India Economy

Russian invasion's multi-dimensional impact, and India's meek acceptance of the damage done to its economy

India needs deeper fiscal reforms

Decision to cost Rs 1,00,000 cr a year for central government, says Finance Minister after 'criticism/appraisal' of decision.

The loss to the exchequer due to the recent excise duty cuts will have to be borne through additional market borrowings, says Bloomberg.

The dividend payment comes after the economy comes under stress from the war in Ukraine and fears for the world economy.

The average headline inflation is set to accelerate to a nine-year high at 6.9 per cent in FY23, and the Reserve Bank may go for more rate hikes during the fiscal, a domestic ratings agency said

The government's request could complicate the RBI's policy of withdrawing liquidity from the market, which marks a shift away from an ultra-loose monetary stance.

Money may move out of rate-sensitive stocks into the less-affected sectors

The rate hike was expected in June, but clearly the central bank sees inflation path as being quite ominous to trigger such an action.

The MPC has focused on preventing inflationary expectations from un-anchoring in an increasingly uncertain environment.

A coal shortage could aggravate power cuts in many states, leading to economic growth losing momentum.

Both sides agreed that rapid changes in the geopolitical environment highlight the need for joint in-depth strategic engagement

All things considered, might it have been better and cheaper, shed less blood, and avoided a huge refugee problem if Russia had been allowed a buffer zone in Eastern Europe, wonders T N Ninan

The central bank earlier this month started to move away from its ultra-loose monetary policy.

The deteriorating world outlook has added to the complexity of macroeconomic policy-making

Sluggish recovery in consumption demand, uncertainties of Ukrainian war cited

Food and oil prices push inflation to 17-month high

Next RBI monetary policy stance likely to be followed by shallow rate hike cycle, with the repo rate being increased by 25 bps each in August and September 2022.

In its first monetary policy announcement of 2022-23, the RBI projected inflation to be at 5.7 per cent this financial year. Real GDP growth for the year estimated at 7.2 per cent

The system is stabilising and efforts for simplification and strict compliance are seen in collections.