Indian Economy

Need to reduce the regulations that govern business: Raghuram Rajan

Chief Economic Advisor Raghuram Rajan admitted that Indian economy suffers due to slow decision making processes in the government. Rajan also incised the Indian economic system for creating barriers to improve the business environment in the country while speaking to Karan Thapar on Devil's Advocate.

Here is the full transcript of the interview:

Karan Thapar: Hello and welcome to Devil's Advocate. How adequately has the government responded to the sharp fall in the rupee as well as the state of the economy? Those are the two key issues I shall raise today with the Chief Economic Advisor Raghuram Rajan.

Dr Rajan, let's start with the sharp fall in the rupee. Both you and P Chidambaram have said this is part of a global phenomenon where countries with large current account deficits are experiencing a hit on their currency and that it is not India specific. How then do you respond to the view that that's only a partial explanation. The core explanation is the collapse in India's growth and the unrealistic, some would say even the unconvincing response of the Indian government, which has shaken the confidence of investors in India's short term future. ...more    

Govt's slow decision making process hurting economy: Raghuram Rajan

New Delhi: Chief Economic Advisor Raghuram Rajan has admitted that Indian economy suffers due to slow decision making processes in the government. Rajan also incised the Indian economic system for creating barriers to improve the business environment in the country while speaking to Karan Thapar on Devil's Advocate. Below is an excerpt of the interview: Karan Thapar: The government knows it needs to act, fails to act and is well...  

Economy is recovering, more reforms soon: Chidambaram

New Delhi: Finance Minister P Chidambaram announced on Thursday that the government plans to announce more economic reforms soon. He asked people to not panic saying the economy is recovering. "Economy is stronger than what it was this time last year. Inflation too is low," the Union Minister said. Chidambaram also said that the government was planning to announce a review of the foreign direct investment (FDI) limits as also...  

Sensex slips below 19,000 level; down 214 points

Mumbai: Tracking weak global trends, the BSE benchmark Sensex on Thursday fell by 213.97 to close below the 19,000 mark after nearly two months on sustained selling by foreign funds, mainly in the auto sector, even as Finance Minister P Chidambaram said more reforms are on the anvil. Extending losses for the third straight session, the 30-share index commenced the day on a weak note at 18,815.57 and plunged further...  

The Last Word: What are the implications of the rupee's slide?

Karan Thapar discusses the burning issue of the past few days - the rupee's freefall and its impact on the Indian economy. ...

Fitch revises India's outlook to stable from negative

New Delhi: Bringing cheer to the government struggling to arrest rupee's slide, global rating agency Fitch on Wednesday revised India's sovereign credit outlook to stable from negative. Taking note of the government's efforts to contain fiscal deficit, Fitch Ratings revised India's Outlook to Stable from Negative and affirmed 'BBB-' rating. "The revision of the Outlook to Stable reflects the measures taken by the government to contain the budget deficit, including...  

April industrial output grows at 2 pc vs 2.5 pc in March

New Delhi: The industrial production growth has slipped to 2 per cent in April on account of dismal performance of manufacturing, mining and power sectors coupled with lower output of capital goods. The factory output measured in terms of index of industrial production (IIP) had seen a contraction of 1.3 per cent in April last year, according to official data released in New Delhi on Wednesday. Meanwhile, the IIP growth...  

Rupee recovers from record low; up 60 paise as Fitch revises outlook

Mumbai: Raing agency Fitch has revised India's rating from negative to stable. Fitch has said that fiscal deficit targets will be met, which will strengthen the rupee. The rupee on Wednesday gained 60 paise to close at 57.79 against the dollar after Fitch revised India's credit outlook. Also, heavy dollar selling by some big corporates and US dollar weakening against the euro overseas also aided the rupee, forex dealers said....  

Sensex down 102; weak IIP, inflation data offset rupee gain

Mumbai: Benchmark indices extended their losing streak on Wednesday as the latest macro-economic indicators showed that a decent recovery was still some way off. The dour April industrial output and May inflation readings offset cheer from the partial rebound in the rupee. The Sensex ended the day at 19041, down 102 points over its previous close, after touching a low of 18969. The Nifty finished at 5760, down 29 points...  

