The document discusses India's strong economic growth in recent years, with GDP growth averaging over 8.5% since 2003 and expected to be around 8.5% in 2007-2008. Inflation has also increased but remains under control at around 5%. Interest rates are expected to rise to control inflation. The strengthening economy has boosted investor confidence but India still faces challenges in sustaining growth, reducing poverty and population growth, and developing infrastructure and education.
The document provides an overview of the key topics covered in the Indian Economic Survey of 2011-12, including:
1) What is an economic survey and its purpose of reviewing the previous year's economic performance and prospects.
2) The status of the Indian economy in 2011-12, with growth estimated at 6.9% compared to 8.4% in the previous two years, largely due to weakening industrial growth.
3) Highlights and conclusions from the survey covering fiscal developments, prices and monetary policy, trade, agriculture, industry, infrastructure and other sectors.
The Union Finance Minister Shri Arun Jaitley tabled the Economic Survey 2016-17 today, the first day of the Budget Session of the Parliament. The Economic Survey says that the adverse impact of demonetisation on GDP growth will be transitional and the economy will recover with remonetisation. The Survey states that once the cash supply is replenished, which is likely to be achieved by end of March 2017, the economy would revert to normal. The GDP growth in 2017-18, as per the survey, is projected to be in the range of 6¾-7½ percent.
The Survey suggests a few measures to maximise long-term benefits and minimise short-term costs. One, fast remonetisation and early elimination of withdrawal limits. This would reduce GDP growth deceleration and cash hoarding. Two, continued impetus to digitalisation while ensuring that this transition is gradual and inclusive, and appropriately balances the costs and benefits of cash versus digitalisation. Three, following up demonetisation by bringing land and real estate into the GST. Four, reducing tax rates and stamp duties.
This is an analysis and brief overview document on the Survey
This document provides an overview and analysis of the Indian economy in 2011-12. It summarizes the key findings of the annual Economic Survey presented to Parliament, including a slowdown in GDP growth to 6.9% due to weak industrial growth, high inflation that has begun to decline, and a likely fiscal deficit slippage. It also discusses developments in agriculture, industry, fiscal policy, prices, trade and the global economic challenges faced by India.
The document provides an economic outlook and analysis across various sectors in India. It discusses that the RBI kept interest rates unchanged in its recent monetary policy review due to ongoing uncertainties around inflation. While inflation is falling, risks remain from the monsoon season, upcoming general elections, and US Fed tapering. The equity outlook remains positive with expectations of strong corporate earnings growth. Key sectors that are expected to perform well include banking, infrastructure, IT, and pharma. Overall, the analysis maintains a bullish stance on the Indian equity market.
The key direct tax proposals include increasing the surcharge on individuals earning over Rs. 1 crore to 15%, taxing dividend income over Rs. 10 lakhs at 10%, and introducing an equalization levy of 6% on non-resident companies for digital transactions. Notable corporate tax proposals include a concessional 10% tax rate for income from patents developed in India, 100% deduction of profits for 3 years for eligible startups, and phasing out of certain tax exemptions by 2020. The budget also introduced an income declaration scheme and a direct tax dispute resolution scheme.
The new government needs to
- The global investment climate became moderately positive in February, with the outlook on India improving considerably due to deteriorating fundamentals in other emerging markets.
restart the programme in a big way
- Quarterly company results surprised positively against the deteriorating macro scenario. It remains to be seen if this marks a turnaround or short-term improvements.
to meet its fiscal deficit targets and
- Going into March, equities may rally on expectations of a pro-reform government after elections. However, the market will be highly sensitive to the
This document provides an economic update and outlook for India. It summarizes that India's GDP growth slowed to a 10-year low of 4.5% in the third quarter due to declines in agriculture, mining, and manufacturing. Inflation rates have been falling but remain elevated. The RBI recently cut interest rates and expects further monetary easing this fiscal year alongside reforms to revive investment and growth. Equity markets have performed well recently and earnings are expected to grow 12% this year led by private banks, healthcare and consumer companies. The outlook provides sector views, favoring healthcare, banking, and FMCG.
- The passage summarizes Pakistan's economic growth and challenges over recent years. It notes that GDP growth has been stuck at around 3-4% annually, below Pakistan's potential of 6.5%, due to various domestic and external shocks. These include floods, a security crisis, energy shortages, and global economic issues.
- The economy showed modest signs of recovery in 2011-12, with estimated GDP growth of 3.7% compared to 3% the previous year. Agriculture grew 3.1% and manufacturing 1.8% while services grew 4%.
- However, growth remains below potential and structural issues remain like challenges to sustaining high growth, low inflation, and balanced external payments. Re
The document provides an overview of the key topics covered in the Indian Economic Survey of 2011-12, including:
1) What is an economic survey and its purpose of reviewing the previous year's economic performance and prospects.
2) The status of the Indian economy in 2011-12, with growth estimated at 6.9% compared to 8.4% in the previous two years, largely due to weakening industrial growth.
3) Highlights and conclusions from the survey covering fiscal developments, prices and monetary policy, trade, agriculture, industry, infrastructure and other sectors.
The Union Finance Minister Shri Arun Jaitley tabled the Economic Survey 2016-17 today, the first day of the Budget Session of the Parliament. The Economic Survey says that the adverse impact of demonetisation on GDP growth will be transitional and the economy will recover with remonetisation. The Survey states that once the cash supply is replenished, which is likely to be achieved by end of March 2017, the economy would revert to normal. The GDP growth in 2017-18, as per the survey, is projected to be in the range of 6¾-7½ percent.
The Survey suggests a few measures to maximise long-term benefits and minimise short-term costs. One, fast remonetisation and early elimination of withdrawal limits. This would reduce GDP growth deceleration and cash hoarding. Two, continued impetus to digitalisation while ensuring that this transition is gradual and inclusive, and appropriately balances the costs and benefits of cash versus digitalisation. Three, following up demonetisation by bringing land and real estate into the GST. Four, reducing tax rates and stamp duties.
