving in a 6.95%-6.99% range. Inflows under the FAR, crossing $10 billion, and foreign banks' increased bond purchases ahead of the inclusion affect U.S. Treasury yields.
Real rate of interest at 1.5 pc apt for economy: Shashanka Bhide
Shashanka Bhide, an external member of the rate-setting panel, suggests a real interest rate of 1.5% for India, closely tied to achieving the Monetary Policy Committee's 4% inflation target. He emphasizes the importance of favorable macroeconomic conditions for high economic growth.
India, Bangladesh agree to start talks on comprehensive trade pact
India and Bangladesh have agreed to begin negotiations on a comprehensive economic partnership agreement, as Prime Minister Narendra Modi announced after talks with Bangladeshi PM Sheikh Hasina. Modi emphasized that Bangladesh is India's largest development partner and that New Delhi gives top priority to their relationship. The leaders also discussed enhancing defense cooperation, including defense production and modernization, and signed agreements in areas such as the digital domain, maritime sphere, and railway connectivity.
"We should expand our horizon": Bangladesh PM's adviser on economic cooperation with India
Bangladesh Prime Minister Sheikh Hasina's Private Industry and Investment Adviser, Salman F Rehman, emphasized expanding economic cooperation with India to strengthen bilateral ties. During Hasina's two-day state visit to India, Rehman highlighted interest in various sectors including energy, healthcare, FMCG, IT, and agriculture. He also noted the Confederation of Indian Industry's proposal for Bangladeshi businesses to explore opportunities beyond northeastern India. Both nations aim to enhance their economic collaboration, reinforcing the strong bond under Prime Ministers Modi's "Neighbourhood First" policy and Hasina's regional focus.
US PMI data triggers sharp decline in gold prices
Gold prices surged to a two-week high of $2,366 following a second rate cut by the Swiss National Bank and weaker US data. Traders anticipate a move by the US Federal Reserve, especially after the European Central Bank's rate cut.
Budget 2024: What is a Populist Budget and why is it controversial?
A populist budget is a fiscal plan focused on immediate public appeal through measures like tax cuts and social spending increases. Criticized for prioritizing short-term benefits over long-term economic stability, such budgets can lead to fiscal deficits, inflationary pressures, and disparities in resource distribution, while potentially undermining independent economic institutions.
Union Budget 2024: Here is how revenue, fiscal and primary deficit impacts the Indian economy
Union Budget 2024: A revenue deficit arises when a government's day-to-day expenses surpass its total revenue receipts, necessitating borrowing, divestments, or adjustments in taxes to bridge the shortfall. In contrast, a fiscal deficit occurs when government expenditure exceeds its total receipts, influencing aspects like economic growth, price stability, production costs, and inflation.
Union Budget 2024: Key facts and insights you need to know
Union Budget 2024: India's inaugural Budget was announced in pre-independent India on April 7, 1860, by Scottish economist and politician James Wilson of the East India Company, presenting it to the British Crown. Following Independence, India's first post-independence budget was presented on November 26, 1947, by then Finance Minister R K Shanmukham Chetty.
Job creation is India's top economic challenge, policy experts say
According to a poll of policy experts by Reuters, tackling India's chronic joblessness will be the biggest challenge for the government over the next five years, despite the country's status as the world's fastest-growing major economy. The economy grew more than 8% last fiscal year, but this growth has not translated into sufficient job creation, particularly for young people. The recent parliamentary elections saw Prime Minister Narendra Modi's BJP losing its majority, partly due to issues such as widening inequality, inflation pressure, and a lack of well-paying jobs.
Nirmala Sitharaman assumes charge of Finance Ministry, to ensure 'ease of living'
Nirmala Sitharaman took charge of Finance Ministry for her second consecutive term and isset to present FY '25 Budget defining Modi 3.0 government's priorities. She was greeted by officials upon reaching office. Her previous tasks included base corporate tax cut, managing economy during Covid-19, and fiscal consolidation. Sitharaman, born in Madurai, pursued economics before entering politics.
Nirmala Sitharaman: Feisty defender of Modi govt to filling big shoes
As a staunch defender of the Modi government's economic policies and executor, Nirmala Sitharaman created a record when she was appointed as the first female Raksha Mantri, or Defence Minister, in 2017. Prior to that, she was industry and commerce minister.
Asian earnings growth to outpace US and Europe, India's growth momentum strong: Report
The analysis by CLSA, citing Bloomberg's projections, forecasts that Asian earnings growth will surpass that of the US and Europe for both this year and the next. This positive outlook is in line with the Reserve Bank of India's (RBI) prediction of a robust 7.2 per cent growth rate for India in fiscal year 2025.
RBI policy on expected lines, upgrading GDP growth estimate reposes confidence: Bankers
Bankers welcomed the Reserve Bank of India's decision to maintain interest rates, as it was in line with expectations, with an upward revision of the growth estimate. The move, including the unchanged repo rate, was seen as positive for the economy. The revised GDP growth forecast for FY25 instilled confidence in the central bank's outlook. Industry leaders praised the regulatory measures and highlighted the importance of collaboration for financial sector growth.
India Inc cheers continuity at the Centre, but rues fragility
Indian industry leaders express confidence in the economy's resilience despite the NDA-BJP government's unexpected outcome without an absolute majority. They anticipate policy continuity but caution about potential hurdles due to a stronger opposition and diverse political ideologies. The focus may shift to consumption, welfare schemes, and rural sectors. Stability is crucial for reforms, but the BJP's shortfall could complicate passing contentious reforms. However, the economy's growth agenda is expected to continue, with an emphasis on inclusivity and job creation.
Job market recovery may slow, for now
The absence of a decisive mandate in the 2024 elections may impact job market recovery temporarily. Coalition partners will have a stronger voice in policy decisions, affecting investor sentiment. Experts anticipate a short-term slowdown in job creation.
Market will soon start acting and reacting to economic fundamentals
The unexpected election results and resulting uncertainty have triggered market jitters, reminiscent of similar situations in 2004 and 1991
Don't see any material changes in policies going ahead: Rajeev Thakkar
And if we step back what does the election outcome mean for the markets? So, barring the pre-election and post-election for a week, 10 days, people will move on.
Setting up shop for turbo policy
India's economic growth of 8.2% in 2023-24 surpasses historical hurdles, reflecting policy continuity's impact on performance.
RBI dividend will have economic dividends
RBI came into this windfall because of high interest rates in advanced economies, which may persist before an eventual cyclical inversion. The strength of India's recovery from the pandemic also contributed to the RBI surplus, and monetary policy would be inclined to pursue this course by easing interest rates ahead of the pack. Inflation is offering comfort on the demand side for an interest rate downcycle. Food inflation, less amenable to demand management, remains a concern.
Load More
