Govt's first advance estimates peg India’s nominal GDP growth at 8.9%, lowest since Covid-hit 2020-21 & lower than 10.5% assumed at start of year. This could put pressure on fiscal deficit target.
RBI's Financial Stability Report & Report on Trend & Progress of Banking in India show growing inter-connectedness between banks and non-bank financial companies could pose systemic risk concerns.
Apart from these factors, in the new year, food prices will continue to be vulnerable to global uncertainties & weather events, while household borrowings from banks will remain steady.
Govt, RBI term IMF’s exchange rate re-classification as arbitrary. They also disagree with its assertion that India’s general govt debt-GDP ratio could exceed 100% of GDP in medium term.
RBI has retained its inflation projection at 5.4% for the current year. Uncertainties in food prices and volatility in global crude oil prices continue to keep 4% target out of reach.
With tax revenue not doing as well as needed, govt has few choices before it: reduce subsidy-led revenue expenditure, cut back on growth-oriented capex, or miss its fiscal deficit target.
While indicators of urban demand are growing at a sharp pace, rural consumption is in slow lane. However, manufacturing, mining and construction have all seen double-digit growth.
Indian govt's status paper presents a consolidated picture of country's debt position & emphasises the need to improve liquidity in the debt market by diversifying the investor base.
In Rajasthan & Telangana, inflation remains above 6%, while Chhattisgarh & MP see relief. Despite variations, political parties in all states assuring voters of subsidies, cash transfers.
Capital expenditure of 23 states grew by 52% in April-September 2023 over same period last yr, but discontinuation of GST compensation, tapering of grants could weigh down some states.
She’s perhaps the only artist that one still has to offer a ‘reason’ for liking. No one bats an eye if you like Harry Styles or Beyonce. But god forbid you express your love for Swift publicly.
The 125 APAs include 86 Unilateral APAs (UAPAs) and 39 Bilateral APAs (BAPAs). The total number of APAs since the start of the APA programme has risen to 641, with 506 UAPAs and 135 BAPAs.
As the BJP heads for a likely third successive term in power, it's fascinating to debate how true it looks to the original proposition: a party with a difference.
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