Indicators
RBI aims to get inflation down to 4%, don't expect any rate cut this year: Amitabh Chaudhry, MD, Axis Bank
Axis Bank aims for sustained growth through NIM enhancement, market share expansion, and compliance strengthening under CEO Amitabh Chaudhry's leadership.
Maharashtra's economic survey 2023-24: Shinde government spurs robust growth and recovery
The economic survey of Maharashtra for 2023-24 revealed a positive economic outlook under the Shinde government compared to the previous Maha Vikas Aghadi administration. The survey showcased growth in GSDP, FDI, and entrepreneurship. Maharashtra's GSDP growth outpaces Gujarat, FDI attraction has surged, and entrepreneurship is thriving with the highest number of startups in India. The survey also highlighted progress in social welfare, agriculture, financial assistance to farmers, infrastructure development, and increased allocation for women's education.
Core infra sectors grow 6.3% in May, maintain 6%-plus expansion for fourth straight month
Core infrastructure industries maintained growth above 6% for the fourth consecutive month in May, with notable increases in power generation and coal output. However, sectors like fertiliser and cement production witnessed contractions. Overall, the growth trajectory in the first two months of the fiscal year remains positive.
India economy likely to sustain high growth trajectory: ITC
Indian conglomerate ITC predicts the Indian economy will sustain its high growth trajectory in FY2024-25 due to strong momentum in fixed investments and private consumption. The growth is supported by a good Rabi harvest and normal monsoons. Factors like a favorable demographic profile, increasing affluence, rapid urbanisation, and accelerated digital adoption are key structural drivers of the Indian economy.
India's key infra sectors' growth slows to 6.3% in May
In May, India's eight core sectors grew at a rate of 6.3% annually, slightly down from 6.7% in April but higher than 5.2% in May 2023. The sectors showing positive growth included electricity, coal, steel, natural gas, and refinery products, according to the Ministry of Commerce & Industry
India's forex reserves rise by $816 million to $653.7 bn as on June 21
India's forex reserves increased by $816 million to $653.7 billion as of June 21, compared to a previous contraction of $2.92 billion to $652.9 billion. Foreign currency assets decreased by $106 million to $574.1 billion. Gold reserves rose by $988 million to $56.95 billion, while SDRs fell by $57 million to $18.04 billion.
Fiscal deficit hits 3% of full FY25 target in April-May at Rs 50,615 crore
India's fiscal deficit for April-May reached approximately 3% of FY25's target, totaling Rs 50,615 crore. PM Narendra Modi's third term priorities include tackling agricultural distress, job creation, sustaining capital expenditure, and enhancing revenue growth for fiscal consolidation. S&P upgraded India's sovereign rating outlook to positive, contingent on fiscal discipline
India's weekly vegetable spending up in the past few weeks, says survey
Rising vegetable prices due to various factors like the heatwave and monsoon challenges have led to increased consumer spending. Authorities are urged to step in to address the situation and stabilize prices for households across the country.
Savings down, financial liabilities up: RBI says household debt warrants close monitoring
The Reserve Bank of India highlighted rising household financial liabilities post-Covid, with overall savings dropping to 18.4% of GDP in FY23 from an average of 20% between 2013-22. Household debt, driven by increased retail loans, is mostly held by prime credit quality borrowers. Savings are now shifting towards physical assets and non-bank investments.
Maharashtra's economy expected to grow by 7.6 per cent in FY24: Economic Survey
Maharashtra’s economy is projected to grow by 7.6% in 2023-24, mirroring India's expected growth rate. The state’s agriculture sector, impacted by adverse conditions, is set to increase by 1.9%, while the industry and services sectors are forecasted to expand by 7.6% and 8.8%, respectively.
Must Watch
Private consumption seen growing, concerns on capex growth: Morgan Stanley Research
Consumption growth has remained weak since the pandemic, recovering at a slow pace. Private consumption is recovering, with growth is tracking at 4% in the quarter ended March 31, 2024 as against 1.5% a year ago but it is just catching up to the pre-pandemic trend and remains below the pre-pandemic average of 6.3% in 2019.
Narrowing trade deficit, rise in remittances aid current account surplus: CRISIL
Financial flows also increased leading to accretion in foreign exchange reserves during the fourth quarter amounting to USD 30.8 billion, it said. The country's foreign reserves, as of June 14, 2024, stood at USD 652.9 billion. The report said even though the FDI inflows continued, there has also been a rise in outward FDI, leading to a reduction in net flows, the report said.
India likely to grow at 7.5% in FY25: NCAER
The National Council of Applied Economic Research (NCAER) forecasts India's FY25 GDP growth at about 7.5%, driven by strong economic activity. NCAER's Director General, Poonam Gupta, highlighted buoyancy in the first quarter, robust investment policies, and macroeconomic stability. While the RBI projects 7.2% growth, Gupta noted that addressing rising food prices remains challenging, calling for climate-resilient and innovative food supply solutions.
Rain deficit may spike food inflation further, warn experts
A note from Madhavi Arora, lead economist at Emkay Global Financial Services Ltd, said cumulative rainfall till June 21 was 17% below the long-term average (LTA), while the weekly rainfall (till June 19) was 33% below the LTA. Overall, basin-wise reservoir levels were in deficit and below last year's level as well. On June 20, the overall level was about 9% below the LTA and 19% below last year's level.
India's inflation also 'K-shaped'; rural folk more hurt by price-rise: HSBC
The government lent a helping hand by cutting several fuel prices but many of the fuels like petrol, diesel and LPG are not commonly used in rural areas, like they are in urban centres, leading to rural inflation being much higher than urban, it said.
India’s growing water shortage may weigh on its credit health: Moody’s
India is facing a growing water shortage as consumption is rising amid a rapidly growing economy and frequent natural disasters which is detrimental to the credit health of the country, and for sectors like power generators and steelmakers that are heavily dependent on it, Moody’s Ratings said on Tuesday.