This is an analysis and brief overview document on the Survey
This document provides an overview and analysis of the Indian economy in 2011-12. It summarizes the key findings of the annual Economic Survey presented to Parliament, including a slowdown in GDP growth to 6.9% due to weak industrial growth, high inflation that has begun to decline, and a likely fiscal deficit slippage. It also discusses developments in agriculture, industry, fiscal policy, prices, trade and the global economic challenges faced by India.
The document provides an economic outlook and analysis across various sectors in India. It discusses that the RBI kept interest rates unchanged in its recent monetary policy review due to ongoing uncertainties around inflation. While inflation is falling, risks remain from the monsoon season, upcoming general elections, and US Fed tapering. The equity outlook remains positive with expectations of strong corporate earnings growth. Key sectors that are expected to perform well include banking, infrastructure, IT, and pharma. Overall, the analysis maintains a bullish stance on the Indian equity market.
The key direct tax proposals include increasing the surcharge on individuals earning over Rs. 1 crore to 15%, taxing dividend income over Rs. 10 lakhs at 10%, and introducing an equalization levy of 6% on non-resident companies for digital transactions. Notable corporate tax proposals include a concessional 10% tax rate for income from patents developed in India, 100% deduction of profits for 3 years for eligible startups, and phasing out of certain tax exemptions by 2020. The budget also introduced an income declaration scheme and a direct tax dispute resolution scheme.
The new government needs to
- The global investment climate became moderately positive in February, with the outlook on India improving considerably due to deteriorating fundamentals in other emerging markets.
restart the programme in a big way
- Quarterly company results surprised positively against the deteriorating macro scenario. It remains to be seen if this marks a turnaround or short-term improvements.
to meet its fiscal deficit targets and
- Going into March, equities may rally on expectations of a pro-reform government after elections. However, the market will be highly sensitive to the
This document provides an economic update and outlook for India. It summarizes that India's GDP growth slowed to a 10-year low of 4.5% in the third quarter due to declines in agriculture, mining, and manufacturing. Inflation rates have been falling but remain elevated. The RBI recently cut interest rates and expects further monetary easing this fiscal year alongside reforms to revive investment and growth. Equity markets have performed well recently and earnings are expected to grow 12% this year led by private banks, healthcare and consumer companies. The outlook provides sector views, favoring healthcare, banking, and FMCG.
- The passage summarizes Pakistan's economic growth and challenges over recent years. It notes that GDP growth has been stuck at around 3-4% annually, below Pakistan's potential of 6.5%, due to various domestic and external shocks. These include floods, a security crisis, energy shortages, and global economic issues.
- The economy showed modest signs of recovery in 2011-12, with estimated GDP growth of 3.7% compared to 3% the previous year. Agriculture grew 3.1% and manufacturing 1.8% while services grew 4%.
- However, growth remains below potential and structural issues remain like challenges to sustaining high growth, low inflation, and balanced external payments. Re
Role of CFO in Economic Turnaround, Present Macro-Economic Conditions, New Changes in Reforms & Policies, Evolving Role of CFO , Impact of Changes on CFO
The document provides an economic outlook and summary of key markets for May 2014. It discusses expectations for the upcoming general election in India and implications for various asset classes. The equity outlook remains positive on expectations that a reform-oriented government will accelerate the economy and revive the growth and earnings cycle. The document recommends overweight positions in healthcare, IT/ITES, banking, energy, and neutral stances on power utilities and automobiles.
UK economy is showing signs of posting a strong pull-back. China on the other hand is facing the prospects of a slower growth this year. We cover this in the section on *Global Trends* in this month’s issue of Economy Matters.
In the section on *Domestic Trends*, we discuss the trends emanating out of the recent releases on GDP, Balance of Payments, IIP and Inflation during the month of February 2014.
In *Investment Tracker*, we analyse the latest data on investment proposals.
The *Sectoral* spotlight for this issue is on Travel & Tourism, which holds strategic importance in the Indian economy providing several socio economic benefits.
In *Focus of the Month*, we discuss the employment creation challenge that the economy is facing currently. In addition to our own analysis, we have carried articles from eminent experts on the subject.
This document summarizes key fiscal and economic developments in India in 2020-21. It notes that monthly GST collections have reached their highest levels since the introduction of GST. Merchandise exports contracted by 15.7% in April-December 2020 compared to the same period the previous year, with petroleum, oil and lubricants exports contributing negatively. Rural-urban differences in consumer price inflation declined, with food inflation converging. The share of agriculture in India's gross value added at current prices was 17.8% for 2019-20. The document is ready to answer questions on these topics. It provides references to the Indian economic survey and other sources for more details.
India's GDP growth slowed to 7.8% in Q1 2011, lower than expectations, as various domestic and external challenges weighed on the economy. Growth was driven primarily by the services sector, while industrial and investment growth declined due to regulatory issues and inflation pressures. Private consumption remained robust but government spending and exports provided less support amid fiscal consolidation efforts. Overall growth is expected to moderate further in the near term before stabilizing.
National Conference on “Infrastructure Finance – Building for Growth” - INDIA...Resurgent India
Indian economy after registering a robust growth of more than 9% during the period 2005-08, moderated to a growth of 6.7% in 2008-09 on the back of the global financial crisi
The Indian rupee has recently experienced a steep decline in value against other currencies. This document analyzes some of the political, social, and economic reasons behind the rupee's fall. Politically, elected representatives focus more on retaining power by appealing to minority voting blocs rather than long-term economic stability. Socially, policies aimed at empowering farmers and reducing poverty have not improved conditions for most Indians. Economically, a large fiscal deficit from numerous government assistance programs and corruption have undermined the fundamentals of India's economic policies and growth. Upcoming national elections will be crucial for choosing new leadership that can enact reforms to stabilize the rupee and restore confidence in India's economy.
