New 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.
The 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.
The 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.
Planning 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.”
Unfazed 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.”
Finance 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.
According 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.
Indian 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.
After 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.
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.
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.
According 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.
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.
After 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.
Finance 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.
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."
Indian Government has no plans of freeing diesel prices seeing current inflation. Denying all considerations about government's favor of freeing diesel prices, Indian chief economic advisor Kaushik Basu told reporters that inflation is still in "uncomfortable zone" so freeing the diesel price will risk more to this.
Speaking to reporters at a CII event, Basu said, "I am not of the view that diesel price deregulation is inevitable and that is the position taken by petroleum ministry right now. Given the inflationary situation right now, we don't want to do that".
Indians may soon be paying Goods and Service Tax (GST). Finance Minister, Pranab Mukherjee is very keen to get this bill passed. According to reports, finance ministry is on its way to introduce the Goods and Service Tax bill to public.
For this, the government has planned to bring Goods and Service Tax constitutional amendment bill for the Cabinet approval coming Thursday.
Once this bill gets approval from the Cabinet, this will be presented before the assembly. Business news channel CNBC-TV18 reported that a cabinet note has been circulated to all ministries about GST amendment bill.
Indian Finance Minister Pranab Mukherjee described loyal taxpayers as engines of economy. Speaking to Indian Revenue Services probationers, he insisted them to treat taxpayer as a client not as enemy.
He said, "The assessee is no longer considered an adversary; committed taxpayers are the engines of our economy and therefore important clients of Revenue Department".
Finance minister was addressing probationers at Parliament House Complex in New Delhi. He deemed that comfort zone of taxpayer should be considerably enhanced, while at the same time punishing serious offenders and evaders.
The one concern that has proved to be an over-riding factor in formulating this year’s budget is inflation. Nearly all the things done by the finance minister, and even things not done by him, has an explanation based on that one single concern.
This is the sharpest fiscal correction tried to achieve by any government in the last twenty years. One is advised not to go by the headline numbers of 5.1% fiscal deficit for this 2011 and 4.6% for 2012.