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Saturday, May 4, 2024
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MacroSutra

An optimistic IMF has upped its projection for global growth, but don’t celebrate just yet…

IMF has increased its growth projection by 0.2 percentage points, but tightening of monetary policy world over & rising debt distress among developing nations could drag down growth.

India wants rupee to go global, but low appetite for the currency & rise of Chinese Yuan obstacles

Moreover, India’s tight capital controls, management of the rupee and, importantly, a smaller share of global exports run counter to aspirations of making it an international currency.

Not just tomatoes. Pulses, cereals & spices behind India’s food inflation — 3.35% in May to 4.7% in June

Food price hike driven by higher rates of vegetables, pulses & their products, spices, eggs, meat and fish. While jump in vegetable prices expected, inflation in cereals & their products worrying.

With banking sector upbeat & fresh pvt investments emerging, India’s economy is getting back on track

While bank credit looks healthy, there are signs of stress. Pvt investments show green shoots but merchandise exports are contracting. Foreign investors continue to find India attractive.

Heatwave & heavy rainfall or typical annual spike? What’s causing tomato prices to skyrocket

India’s retail inflation eased to a 25-month low of 4.25 per cent in May from 4.7 per cent in the previous month. Food and...

India-US trade ties deepening, but Modi may need to commit to easing protectionist policies

Both India & US will benefit from trade diversification initiatives and their common concerns about China’s coercive actions could further strengthen their economic and strategic relations.

Fiscal health check — how India’s 4 big poll-bound states stack up

Ahead of assembly polls in Rajasthan, MP, Telangana & Chhattisgarh, analysis of metrics like committed expenditures, additional spending, etc, reveals their fiscal strengths & weaknesses.

Inflation eased, but here’s why RBI’s unchanged policy repo rate is likely to stay for some time

While status quo on rates was expected, there was difference of opinion on stance, which was also left unchanged to focus on withdrawal of accommodation to ensure inflation aligns with 4% target.

Manufacturing revival, agriculture & construction expansion — what’s behind 7.2% GDP growth

Better-than-expected GDP growth in FY23 made possible by 6.1% jump in January-March quarter. Private consumption revival, sustained investment growth key to maintaining momentum.

Inflation may be easing, but near-future upside risks mean RBI should leave interest rates unchanged

Factors like unfavourable weather, uncertainty over oil prices, demand from China’s re-opening & intensification of geo-political conflicts could pose upside risks to inflation outlook.

On Camera

Stop targeting Galgotias University students. Focus on politicians instead

Going through their Instagrams and dissecting their ‘statements’ is not the astute political commentary you think it is—it is time for us to back off from targeting 20-year-olds.

High capacity usage, fresh borrowings & new orders — why FY25 could be a big year for pvt investment

Companies are borrowing more from banks and public. Economists say high capacity utilisation & growing new orders could set stage for renewed investment push by India Inc.

China builds road through Shaksgam Valley, India registers protest

New Delhi has, in past, too, objected to Chinese construction activities in Shaksgam Valley. Work in this strategic region gathered pace after the 2017 Doklam stand-off.

Frontrunner is letting the challenger define this poll campaign. Modi still hasn’t found a big theme

A theme has not yet emerged for BJP & people see lack of a contest, which makes it unexciting. For all these reasons, 2024 is turning out to be an unexpectedly theme-less election.