India had a historic general election in 2014 where the BJP party won a majority, the first time a single party has won in over 30 years. This ended the need for coalition governments that had hindered growth. The new pro-reform government under Prime Minister Modi is expected to accelerate economic reforms and improve infrastructure to boost growth. Recent signs show India's economy has bottomed out and is poised for recovery as macroeconomic fundamentals improve.
India's annual economic growth slumped in the January-March quarter to a nine-year low of 5.3% as the manufacturing sector shrank and a fall in the rupee to a record low suggests the economy remains under pressure in the current quarter.
The document provides an economic update and outlook for India. It notes that India's GDP growth was 4.8% in the last quarter, slightly higher than the previous quarter's 4.7% but below the previous year's 6.2%. Industrial production growth slowed to 2% in April 2013. While inflation tapered to 4.7% due to fuel prices, food inflation increased to 7.64% due to higher vegetable prices. The RBI kept interest rates unchanged and will focus on inflation and the current account deficit over growth. Bank credit growth was lower and the rupee depreciated due to reversal of foreign institutional investment inflows.
The document provides an economic outlook and analysis for India. It discusses recent economic data and performance across various sectors in India and globally. Some key points:
- GDP growth improved slightly to 4.8% in Q2 FY14 but remains below 5%. Services sector growth is slowing.
- Inflation remains elevated with WPI at 7.52% and CPI at 11.24% in Nov 2013. Food inflation is a major contributor.
- RBI kept policy rates unchanged in its recent meeting despite higher inflation, expecting food prices to decline. Rate hikes may resume in H1 2014.
- Global growth outlook remains positive which will support equity markets. Recovery is strengthening in the
- Real GDP growth in India slowed to 5.0% in 2013/14 due to the impact of US tapering of quantitative easing, supply bottlenecks, and policy uncertainty. Inflation also moderated to 5.5% in October 2014 from an average of 9.5% in 2013/14 due to tighter monetary policy and lower commodity prices.
- The current account deficit narrowed significantly to 1.8% of GDP in 2013/14 from 4.7% in 2012/13 as a result of the Indian Rupee depreciation and gold import restrictions.
- Lending growth moderated to 11.6% by end-March 2014 and further to 10% by end-September 2014 due
This document summarizes major economic indicators of Bangladesh, including GDP, GNP, per capita income, unemployment rate, inflation rate, interest rates, literacy rate, balance of trade, and remittances. It provides definitions and formulas for calculating GDP, GNP, and per capita income. Charts are included showing GDP growth and per capita income trends over the last 10 years in Bangladesh as well as unemployment rate trends. The document was presented by a student at the University of Dhaka as part of a course on managerial economics.
Currency Outlook 20th january By Swastika Investmartkailash soni
The rupee appreciated against the US dollar and major trading partners due to weak US employment data, but depreciated on the last day of the week due to positive US economic data. Domestically, low inflation and positive company results supported the rupee. The report predicts the rupee will trade neutrally to negatively against the dollar and euro due to weak domestic markets and strength in those currencies, but mixed US data could impact dollar movements. Technical indicators show reversal patterns forming in most currency pairs.
- The rupee has fallen sharply against the dollar since May due to the strengthening dollar and India's large current account deficit. Economic growth slowed to 4.4% in the first quarter of FY14, its lowest rate in four years. Inflation has begun rising due to imported inflation from a weaker rupee.
- The government needs to take steps to attract more dollar inflows, such as issuing bonds targeted at NRIs and encouraging public sector firms to raise funds abroad. A weaker rupee and falling gold imports are expected to reduce the current account deficit and support the rupee's recovery to around 60 by March.
- However, risks remain from any acceleration in the US Federal Reserve's tapering of
The document summarizes recent economic trends in Japan and the Euro Area. It notes that Japan unexpectedly fell into recession in the third quarter of 2014 due to declines in housing and business investment following a tax hike. The Euro Area also saw GDP growth hover in negative territory in the second and third quarters of 2014 due to weak investment and exports, although this partly reflected temporary factors. Both regions face challenges of high public debt, low potential growth, and structural reforms needed to boost sustainable growth.
Role of CFO in the Economic Turnaround - Present Macro-Economic Conditions -...Resurgent India
Over the past few decades, the role of a Corporate CFO has evolved from merely number crunching responsibilities to a big picture thinker involved in nearly every facet of the company
- The document discusses the state of the Indian economy from an investor's perspective. It notes that India has emerged as one of the fastest growing large economies in the world, with GDP growth of over 7% in the first half of 2015-2016.
- Key factors contributing to India's economic growth include a rise in domestic consumption and investment. Inflation has remained below target levels, allowing the central bank to reduce interest rates to support demand. Narrowing current account deficits have also strengthened macroeconomic stability.
- The government is pursuing fiscal consolidation while increasing capital expenditures. Reforms to FDI policy and regulations have led to rising foreign investment inflows. However, challenges remain around stalled infrastructure projects, stressed bank balance
In this issue of Economy Matters, we analyse the recent Fed rate hike and Euro Zone economic prospects, in the section on Global Trends. We have covered data trends in GDP, IIP, Inflation, Monetary Policy and Trade in the Domestic Trends section. Find out the results of 2QFY16 In Corporate Performance section. Taxation section covers the views of Sumit Dutt Mazumder, former Chairman of CBEC on GST. The Sectoral Spotlight for this issue is on Financial Conditions Index for 3QFY16. Read Focus of the Month, to know about ‘Skilling India’, wherein experts from diverse areas present their views.
The document describes the menus and controls of the game Dragon Chronicles: Secret of the Scroll. It includes menus for starting a new game, loading a saved game, viewing credits and tutorials. The tutorials explain the controls like using arrow keys to move and space to interact. It describes gameplay elements like finding armor to increase health, using vents to hide from guards, and different pause menus for saving, adjusting volume or controls.
