In a world flooded with central bank liquidity yet fraught with economic uncertainty, gold will preserve value for the Reserve Bank of India.
The government and RBI have addressed the supply side by providing adequate liquidity support to the non-banking finance company sector. But with cash flows drying up, many borrowers may be forced to default. Addressing the demand side now will complete the circle and facilitate the smooth flow of credit through the system once again.
There are several signs that India's economy is undergoing a sustainable turnaround that promises to take it to a higher growth trajectory. But there are significant risks, including the possibility of a fickle Monsoon that cannot be wished away. The rain gods, Indian policy-makers, industrialists and human resource managers seem to be coming together on the same page. The green shoots of growth in India's economy seem to be pointing towards a sustained recovery after several false dawns and red [...]
The Narendra Modi government and the Reserve Bank of India (RBI) have taken major steps to bring recalcitrant promoters to book and clean up the $210-billion bad loan crisis plaguing the Indian banking system. These can address the issue for now but privatisation is not politically feasible. The scandal over fugitive billionaire Nirav Modi flying away to an unknown destination leaving behind unpaid loans of $1.8 billion has brought the festering bad loan crisis in the Indian banking system to [...]
RBI Governor Urjit Patel may be able to cut rates but only later this year. We take a look at what this would mean for the Indian economy. When will Reserve Bank of India (RBI) Governor Urjit Patel cut interest rates? Speak to analyst, economist or businessman; that will be among his top two or three concerns. The background The central bank dashed hopes for a rate cut in December when the six-member Monetary Policy Committee (MPC), which sets rates, [...]
Employment intensive sectors such as agriculture, housing, tourism, textiles and retail must flourish and grow, writes a policy expert. Narendra Modi donned an unexpectedly huge challenge on himself and every citizen of India to completely disrupt and totally metamorphose our economy and society. With no Indian untouched by this move and by massively utilising social media platforms, television and radio, the Prime Minister is determined to be connected directly to each one of us in a most unprecedented manner. In [...]
The questions on everybody’s lips are: When will the RBI cut rates? And when will banks pass on RBI’s previous rate cuts to customers? The logic behind those questions is evident. The short-term economic forecasts are not very encouraging. The Reserve Bank of India (RBI) expects the country’s GDP to grow at 7.1 per cent in 2016-17, a sharp half percentage point lower than its previous growth estimate of 7.6 per cent. This contraction in growth estimates is mainly because [...]
India’s proactive Act East policy hinges heavily on the ASEAN free trade group and it is the many emerging economies in this collective that offer growth opportunities for Indian companies. The Association of South-East Asian Nations (ASEAN) comprises of the Philippines, Indonesia, Singapore, Malaysia, Brunei, Thailand, Cambodia, Laos, Myanmar and Vietnam. India’s focus on a strengthened and multi-faceted relationship with ASEAN was reinvigorated at the 12th ASEAN India Summit in Nay Pyi Taw, Myanmar, in November 2014, when Prime Minister [...]
A policy expert analyses if India’s current rate of growth is any cause for worry or a sign of sustainable recovery. India increasingly attracts positive attention from foreign sources. This is evident when one meets with groups of foreign investors who see India as an attractive investment opportunity. This renewed investor interest in itself is not surprising given the rather uncertain and downbeat conditions in a large number of advanced and emerging economies. However, in domestic circles, there is a [...]
The frayed nerves have calmed; the markets have stabilised; and investor attention has turned from the fallout of Brexit to the flight path of the Monsoon clouds over India and the fairly good probability of the long awaited GST Bill finally going through the Rajya Sabha and becoming law.
More than a month after the unexpected vote in favour of Brexit, economists, analysts and policy planners are unanimous that that Britain’s shock decision to exit from the European Union (EU) is unlikely to cause any major long-term damage to the Indian economy as it is still very dependent on domestic consumption, which is mostly insulated from global even.