Rupee freefall: Latha Venkatesh on the crisis

In a roller coaster ride, the rupee on Tuesday hit life-time low of 58.98 against dollar but erased a major part of losses to close at 58.39 after RBI intervened in the forex market to stem the slide in the local currency that caused much concern to the government, the markets and the common man. ...

Rupee ends at 58.39 after hitting record low

Mumbai: In a roller coaster ride, the rupee on Tuesday hit life-time low of 58.98 against dollar but erased a major part of losses to close at 58.39 after RBI intervened in the forex market to stem the slide in the local currency that caused much concern to government, markets and common man. The rupee still closed 24 paise lower at 58.39 compared to Monday's close, extending losses for fifth...  

Rupee hits all-time low of 57.37 against dollar

Indian rupee hit a new record low of 57.37 on Monday morning trade, after opening at 57.25 per dollar on Monday as against Friday's closing of 57.06 a dollar. Earlier, it had hit touched an all-time low of 57.32 per dollar in June 2012. Agam Gupta of Standard Chartered Bank feels strong non farm payroll data could further support dollar strengthening. According to him, there is an expectation of RBI...  

India tops global attrition chart; one in four to switch jobs

New Delhi: As the growth trends firm up in job market, India is set to witness highest attrition rate globally with possibility of one in four employees switching jobs in the country, a survey said on Friday. The survey conducted by global human resource and management consultancy major Hay Group also said that the concerns among the Indian employees about fairness of their compensation and career objectives could be the...  

New FDI rules a setback for foreign, local retailers

Mumbai: New rules requiring foreign supermarkets to set up their own warehouses and stores in India are likely to further delay the entry of companies like Walmart Stores Inc, increase costs and hurt cash-strapped local retailers eager to partner with foreign companies. India allowed foreign chains to enter the country to set up retail stores in September 2012, but ambiguities in the policy means that so far, no foreign company...  

Rupee up 15 paise against dollar at 56.69

Mumbai: The rupee on Friday recovered by 15 paise to 56.69 in early trade today at at the Interbank Foreign Exchange on dollar selling by exporters and some banks. Besides, a weakening dollar against euro and yen in the global market ahead of the release of US employment data for May and the European Central Bank and the Bank of England both keeping monetary policy unchanged, also supported the rupee....  

Sensex ends in red as rupee weakness weighs

Mumbai: Benchmark indices ended the week on a bearish note, as concerns over the weakness in rupee weighed on sentiment. Indices were volatile throughout Friday, peaking around noon and then retreating in towards the end of the session to close at 19429.23, down 90.26 points over the previous close, and 282.32 points down from the intra-day high of 19711.55. The Nifty closed at 5881, down 40.40 points over the previous...  

FM for reviving animal spirits, starting stalled projects

Mumbai: Asking India Inc to revive its "animal spirits", Finance Minister P Chidambaram on Thursday announced setting up of a committee headed by Anil Swarup to re-start 215 large projects worth over Rs 7 lakh crore that have been stalled for various reasons. "After extensive discussions today, the Prime Minister has approved the appointment of a very senior officer to the Cabinet Secretariat, Anil Swarup, to track these 215 stalled...  

Sensex down 49 points as RIL falls

Mumbai: The BSE benchmark Sensex on Thursday closed nearly 49 points down at a new one-month low after RIL failed to cheer market with its AGM announcements and other bluechips Bharti Airtel and Infosys saw profit-booking, amid rupee touching 57-level against the US dollar. After a weak start, the 30-share index closed 48.73 points lower, or 0.25 per cent, at 19,519.49, its lowest level since April 30. It had gained...  

Rupee fails to maintain initial gains against dollar

Mumbai: The rupee failed to maintain its initial gains against the American currency and was quoted lower by one paisa to 56.45 per dollar in the late morning trade on fresh dollar demand from banks and importers. The rupee resumed higher at 56.43 per dollar against the last closing level of 56.44 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to 56.31 per dollar on...  

Growth can rebound to 7 pc in 2 years: Montek

New Delhi: The economic growth can rebound to 7 per cent in two years if corrective steps that are needed be taken, Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Tuesday. While addressing at the 30th anniversary lecture of CUTS, Ahluwalia said, "If we take the corrective steps whatever necessary, we will get back to 7 per cent (economic growth rate). I don't say this will happen this year...