Role of CFO in Economic Turnaround, Present Macro-Economic Conditions, New Changes in Reforms & Policies, Evolving Role of CFO , Impact of Changes on CFO
The document provides an economic outlook and summary of key markets for May 2014. It discusses expectations for the upcoming general election in India and implications for various asset classes. The equity outlook remains positive on expectations that a reform-oriented government will accelerate the economy and revive the growth and earnings cycle. The document recommends overweight positions in healthcare, IT/ITES, banking, energy, and neutral stances on power utilities and automobiles.
UK economy is showing signs of posting a strong pull-back. China on the other hand is facing the prospects of a slower growth this year. We cover this in the section on *Global Trends* in this month’s issue of Economy Matters.
In the section on *Domestic Trends*, we discuss the trends emanating out of the recent releases on GDP, Balance of Payments, IIP and Inflation during the month of February 2014.
In *Investment Tracker*, we analyse the latest data on investment proposals.
The *Sectoral* spotlight for this issue is on Travel & Tourism, which holds strategic importance in the Indian economy providing several socio economic benefits.
In *Focus of the Month*, we discuss the employment creation challenge that the economy is facing currently. In addition to our own analysis, we have carried articles from eminent experts on the subject.
This document summarizes key fiscal and economic developments in India in 2020-21. It notes that monthly GST collections have reached their highest levels since the introduction of GST. Merchandise exports contracted by 15.7% in April-December 2020 compared to the same period the previous year, with petroleum, oil and lubricants exports contributing negatively. Rural-urban differences in consumer price inflation declined, with food inflation converging. The share of agriculture in India's gross value added at current prices was 17.8% for 2019-20. The document is ready to answer questions on these topics. It provides references to the Indian economic survey and other sources for more details.
India's GDP growth slowed to 7.8% in Q1 2011, lower than expectations, as various domestic and external challenges weighed on the economy. Growth was driven primarily by the services sector, while industrial and investment growth declined due to regulatory issues and inflation pressures. Private consumption remained robust but government spending and exports provided less support amid fiscal consolidation efforts. Overall growth is expected to moderate further in the near term before stabilizing.
National Conference on “Infrastructure Finance – Building for Growth” - INDIA...Resurgent India
Indian economy after registering a robust growth of more than 9% during the period 2005-08, moderated to a growth of 6.7% in 2008-09 on the back of the global financial crisi
The Indian rupee has recently experienced a steep decline in value against other currencies. This document analyzes some of the political, social, and economic reasons behind the rupee's fall. Politically, elected representatives focus more on retaining power by appealing to minority voting blocs rather than long-term economic stability. Socially, policies aimed at empowering farmers and reducing poverty have not improved conditions for most Indians. Economically, a large fiscal deficit from numerous government assistance programs and corruption have undermined the fundamentals of India's economic policies and growth. Upcoming national elections will be crucial for choosing new leadership that can enact reforms to stabilize the rupee and restore confidence in India's economy.
India had a historic general election in 2014 where the BJP party won a majority, the first time a single party has won in over 30 years. This ended the need for coalition governments that had hindered growth. The new pro-reform government under Prime Minister Modi is expected to accelerate economic reforms and improve infrastructure to boost growth. Recent signs show India's economy has bottomed out and is poised for recovery as macroeconomic fundamentals improve.
India's annual economic growth slumped in the January-March quarter to a nine-year low of 5.3% as the manufacturing sector shrank and a fall in the rupee to a record low suggests the economy remains under pressure in the current quarter.
The document provides an economic update and outlook for India. It notes that India's GDP growth was 4.8% in the last quarter, slightly higher than the previous quarter's 4.7% but below the previous year's 6.2%. Industrial production growth slowed to 2% in April 2013. While inflation tapered to 4.7% due to fuel prices, food inflation increased to 7.64% due to higher vegetable prices. The RBI kept interest rates unchanged and will focus on inflation and the current account deficit over growth. Bank credit growth was lower and the rupee depreciated due to reversal of foreign institutional investment inflows.
The document provides an economic outlook and analysis for India. It discusses recent economic data and performance across various sectors in India and globally. Some key points:
- GDP growth improved slightly to 4.8% in Q2 FY14 but remains below 5%. Services sector growth is slowing.
- Inflation remains elevated with WPI at 7.52% and CPI at 11.24% in Nov 2013. Food inflation is a major contributor.
- RBI kept policy rates unchanged in its recent meeting despite higher inflation, expecting food prices to decline. Rate hikes may resume in H1 2014.
- Global growth outlook remains positive which will support equity markets. Recovery is strengthening in the
- Real GDP growth in India slowed to 5.0% in 2013/14 due to the impact of US tapering of quantitative easing, supply bottlenecks, and policy uncertainty. Inflation also moderated to 5.5% in October 2014 from an average of 9.5% in 2013/14 due to tighter monetary policy and lower commodity prices.
- The current account deficit narrowed significantly to 1.8% of GDP in 2013/14 from 4.7% in 2012/13 as a result of the Indian Rupee depreciation and gold import restrictions.
- Lending growth moderated to 11.6% by end-March 2014 and further to 10% by end-September 2014 due
This document summarizes major economic indicators of Bangladesh, including GDP, GNP, per capita income, unemployment rate, inflation rate, interest rates, literacy rate, balance of trade, and remittances. It provides definitions and formulas for calculating GDP, GNP, and per capita income. Charts are included showing GDP growth and per capita income trends over the last 10 years in Bangladesh as well as unemployment rate trends. The document was presented by a student at the University of Dhaka as part of a course on managerial economics.
Currency Outlook 20th january By Swastika Investmartkailash soni
The rupee appreciated against the US dollar and major trading partners due to weak US employment data, but depreciated on the last day of the week due to positive US economic data. Domestically, low inflation and positive company results supported the rupee. The report predicts the rupee will trade neutrally to negatively against the dollar and euro due to weak domestic markets and strength in those currencies, but mixed US data could impact dollar movements. Technical indicators show reversal patterns forming in most currency pairs.
- The rupee has fallen sharply against the dollar since May due to the strengthening dollar and India's large current account deficit. Economic growth slowed to 4.4% in the first quarter of FY14, its lowest rate in four years. Inflation has begun rising due to imported inflation from a weaker rupee.
