New Delhi: Surging capital inflows, booming stock markets and a fast-appreciating currency suggest the India story is again shining after a dismal 2011. Dig a little deeper, and problems afflicting Asia's third-largest economy remain largely unabated and unaddressed. Inflationary risks remain and a political logjam continues to hem in reforms, clouding the economic outlook. "Nothing has happened on the policy front to justify this mood," said Andrew Kenningham, an economist...
11:16 PM, Feb 11, 2012
New Delhi: Finance Minister Pranab Mukherjee says though food inflation has moderated the country is not out of the "woods totally", asserting inflationary pressures must be brought down to a tolerable and acceptable level before Indian economy can revert to high growth. "In the last 20-22 months food inflation has been obstinate. Food inflation reached as high as 22 per cent in February 2010. From December onwards the pressure has...
05:36 AM, Feb 06, 2012
New Delhi: The Indian government on Tuesday revised economic growth for 2010-11 down to 8.4 per cent from the earlier estimate of 8.5 per cent. "The Gross Domestic Product (GDP) at factor cost at constant prices in 2010-11 has registered a growth of 8.4 per cent over the previous year," according to provisional data released by the ministry of statistics and programme implementation here. The finance ministry said in the...
03:35 AM, Feb 01, 2012
New Delhi: Amid signs of moderation in price rise situation in the country, the January inflation numbers are likely to drop below 7 per cent, said Chief Economic Adviser Kaushik Basu. "Inflation figures are going down. The January figure, which you will get in middle of February, my expectation is that it is going to be below 7 per cent ," he said. Basu, who also heads a Prime Minister...
07:05 PM, Jan 31, 2012
New Delhi: Food inflation remained in the negative zone for the fourth week in a row, at (-)1.03 per cent for the week ended January 14, on account of cheaper vegetables. Food inflation, as measured by the Wholesale Price Index (WPI), was at (-)0.42 per cent in the previous week. It was above 17 per cent in the corresponding week of 2011. According to the official data released on Friday,...
12:16 PM, Jan 27, 2012
Mumbai: Reserve Bank of India Governor Duvvuri Subbarao said on Tuesday it would be difficult to predict the timing, pace and magnitude of any interest rate cuts. The RBI will be very circumspect about how rate cuts should roll out when they start, he said, adding the central bank would also have to look at the fiscal deficit before cutting rates. The bank will look at how Tuesday's cut in...
04:57 PM, Jan 24, 2012
New Delhi: The Reserve Bank of India (RBI) cut the cash reserve ratio (CRR) by 50 bps to 5.50 per cent which will be effective from January 28 and held repo rate steady at 8.5 per cent. The move will eases tight liquidity in the banking system and underscore a policy shift from fighting inflation to reviving growth. The CRR cut will infuse Rs 32,000 crore into banks. The reverse...
11:09 AM, Jan 24, 2012
The RBI has increased interest rates 13 times since March, 2010, to contain inflation and India Inc has been demanding a cut in the rates to arrest declining economic growth. ...
07:49 AM, Jan 24, 2012
New Delhi: Amid slowing economic growth, the Reserve Bank of India (RBI) is reviewing its credit policy on Tuesday. RBI is not expected to cut interest rates at its review as it remains worried about inflation, but it may cut the cash reserve ratio (CRR) for banks as a way to relieve tight liquidity, a move that would cheer markets as a sign of easing intent. At the policy meet...
07:25 AM, Jan 24, 2012
Mumbai: Indicating that it may not tweak interest rates in Tuesday's policy review, the Reserve Bank of India (RBI) on Monday said it will try to strike a balance between the need for promoting growth and containing inflationary expectations. The RBI said that GDP growth during the current fiscal is likely to fall below its earlier projection of 7.6 per cent, while inflation, which is still a cause for concern,...
07:09 PM, Jan 23, 2012
New Delhi: Overlooking the demand of India Inc to lower interest rates, the Reserve Bank in its policy review may refrain from cutting policy rate as the inflation of manufactured goods is still high. "I don't see moderation in the interest rate (in the coming policy). CRR (Cash Reserve Ratio) cut I am not hopeful," SBI Chairman Pratip Chaudhuri said. "I think there would be strong measures to indicate that...
11:20 AM, Jan 22, 2012
New Delhi: Food inflation remained in the negative zone for the third straight week, at (-)0.42 per cent for the week ended January 7, mainly due to fall in prices of onion and vegetables. Food inflation, as measured by the Wholesale Price Index (WPI), was at (-) 2.90 per cent in the previous week. It was above 16 per cent in the corresponding week of 2011. According to the official...
12:28 PM, Jan 19, 2012
New Delhi: India's headline inflation slowed in December to a two-year low as food price pressure eased dramatically, but the RBI is expected to leave interest rates on hold next week as manufactured products inflation edged up from November. The wholesale price index (WPI), the main inflation gauge, rose 7.47 per cent from a year earlier, slowing from a 9.11 per cent rise in November, roughly in line with the...
01:40 AM, Jan 17, 2012
Catch the day's top stories on India at 9 with Rajdeep Sardesai. ...
11:56 PM, Jan 16, 2012
The Chairman of the Prime Minister Economic Advisory Council explains the factors that led to the decline in inflation. ...
03:40 PM, Jan 16, 2012
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