Heightened competition across sectors — from telecom to two-wheelers — is robbing firms of pricing power and they are struggling to pass on the increased costs of raw materials.
Trade skirmishes raise fears of a global currency war. A look at how it can affect India and other economies.
“India’s growth story at a fast pace is likely to continue as per assessment of all credible agencies. Obviously, a high trajectory growth leads to a higher revenue,” Jaitley said in his blog
The country’s economy grew at a seven-quarter high of 7.7 per cent in the three months ended March 2018, helped by higher government spending and investment.
On Thursday, the Karnataka government announced a Rs 34,000-crore scheme waiving defaulted crop loans up to Rs 2 lakh taken by 17.32 lakh farmers in the state till December 31 last year.
India is not in a bear market yet. But the risks are high enough for investors to turn vigilant.
Although India’s debt affordability is relatively weak, the average maturity of debt is close to 10 years and over 96 per cent of it is in local currency.
According to FPI fund flow data sourced from CDSL, the net outflows in the calendar 2018 (till June 28) aggregated to an all-time high of Rs 46,195 crore, even higher than the outflow of Rs 41,216 crore witnessed in 2008 — during global financial crisis.
According to the central bank, CAD for the quarter ended March 2018 was at $13 bn (1.9 per cent of GDP) as against $2.6 bn (0.4 per cent) in Q4 of 2016 -17, but moderated marginally from $13.7 bn (2.1 per cent of GDP) in the preceding quarter.
The SBI report has said India has only one decade to change its status into a developed country and will need to focus on education, failing which the much-hailed ‘demographic dividend’ will turn into a disadvantage.
Talking about unemployment in the country, Chidambaram said, “So far, nobody has bought the innovative idea that ‘frying pakoras is also a job’.” He also added that demonetisation and GST have had an adverse impact on the Indian economy.
GDP growth rates for pre-2011-12 years, making it impossible to compare the new growth data with the growth during the UPA years.
While the net FPI outflow in April stood at Rs 15,561 crore ($2.35 bn) and Rs 29,775 crore ($4.4 bn) in May, the aggregate for the first five months this year amounted to a net outflow of Rs 32,078 crore ($4.4 bn).
The Nikkei/IHS Markit Services Purchasing Managers’ Index fell to 49.6 in May from April’s 51.4, sinking below the 50-mark that separates growth from contraction.
The country had recorded GDP growth of 7.1 per cent in the previous financial year (2016-17). Growth is projected to rebound to 7.5 per cent this year.