- The government needs to take steps to attract more dollar inflows, such as issuing bonds targeted at NRIs and encouraging public sector firms to raise funds abroad. A weaker rupee and falling gold imports are expected to reduce the current account deficit and support the rupee's recovery to around 60 by March.
- However, risks remain from any acceleration in the US Federal Reserve's tapering of
The document summarizes recent economic trends in Japan and the Euro Area. It notes that Japan unexpectedly fell into recession in the third quarter of 2014 due to declines in housing and business investment following a tax hike. The Euro Area also saw GDP growth hover in negative territory in the second and third quarters of 2014 due to weak investment and exports, although this partly reflected temporary factors. Both regions face challenges of high public debt, low potential growth, and structural reforms needed to boost sustainable growth.
Role of CFO in the Economic Turnaround - Present Macro-Economic Conditions -...Resurgent India
Over the past few decades, the role of a Corporate CFO has evolved from merely number crunching responsibilities to a big picture thinker involved in nearly every facet of the company
- The document discusses the state of the Indian economy from an investor's perspective. It notes that India has emerged as one of the fastest growing large economies in the world, with GDP growth of over 7% in the first half of 2015-2016.
- Key factors contributing to India's economic growth include a rise in domestic consumption and investment. Inflation has remained below target levels, allowing the central bank to reduce interest rates to support demand. Narrowing current account deficits have also strengthened macroeconomic stability.
- The government is pursuing fiscal consolidation while increasing capital expenditures. Reforms to FDI policy and regulations have led to rising foreign investment inflows. However, challenges remain around stalled infrastructure projects, stressed bank balance
In this issue of Economy Matters, we analyse the recent Fed rate hike and Euro Zone economic prospects, in the section on Global Trends. We have covered data trends in GDP, IIP, Inflation, Monetary Policy and Trade in the Domestic Trends section. Find out the results of 2QFY16 In Corporate Performance section. Taxation section covers the views of Sumit Dutt Mazumder, former Chairman of CBEC on GST. The Sectoral Spotlight for this issue is on Financial Conditions Index for 3QFY16. Read Focus of the Month, to know about ‘Skilling India’, wherein experts from diverse areas present their views.
The document describes the menus and controls of the game Dragon Chronicles: Secret of the Scroll. It includes menus for starting a new game, loading a saved game, viewing credits and tutorials. The tutorials explain the controls like using arrow keys to move and space to interact. It describes gameplay elements like finding armor to increase health, using vents to hide from guards, and different pause menus for saving, adjusting volume or controls.
The document discusses how the WTO system aims to promote open global trade but its rules and regulations have unfairly marginalized least developed countries (LDCs). While trade liberalization has benefited many, it has further disadvantaged LDCs by exposing them to costs and risks without providing significant rewards. LDCs make up over 1/10 of the world's population but continue to be left behind economically despite WTO commitments to increase their prosperity through trade. The document argues that more must be done to integrate LDCs into the global trade system in an equitable way.
Prosumer Partners helps ordinary people achieve extraordinary success by creating sustainable wealth and financial security through ethical secondary income opportunities. They mentor people in Chennai, Bangalore, Mumbai, and Dubai to build a recurring secondary income stream that provides financial freedom, including the ability to retire within 5-7 years. A secondary income is important because most people spend their careers working long hours for someone else's dreams without truly achieving their own goals or having enough free time. Prosumer Partners provides a roadmap to develop a secondary stream of income, including introducing income opportunities, onboarding and induction, helping build dreams, and partnering with people to realize their financial goals.
Transforming Expectations for Treat-Intelligence SharingEMC
Gain insight into a new approach to information-sharing processes for threat intelligence which ensures that data distribution is relevant, actionable, and automated.
RSA Security Briefs provide executives and practitioners with essential guidance on today’s most pressing information-security risks and opportunities. Each Brief is created by a select response team of security and technology experts who mobilize across companies to share specialized knowledge on a critical emerging topic. Offering both big-picture insight and practical technology advice, these papers are vital reading for today’s forward-thinking security leaders.
The document provides an economic and market update for November 2013. It discusses positive performance in global equity markets and stability in the Indian rupee and debt markets in October. The Chief Investment Officer notes that while markets have reached new highs, fundamentals are also improving as earnings growth is catching up to price increases. Some market optimism also reflects speculation around the next elections in India. Overall the outlook is cautiously positive but volatility could increase from unexpected events.
Raghuram Rajan faced challenges as RBI governor to revive India's struggling economy in 2013. He used monetary policy tools like credit controls, forex instruments, and open market operations to boost growth and reduce high inflation. Data analysis showed a decline in inflation, increased GDP growth, reduced current account deficit, and rising forex reserves. Rajan's actions successfully boosted investor sentiment and turned around India's economic fortunes.
From the Desk of the CEO.
The heat is on. While many of us have been vacationing in cooler climes, the Sensex has kept itself rather busy, gaining another 4% during the month of May. The upmove has come largely on the back of better-than-expected corporate results and expectations of a good monsoon. Markets are also taking cognisance of various indicators like improved auto sales, higher steel and cement offtake, public infrastructure spending, etc. which are positive signs of an imminent economic recovery.
Crude prices have silently crept up and are currently hovering at the $50 level, almost double from the January lows. So despite the adverse implications of higher crude prices on the Indian economy, there seems to be some positive correlation between crude prices and the equity markets. Though this pattern may not have always played out in the last few decades, the first few months of 2016 certainly seem to indicate so. The main reason for this is the significantly high weightage that the Energy sector has in indices the world over. When oil plummeted to sub-$30 levels, it seriously impacted the profitability of some of the world’s biggest corporations, not only causing their stock prices to fall sharply, but also impacting the broader markets in general. It also indicated a global recessionary trend, thus affecting investor sentiment and causing them to become nervous and risk-averse. The bounce back in crude has brought the price to a level that makes it profitable for companies to drill, creating a sense of well-being for both, the Energy sector as well as the countries whose economies are dependent solely on oil. Where crude prices go from here remains to be seen.
