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
Why does inflation lead to higher interest rates
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?
I could scarcely believe my eyes. I hadn't seen anything like that before. The number literally jumped off the page.Even my CEO was caught by surprise.You see, we are part of an international network of financial publishers. We keep track of what our peers from across the world are doing. Especially, the number of orders they get daily.Close We are used to seeing them sell 1,000 to 1,200 subscriptions per day on the day of a new launch. However, what I saw from one of the international colleagues that day was truly extraordinary. related news Double Your Income series: What kind of returns should you expect? Double Your Income series: Growth or value? What can make you richer in this bull market They had managed to sell a whopping 20,000 subscriptions of a new launch in one day flat. Effectively, they had outperformed the group average by a factor of 20x.Just to put things in perspective, you are a healthy business if you sell 10k to 15k subscriptions for the entire year.And … [Read more...] about Double Your Income series: Put into motion cause that leads to wealth-creation effect
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