Indicators
Surging crude may take CAD past 2% of GDP, say economists
Economists predict that India's Current Account Deficit (CAD) will increase in the second half of the fiscal year, surpassing 2% of GDP. The CAD for the June quarter was 1.1% of GDP, lower than expected, but the gap widened due to a contraction in the trade deficit. Rising crude oil prices, particularly for Russian crude, which accounts for a third of India's fuel imports, are a major factor contributing to the widening CAD. If oil prices average $100 per barrel in the second half of the fiscal year, the CAD could reach 2.1% of GDP.
Surging crude may take Current Account Deficit past 2% of GDP: Economists
The current account deficit (CAD) for the June quarter in India was 1.1% of GDP, lower than expected, but economists anticipate a significant increase in the second half of the fiscal year due to rising crude oil prices and shrinking exports. Crude oil prices play a crucial role in determining the CAD, and with prices rising and supply-side cuts by OPEC, the CAD is expected to worsen.
No inflation risk from latest spike in oil prices: Economists
"Unless retail fuel prices change, there is no direct impact of higher oil prices on Consumer Price Index. However, there will be some marginal impact in the form of higher input costs," said Aditi Nayar, chief economist, Icra.
UK economy stronger than estimates in 1st quarter: data
It is now thought that the UK economy grew by 1.8 % between the final quarter of 2019 -- or before the start of the Covid pandemic -- and the second quarter of this year, the ONS added Friday. It previously said the UK economy had shrunk slightly over the period.
India to grow at 6.5% on average for the rest of this decade: Chief Economic Advisor
V Anantha Nageswaran said that India is unlikely to witness higher growth like it had seen between 2003 and 2008 when the economy grew 8.5-9%, supported by benign global conditions.
Govt's gross debt rises 2.2% QoQ to Rs 159.53 lakh cr in Q1
The Indian government's total gross debt increased by 2.2% to Rs 159.53 lakh crore in the April-June quarter of this fiscal year, according to a finance ministry report. Public debt accounted for 89.5% of the total liabilities during the quarter. The report also highlighted that trading activities in the secondary market were concentrated in the 7-10-year maturity bucket, with private sector banks being the dominant trading segment.
India poised to grow at average 6.5 pc per annum over 2023-30: CEA
The Indian economy is expected to grow at an average of 6.5% annually between 2023 and 2030, according to the Chief Economic Advisor V Anantha Nageswaran. He emphasized the need for India to plug into the global supply chain and make itself attractive for the China-plus one strategy.
Core sector growth rises to a 14-month high of 12.1% in August
Economists say that the strength in the index of eight core industries, which constitutes 40% of the index of industrial production, is likely to translate into stellar IIP growth in August.
India’s foreign exchange reserves dip $2.34 bn to $590.7 bn
India's foreign exchange reserves have decreased by $2.335 billion to $590.702 billion, according to the Reserve Bank of India. Foreign currency assets dropped by $2.55 billion to $523.40 billion, while gold reserves increased by $307 million to $44.31 billion. Reserve position in the IMF decreased by $11 million to $5.02 billion.
India's eight core sectors' growth output up 12.1% in August
"The production of all Eight Core Industries (namely, Cement, Coal, Crude Oil, Electricity, Fertilizers, Natural Gas, Refinery Products and Steel) recorded positive growth in August 2023 over the corresponding month of last year," said the release.
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India's fiscal deficit for April-August at Rs 6.43 lakh crore, widens to 36% of FY24 aim
India's fiscal deficit for the first five months of the current fiscal year, ending in August, reached 6.43 lakh crore rupees, equivalent to 36% of the annual estimates, according to government data. This represents an increase from the 32.6% deficit reported during the same period the previous year.
Credit growth in agri, allied activities improves to 16.6 pc in Aug: RBI data
The Reserve Bank data also showed that credit to industry registered a growth of 6.1 per cent (year-on-year) in August 2023 compared to 11.4 per cent a year ago. Among major industries, credit growth (y-o-y) to basic metal and metal products and textiles accelerated in August 2023. However, the credit growth in chemicals and chemical products, food processing and infrastructure decelerated.
Credit growth may moderate to 13-13.5 pc this fiscal: Report
Credit growth in India is expected to moderate to 13-13.5% this fiscal year, but improve slightly to 13.5-14% next year as the economy picks up pace, according to a report by Crisil Ratings. The moderation in credit growth is driven by low demand in wholesale credit, which constitutes 60% of overall credit. Retail credit demand will continue to rise this year, while corporate credit demand is expected to pick up in the next fiscal year due to capex revival.
Net claims of non-residents on India rise to USD 379.7 billion in June quarter: RBI
According to data from the Reserve Bank of India (RBI), net claims of non-residents on India increased by USD 12.1 billion to USD 379.7 billion in the June quarter. The rise in net claims was primarily due to an increase in foreign-owned financial assets in India. The data also showed that reserve assets accounted for 64.2% of India's international financial assets at the end of the quarter. The RBI noted that the ratio of India's international assets to international liabilities slightly decreased compared to the previous quarter and the same period last year.
India's current account deficit widens sequentially on higher trade deficit
India's current account deficit (CAD) widened to $9.2 billion in Q1FY24, equivalent to 1.1% of GDP on a sequential basis. Yet it narrowed on a YoY basis, compared to $17.9 billion in Q1FY23. India's foreign exchange reserves increased by $24.4 billion, and net foreign direct investment decreased to $5.1 billion.
India retains 40th rank in Global Innovation Index 2023
The government's various departments, such as the Department of Science and Technology, the Department of Biotechnology, the Department of Space, and others, have played vital roles in enriching the National Innovation Ecosystem. The Atal Innovation Mission has also significantly contributed to expanding this ecosystem, read the press release.