After several quarters of benign inflation, the WPI rose to 0.34% while retail inflation soared to 5.39% in April 2016. This, coupled with higher oil prices would make it difficult for Governor Rajan to announce a rate cut at the next RBI policy meeting on 7th June. Across the globe however, Janet Yellen’s comments on improving economic data in the US has the markets believing that a rate hike by the US Federal Reserve is a high possibility during its next meeting in mid-June. The outcome of Britain’s referendum on Brexit is also an event that we will be closely watching.
With markets factoring in all the good news for now, conventional logic says that short term investors need to be cautious. But when the stock market catches momentum, all negative predictions may be proven wrong.
There are of course, many more bulls than bears when it comes to a 1 year plus view. Long term investors may continue their investments and look to buy into any dips.
Wish all of you a happy monsoon season.
The document summarizes India's monetary policy. It discusses the goals of monetary policy as achieving low and stable inflation while promoting economic growth. It outlines the various interest rates set by the Reserve Bank of India and tools used to regulate money supply such as cash reserve ratio and statutory liquidity ratio. While monetary policy can help reduce inflation and stabilize the economy, it has limitations in predicting inflationary pressures and ensuring long-term growth. The document concludes by emphasizing the need for monetary policy to support agricultural growth, infrastructure development, and other priorities to ensure inclusive development.
The document provides a summary of the 95th issue of the financialdharma newsletter. It discusses the following key topics:
- The significance of the Urjit Patel Committee report on adopting inflation targeting in India's monetary policy framework.
- Rising income inequality globally and in India based on Gini coefficient measurements.
- Moody's warning about India's ability to absorb rising government debt if economic growth remains low and inflation high.
- Using debt funds to strengthen investment strategies by considering bond duration and interest rate outlook.
The document provides an economic update and outlook for India. It notes that India's GDP growth was estimated at 4.8% for the last quarter, slightly higher than the previous quarter's revised rate of 4.7% but still below 5%. Industrial production grew by only 1.0% for the full fiscal year. Inflation rates have fallen, with WPI hitting a 41-month low of 4.89% in April. The RBI recently cut interest rates, citing lower inflation and slowing growth. However, the economic growth outlook remains cautious as investment activity remains subdued.
The document provides an economic update and outlook for India. It notes that India's GDP growth was 4.8% in the last quarter, slightly higher than the previous quarter's 4.7% but below the previous year's 6.2%. Industrial production growth slowed to 2% in April 2013. While inflation tapered to 4.7% due to fuel prices, food inflation increased to 7.64% due to higher vegetable prices. The RBI kept interest rates unchanged to address inflation risks and the current account deficit given the rupee's sharp depreciation from reversal of foreign institutional investment debt inflows on expectations of reduced US stimulus.
Global equity markets gained in Q4 2013 but declined slightly for the week as markets had an uncertain start to the new year. Asian markets were lackluster amid weak Chinese economic data that showed a deceleration in activity. European markets started cautiously despite positive economic data. US markets edged lower on thin volumes. Indian markets closed 2013 in positive territory but declined for the week on mixed domestic data. The document discusses economic and market performance in recent periods and provides an outlook for 2014, noting signs of stabilization in the Indian economy.
The document provides an economic update and outlook for India from the perspective of an advisory firm. It discusses positive developments in the domestic economy including higher than expected GDP growth in the first quarter and signs of recovery in industrial production. Inflation remains high but fuel prices are declining. The new government is pursuing reforms and the outlook is hopeful for continued economic revival. Globally, recovery is ongoing in the US and Eurozone which supports Indian markets, while falling oil prices are a major positive.
Developments in the monetary policy arenavideoaakash15
The Reserve Bank of India increased key policy rates and the cash reserve ratio to tighten monetary policy and curb inflationary pressures. The repo and reverse repo rates were increased by 25 basis points to 5.25% and 3.75% respectively, while the cash reserve ratio was also raised by 25 basis points to 6%. RBI projected GDP growth of 8% for 2010-2011, with inflation projected to moderate to 5.5%, but highlighted risks from commodity prices, the monsoon, and volatile capital flows. While seeking to contain inflation, RBI said it would ensure adequate liquidity to meet credit demands and support growth.
This document provides an overview and outlook across various sectors in the Indian economy and globally. It begins with a note from the CEO discussing current economic conditions and opportunities from innovation and disruption. Several sections then analyze domestic and global equity markets, debt markets, key economic indicators, and provide outlooks for various sectors in India and globally. The document aims to inform investors on current economic and market conditions.
DT2 - Indian Inflation - Populism, Politics and Procurement PricesNikhil Mohan
- Aggregate demand in India is weak and weakening, contrary to claims by the RBI.
- India's excess inflation is mostly due to high minimum support prices set by the government for agricultural products.
- Inflation in India has peaked and interest rates set by the RBI have also peaked, so there is no justification for the RBI's recent interest rate hikes.
The document discusses various topics related to inflation and monetary policy in India. It defines inflation and the tools used to measure it, including the wholesale price index and consumer price index. It outlines India's monetary policy objectives and tools such as cash reserve ratio, repo rate, open market operations, and statutory liquidity ratio. It also discusses the evolution of India's monetary policy approach and some impacts of interest rate changes.
The document provides an economic outlook and investment advice for investors. It discusses positive developments in the global and Indian economies that are supportive of equity markets. Key points:
- Global growth remains positive, supporting equity markets. The US recovery is strong and the Eurozone is improving.
- The Indian economy is showing signs of recovery, though growth remains below 5%. Inflation spiked but is expected to cool off.
- Elections are typically positive for Indian equities, with markets expecting improved governance. Opinion polls favor the opposition.
- The RBI kept interest rates unchanged despite high inflation, believing prices will fall. Rates may rise slightly in the first half but fall in the second half.
