New Delhi: Encouraged by the declining trend in inflation, the Finance Ministry on Tuesday made a case for further rate cut by the Reserve Bank to boost sagging growth. "I think we need to look at statement made by RBI Governor during the last policy review where he had stated that RBI is closely monitoring inflation figures and if there is dramatic change in inflation figures then RBI will take that in to consideration during its next review," Department of Economic Affairs Secretary Arvind Mayaram said here.
"So, we do believe that RBI would look at this figure (inflation coming below 5 per cent in April)," he said. RBI is scheduled to announce mid-quarter review of monetary policy for 2013-14 on June 17.
Inflation fell to 41-month low of 4.89 per cent in April on account of decline in prices of food items, including fruits and vegetables. Based on the Wholesale Price Index (WPI), it stood at 5.96 per cent in March. In April, 2012, it was 7.50 per cent.
April recorded the lowest level of inflation since November, 2009 when it was 4.78 per cent. In order to accelerate economic growth, RBI earlier in May cut key interest rates by 0.25 per cent....
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03:41 PM, May 14, 2013
Mumbai: Dashing expectations of an interest rate cut that have risen because of the recent softening in inflation, as well as decline in crude and gold prices, the Reserve Bank of India on Thursday said there is "very limited" space for that in fiscal 2013-14 because of multiple global and domestic risks, notably inflation. A day before its annual monetary policy statement, the bank released the country's macro economic report...
11:10 PM, May 02, 2013
Srinagar: Continued governance deficit has given Jammu and Kashmir a tag of "begging bowl", PDP patron Mufti Mohammad Sayeed on Sunday claimed, and said development scenario of the state can be changed "perceptibly" by a new government as happened in Bihar. The PDP leader said there are instances within the country when the development scenario was changed "perceptibly" by a new government. Sayeed gave example of Bihar to buttress his...
03:59 AM, Apr 29, 2013
New Delhi: Prime Minister Manmohan Singh on Sunday stressed the need to build a climate favouring enterprise and investment while observing that the current economic downturn was only temporary. "I believe that we are facing only a temporary downturn that we should correct as quickly as possible...more needs to be done, especially for building a climate that is perceived to be friendly to enterprise," Singh said inaugurating the 8th Civil...
05:15 AM, Apr 22, 2013
Washington: Finance Minister P Chidambaram on Friday said the three stimulus packages India had provided to the economy in the wake of the global financial crisis post 2008-09 lead to a higher fiscal deficit, inflation and slowdown in growth. He said the government is going to take more steps on the supply side to bring down the inflation and ensure 7 per cent growth rate in 2014. The three stimulus...
03:10 AM, Apr 20, 2013
Manila: Growth in developing Asia is seen gaining momentum in 2013, powered by rising domestic consumption and intra-regional trade, but authorities need to ward off risks of inflation and asset bubbles arising from strong capital inflows, the Asian Development Bank (ADB) said. Tensions over long-standing border disputes in Asia, deepening austerity fatigue in the euro zone and political risks linked to wrangling over the US debt ceiling are the main...
08:57 AM, Apr 09, 2013
Finance Minister P Chidambaram suggested on Tuesday that the government is unlikely to raise the import tax on gold further to avoid gold smuggling and would instead introduce inflation-indexed instruments to help curb a record current account deficit. ...
12:44 PM, Apr 02, 2013
India's economy is capable of absorbing $50 billion in foreign direct investment per year, Finance Minister P Chidambaram said on Monday. Addressing a news conference during a visit to Tokyo promoting India as investment destination, Chidambaram also reiterated that growth in Asia's third-largest economy was expected to accelerate in the current fiscal year to March 2014. ...
02:25 PM, Apr 01, 2013
ndia's manufacturing sector witnessed the slowest rate of expansion in 16 months in March as power outages hampered production activity and decline in new business orders, an HSBC survey said on Monday. The HSBC India Manufacturing Purchasing Managers' Index (PMI) - a measure of factory production - stood at 52 in March down from 54.2 in February. ...
11:20 AM, Apr 01, 2013
The man widely expected to be the next Reserve Bank of India (RBI) governor favours clipping the autocratic power of the role and giving more say to a monetary policy committee. Raghuram Rajan, who in 2005 predicted the global financial crisis, also believes that inflation of around 5 per cent is "reasonable" in a developing economy, rejecting the notion of a "new normal" for India of 7-8 per cent. ...
03:16 AM, Mar 16, 2013
Seeking to dispel fears over the state of economy, Finance Minister P Chidambaram on Thursday said the country will return to high growth of 7 per cent in two years and promised adequate public spending to stimulate it. Replying to a debate on the Budget 2013-14 in the Lok Sabha, he said the government was committed to ensuring reduction of fiscal deficit from 5.2 per cent to 3 per cent...
11:15 PM, Mar 14, 2013
India with its robust legal structure, banking system and skilled manpower is the new economic icon of emerging powers and is sure to be on track again for 7 per cent growth, External Affairs Minister Salman Khurshid said on Sunday. ...
03:13 AM, Mar 11, 2013
Expressing confidence that growth will bounce back to 7-8 per cent, Prime Minister Manmohan Singh said on Friday that opposition should be more objective in assessing his government. Again taking on the opposition, an acerbic Manmohan Singh also said that "men of envy" disparage everything. ...
03:59 AM, Mar 09, 2013
India has all the requirements to return to a GDP growth rate of 8 per cent in the coming years, Deputy Chairman of the Planning Commission Montek Singh Ahluwalia said, while highlighting that current account deficit is a big problem right now. ...
11:38 AM, Mar 07, 2013
Finance Minister P Chidambaram on Monday said the government was hopeful about raising Rs 40,000 crore from stake sale in public sector undertakings (PSUs) in the financial year beginning April 1, 2013. ...
02:27 AM, Mar 05, 2013
Aiming to restart the growth engine, Finance Minister P Chidambaram on Monday said he will monitor every quarter the investment plans of public and private sector entities that are sitting on huge cash piles. "Each PSU is required to fill up that proforma, tell us what their capex targets are next year. We will monitor them closely beginning from April, 2013. Every quarter I will monitor what they are investing,"...
11:32 PM, Mar 04, 2013
Finance Minister P Chidambaram on Friday said that the UPA will face 2014 General Elections on the plank of high growth and low inflation. Speaking to Shereen Bhan of CNBC TV18 in an exclusive interview, Chidambaram said that there isn't and never was a danger of rating downgrade for India. ...
06:49 PM, Mar 01, 2013
A senior officer of World Bank on Wednesday praised the high growth rate achieved by Bihar which indicates that an "encouraging" environment of progress has been created for faster economic development of the hitherto laggard state. ...
12:29 AM, Feb 28, 2013
The government is badly cash-strapped and the growth is the lowest in the decade and India have a high fiscal deficit. ...
11:57 PM, Feb 25, 2013
India's slowest growth in a decade could be worse than anticipated, as preliminary data released on Thursday showed the economy set to have grown 5 per cent in fiscal year ending next month, underscoring the urgent need for reforms to boost growth. ...
07:45 PM, Feb 07, 2013
