World Bank has revised India’s GDP projection for current fiscal to 7% from previous estimate of 6.6%. Pick-up in agriculture & govt spending should lift growth in the coming quarters.
UPS seems more fiscally prudent than Old Pension Scheme, but reverses New Pension System’s equitable coverage. More spending on pension may limit space for spending on productive avenues.
In the April-June quarter, elections, govt spending slowdown & heatwave are expected to have contributed to slower growth. Going forward, rural demand may see a pick-up.
Bangladesh, a major export market for India, is already grappling with inflation & unemployment. The unrest can worsen the situation, impacting import demand.
Weak US jobs data signalling slowdown, interest rate hike in Japan, geopolitical tensions may trigger problems for India’s markets. RBI is prudent in holding interest rates for now.
A Bank for International Settlements survey shows that, compared to last yr, world economies seems more likely to issue Central Bank Digital Currency (CBDC) in medium term than short term.
The full budget retains focus on fiscal consolidation. In her budget speech, finance minister mentioned the intent will be to fix fiscal deficit with debt-GDP ratio on a declining path.
With a favourable macro-fiscal backdrop, the finance minister can use the additional fiscal space to either hasten the path to consolidation or support the sectors with subdued growth.
Inclusion of Indian bonds on J.P. Morgan’s emerging markets index may lead to more foreign investment & lower borrowing cost. Dollar inflows could imply rupee appreciation & higher liquidity.
RBI’s latest financial sector report card highlights drop in NPAs, capital buffers for banks & better asset quality for NBFCs. But new sources of risk, like climate change, have emerged.
While the commission didn’t mention provisions under which IndiGo's market domination would be examined, Competition Act 2002 prohibits abuse of dominant position by any enterprise.
It is argued that India-Israel ties are moving from buyer–seller dynamic to one focused on joint development & manufacturing partnership, a shift 'more durable' than traditional arms sales.
Don’t blame misfortune. This is colossal incompetence and insensitivity. So bad, heads would have rolled even in the old PSU-era Indian Airlines and Air India.
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