WHEN MONETARY POLICY FAILS, FISCAL POLICY IS USEDSambit Mishra
The document discusses the objectives and tools of monetary policy in India, including maintaining price stability, economic growth, and ensuring credit flows to support the economy. It also discusses trends in interest rates from 2004-2014, noting that rates generally increased from 2004-2007 as inflation rose, then rapidly increased in 2008-2009 due to high inflation, before decreasing from 2009-2010 to stimulate the economy during a recession. Coordination between monetary and fiscal policy is also summarized, with policies generally aligned except during the 2008 financial crisis when views differed on the size of economic stimulus.
The document provides an economic and market update for investors. It discusses positive macroeconomic data from India including rising industrial production and falling inflation. The budget focuses on infrastructure growth. Globally, the US and Europe are recovering while emerging markets are benefiting from foreign inflows. The document recommends remaining invested in equities and outlines positive views for several sectors like banking, energy, and automobiles. It provides a target of 29,300 for the Sensex by the end of the year based on earnings growth expectations.
The document provides an outlook on the Indian market for March 2021. It discusses factors that supported global equity performance in February such as hopes of economic recovery due to increasing vaccination rates. It also mentions that rising US bond yields led to some market corrections last week of February. The document then provides analysis on various economies and sectors, earnings updates, valuation analysis, and investment ideas with rationale. It concludes with mentioning some key risks like rising crude oil prices and surge in COVID cases.
The document provides an overview of the Indian and global macroeconomic environment and financial markets for the week of August 04-09, 2014. Some of the key points summarized are:
- The RBI reduced statutory liquidity ratio requirements, adding Rs. 40,000 crores in liquidity, while keeping interest rates unchanged. Bond yields have cooled off as a result.
- Inflation has been trending downward, but food and vegetable prices remain high. The RBI governor has reiterated the targets of reducing CPI to 8% by January 2015 and 6% by January 2016.
- Fiscal deficit is projected to be 4.5% of GDP for the current year versus the target of 4
The document provides an economic update and outlook for various markets including equity, debt, commodities, real estate, and forex. It discusses recent inflation and growth trends in India and globally. Recommendations are given to overweight sectors like healthcare, telecom and IT while remaining neutral or underweight on others given the domestic and international economic environment.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
1. ECONOMIC ANALYSIS
Economics experts and various studies conducted across the globe envisage India and China to
rule the world in the 21st century. For over a century the United States has been the largest
economy in the world but major developments have taken place in the world economy since
then, leading to the shift of focus from the US and the rich countries of Europe to the two Asian
giants- India and China. Here we will focus on Indian economy as the growth has
GDP : The strengthening of economic activity in the recent years has been supported by persistent
increase in gross domestic investment rates from 22.9 per cent of GDP in 2001-02 to 33.8 per cent in
2005-06. It may also be noted that over 95 per cent of investment in the country during this period was
financed by the domestic savings. The expected real GDP growth in 2007-08 is around 8.5 per cent.
Agricultural GDP growth doubled to around 4 per cent in 2006-07 and is particularly important in Indian
context.
Interest Rates : In an open economy, the domestic interest rate is influenced by international rates, which
in case of India has been on the upswing since 2004. India's interest rates are expected to go up in the
medium term. A higher interest rate may be needed to control the anticipated higher inflation. With
indications of a further hike in the US and the European Central Bank's interest rates, it is more likely that
India will follow suit. Because if India's economic growth is to keep up with that of other countries in a
deregulated market environment, it has to adopt the interest cycle of the global economy.
Inflation : Starting with a rate of 3.98 per cent, the inflation rate in 2006-07 has been on a general upward
trend with intermittent decreases. However, average inflation in the 52 weeks ending on February 3,
2007 remained at 5 per cent. A spurt in inflation like in the current year has been observed in the recent
past in 1997-98, 2000-01, 2003-04 and 2004-05.
2. Inflation, with its roots in supply-side factors, was accompanied by buoyant growth of money and credit
in 2005-06 and 2006-07 so far. While GDP growth accelerated from 7.5 per cent to 9.0 per cent between
2004-05 and 2005-06, the corresponding acceleration in growth of broad money (M3) was from 12.3 per
cent to 17.0 per cent. Year-on-year, M3 grew by 21.1 per cent on January 19, 2007. The industrial
resurgence and upswing in investment was reflected in, and sustained by, growth of gross bank credit (as
per data covering 90 per cent of credit by scheduled commercial banks), for example, to industry
(medium and large) at 31.6 per cent and for housing loans at 38.0 per cent in 2005-06. It was also
observed in year-on-year growth of gross bank credit at 32.0 per cent in September 2006, albeit
marginally down from 37.1 per cent in 2005-06. Reconciling the twin needs of facilitating credit for
growth on the one hand and containing liquidity to tame inflation on the other remained a challenge. RBI
put a restraint on the rapid growth of personal loans, capital market exposures, residential housing beyond
Rs. 20 lakh and commercial real estate loans by more than doubling the provisioning requirements for
standard advances under these categories from 0.40 per cent to 1.0 per cent in April 2006.
Simultaneously, it increased the risk weight on exposures to commercial real estate from 125 per cent to
150 per cent.
Fiscal Policy : Managing fiscal discipline in the midst of competitive demands on public resources and
tax expenditures vis-à-vis varied and often conflicting expectations of stake holders is a complex exercise.
The last three years’ fiscal results, particularly measured against the deficit targets, demonstrate the
effectiveness of managing resources. It is reassuring that deficits have been contained within the
mandated limits. The upswing in growth has appeared to have propelled the economy to ‘take-off’, and it
has been accompanied with a reduction in fiscal deficit from a level of 5.9 per cent of GDP in 2002-03 to
3.7 per cent of GDP in 2006-07. During the same period, revenue deficit has declined from 4.4 per cent of
GDP to 2.0 per cent of GDP. Tax-GDP ratio which was 8.8 per cent in 2002-03 has go up to 11.4 per cent
in 2006-07. The improvement in deficit indicators has been achieved through improvement in tax-GDP
ratio.
