The Indian economy has grown by leaps and bounds after attaining Independence in 1947. The history of trade and commerce in the Indian subcontinent can be divided into many phases — deindustrialization induced by colonization, socialist central planning in the aftermath of Independence and free market economics after the liberalization reforms of 1991.India’s share of the world economy slipped from around 25 percent in 1700 to 4.2 percent in 1950. A century under colonial rule had sapped the country’s entrepreneurial spirit. The country was forced to divert its raw materials to feed the mechanized factories that had sprung up in Britain during the industrial revolution. Poverty and famine was rampant.After the British left Indian shores, the newly elected government charted a course for the country that entailed capital controls and central planning, much along the lines of the Soviet Union. Even though the ruling dispensation at the time had pledged … [Read more...] about The India growth story: Here’s how some macro indicators have fared since 1947
Balanced 95 direct growth
Sharp depreciation in the rupee is likely to help the domestic steel industry lower imports and boost exports in the coming months, which in turn may improve the country's overall steel trade balance, a report said.The weaker rupee is also likely to translate to higher landed cost of steel imports, which in turn should support domestic prices, rating agency Icra said in its report.The domestic currency's unabated fall continued for the sixth straight session Wednesday, hitting yet another closing low of 71.75, down 17 paise against the US currency as surging oil prices and weak trend in emerging market currencies weighed on sentiments.Close Icra noted that in the first quarter of FY19, steel exports dropped by over 33 percent, whereas imports grew by over 11 percent, and consequently the country turned a net steel importer, after having been a net exporter for the last two years. related news PM Narendra Modi arrives in Kanpur to chair first meeting of National Ganga Council … [Read more...] about India’s overall steel trade balance may improve on weak Rupee: ICRA
Rahul AgarwalIn its latest Monetary Policy Committee (MPC) meeting on December 5, the Reserve Bank of India kept key rates unchanged at 5.15 per cent (lowest in nine years, after five straight cuts with a cumulative 135 bps reduction this calendar year, to boost the country’s sagging economy.RBI retained its 'accommodative' policy stance, which suggests that this is a pause rather than an end to the loosening cycle, and it still has room for a rate cut. Core inflation, which excludes energy and food items, slid beyond a seven-year low of 3.47 per cent, which clearly indicates that there is hardly any demand for non-food items in the market.Close Usually, a rate cut helps revive economic growth as it allows retail customers to avail cheaper loans and works like a big booster for the large industrial sector, who will be able to avail bulk loans at lower interest rates. related news Reliance forms a base, recommend delta appreciating based … [Read more...] about Are the RBI’s repo rate cuts enough to reinforce GDP growth?
With the US imposing additional 25 percent duty on imports worth USD 34 billion from China, certain Indian products may become more competitive, the Confederation of Indian Industry (CII) said today.An analysis by the industry chamber revealed that India should focus on the US market for items in the categories of machinery, electrical equipment, vehicles and transport parts, chemicals, plastics and rubber products.“India can focus on numerous goods for expanding its exports to the US and China markets following the hike in duties by both countries on imports from each other,” CII said.Close Top exports from India to the US which are covered in the list of items for which tariffs have been hiked include pumps, parts of military aircraft, parts for electrodiagnostic apparatus, passenger vehicles of 1500-3000 cc, valve bodies and parts of taps, said the chamber. related news PM Narendra Modi arrives in Kanpur to chair first meeting of National Ganga Council … [Read more...] about US-China trade war can make Indian products competitive
The Securities and Exchange Board of India (SEBI) has rejected a plea from the lenders of Karvy Stock Broking (KSBL) that requested depositories to return the securities pledged by the broker to them.ICICI Bank, IndusInd Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank and Bajaj Finance had granted loans to Karvy on pledged client securities. Their total exposure stands at more than Rs 1,800 crore.According to an order issued by the regulator on December 13: "In the absence of corresponding trade instruction, the pledging of securities of such clients is also unauthorised and, hence, in law not treated as a valid pledge."Close ICICI Bank, IndusInd Bank and HDFC Bank had moved the Securities Appellate Tribunal (SAT) early in December stating that many of these securities had been used to borrow money from them, and pleaded with the tribunal to either get the securities back to them or put them in an escrow account to protect their funds. related news Sun Pharma's Halol … [Read more...] about Karvy case | SEBI rejects lenders’ plea for relief