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?
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
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
China's central bank raised its daily guidance rate for the yuan by the most in nearly 15 months on August 28, its latest move to put a floor under the currency as a trade war with the United States grinds on.But the near 0.7 percent jump in the official mid-point fixing sparked more corporate demand for cheaper dollars, capping the yuan's gains in the spot market.The People's Bank of China (PBOC) confirmed market suspicions on Friday by announcing it had started changing the way it calculates the mid-point earlier in August, a sign authorities are wary of letting the yuan weaken further after a record 10 straight weeks of losses.Close But market watchers say the yuan will come under ongoing depreciation pressure as the Sino-US trade battle deepens and China continues to ease policy to support its cooling economy. related news Hong Kong leader Lam heads for Beijing as pressure mounts at home Congressional panel ask Google, Apple if apps like TikTok disclose non-US ties US … [Read more...] about China raises yuan mid-point most in 15 months, spurs dollar buying
Contrary to popular belief that rupee depreciation helps exporters, currency volatility not always brings benefits for the fraternity, EEPC India said."Our view has been that it is a stable currency that helps exporters, providing them with predictability of dealing with the buyers. Any fluctuation and volatility on either side does not help," EEPC India chairman Ravi Sehgal said in a release.Engineering Export Promotion Council of India (EEPC) said the country's engineering export growth shrunk to single digit at 9.4 percent in July, from sharp increases in the previous few months even as the rupee was depreciating against the US dollar during the month.Close It was a demonstration that a stronger dollar is not the only growth driver and does not always lead to export momentum, EEPC India said in an internal study recently. related news PM Narendra Modi arrives in Kanpur to chair first meeting of National Ganga Council US-China trade deal cuts tariffs for Beijing promise of … [Read more...] about Rupee depreciation not always leads to export growth : EEPC