Investor’s Confidence : Indian economy has achieved what it has been hoping for quite some time.
Perhaps at no time during the post-liberalization period, Indian economy has shown such kind of
optimism. It is poised to enhance its real economic growth rate in the current year, holding a huge reserve
of foreign exchange that is rather unprecedented, interest rates at an all time low and inflation very much
under control, increasingly robust corporate performance, strong operational performance from the
banking sector, surge in the stock prices and a whole range of reforms right from new norms for issuance
in the primary markets to the setting up of a central listing authority to benchmarking Indian stock
exchanges with the international best practices. All these factors have boosted investor confidence in the
economy.
Employment : Both growth of population and labour force have shown substantial decrease. This is a
positive signal. Little Growth in the organised sector employment has been noticed in the private sector.
Public sector has shown a negative growth. Significant employment generation took place in the tertiary
sector particularly in services industries. Substantial employment growth was observed in the small and
unorganised sector, i.e., in small and tiny enterprises. Self-employment and casual labour continued to
play a pivotal role in rehabilitation of the unemployed.
3. TRADE POLICY
India’s economic performance has continued to be impressive since 2001-02 and growth has
been particularly rapid since 2003-04 averaging over 8.5% with around 9% in 2006-07. This
performance is largely due to unilateral trade and structural reforms, in particular in services
provided by India. Rapid economic growth has also resulted in an improvement in social
indicators such as poverty and infant mortality.
India is preparing herself for becoming an economic superpower, and it must expedite socio-
economic reforms and take steps for overcoming institutional and infrastructure bottlenecks
inherent in the system. Availability of both physical and social infrastructure is central to
sustainable economic growth.
Since independence Indian economy has thrived hard for improving its pace of development.
Notably in the past few years the cities in India have undergone tremendous infrastructure up
gradation but the situation in not similar in most part of rural India. Similarly in the realm of
health and education and other human development indicators India's performance has been far
from satisfactory, showing a wide range of regional inequalities with urban areas getting most of
the benefits. In order to attain the status that currently only a few countries in the world enjoy
and to provide a more egalitarian society to its mounting population, appropriate measures need
to be taken.
All these issues show that India is growing and it still has tremendous opportunity to grow even
at a faster rate.
MONETARY POLICY
The RBI is the central bank of India and decides on the monetary policy. Monetary policies are
related to the rules framed by the RBI to control the liquidity, inflation and interest rates. It uses
different types of tools such as Cash reserve ratio, statutory liquidity ratio, Repo rate etc. to
control the inflation and liquidity in the economy.
The liquidity in the economy has increased sharply in the year 2004 that is why the inflation
during that time period also increased with a higher rate. To miyigate the inflation RBI
effectively used the CRR tool and has been increasing the CRR since then. At a value of less
than 5% during 2003, CRR now stands at 7%. The RBI is now able to restrain the inflation
whithin 4%.
Liquidity conditions remained fairly comfortable up to early September 2006 with the unwinding
of the Central Government surplus balances with the RBI and continued intervention in the
foreign exchange market to maintain orderly conditions. During 2006-07, up to September 8,
2006, RBI had not received any bid for repo under Liquidity Adjustment Facility (LAF) and the
continuous flow of funds under reverse-repo indicated a comfortable liquidity position. In 2005-
4. 06, the reverse repo rate had been raised by 25 basis points each time on April 29 and October
26, 2005, and on January 24, 2006 to reach 5.50 per cent. In 2006-07, it was raised again by 25
basis points each time on June 9 and July 25, 2006. There was some tightness with the onset of
the festival season and due to high credit expansion and outflows on account of advance tax
payment. From mid-September through October, 2006, while RBI had to provide
accommodation to some banks through repo facility, with reverse repo operations
simultaneously, in net terms, RBI absorbed liquidity from the system.
CRR
8.00
7.00
6.00
5.00
4.00
3.00
2.00
CRR
1.00
0.00
Exchange Rate
Indian Rupee against the USD remained stable between Rs 40.00/41.00. Indian Rupee traded
mostly below Rs 41.00 in June 2007. Throughout the month Rupee gained against the USD but
remained volatile and crossed Rs 41.00 exceptionally in only one trading session. The rupee
ranged between Rs 40.47/41.01 averaging at Rs 40.8 in June 2007, showing weakness towards
the last trading sessions of the month. The central bank continues to maintain its limited
intervention in the forex market until the inflationary pressures are minimized. In June 2007 INR
against the Euro demonstrated less volatility than it did against the USD. It peaked at Rs 55.09
and remained above Rs 55.00 level in the penultimate trading sessions before attaining a level
below Rs 55.00. However it averaged at Rs 54.7 in June2007.
5. Challenges faced by Indian Economy
Currently Indian economy is facing these challenges:
Sustaining the growth momentum and achieving an annual average growth of 7-8 % in
the next five years.
Simplifying procedures and relaxing entry barriers for business activities.
Checking the growth of population; India is the second highest populated country in the
world after China. However in terms of density India exceeds China as India's land area
is almost half of China's total land. Due to a high population growth, GNI per capita
remains very poor. It was only $ 2880 in 2003 (world bank figures).
Boosting agricultural growth through diversification and development of agro processing.
Expanding industry fast, by at least 10% per year to integrate not only the surplus labour
in agriculture but also the unprecedented number of women and teenagers joining the
labour force every year.
Developing world-class infrastructure for sustaining growth in all the sectors of the
economy.
Allowing foreign investment in more areas
Effecting fiscal consolidation and eliminating the revenue deficit through revenue
enhancement and expenditure management.
Empowering the population through universal education and health care. India needs to
improve its HDI rank, as at 127 it is way below many other developing countries'
performance. The UPA government is committed to furtering economic reforms and
developing basic infrastructure to improve lives of the rural poor and boost economic
performance. Government had reduced its controls on foreign trade and investment in
some areas and has indicated more liberalization in civil aviation, telecom and insurance
sector in the future.