India’s high food inflation rate may start to ease in coming weeks

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Despite two successive record seasonal harvests, food inflation in India remains stubbornly high, prompting the government to announce this week that it will be soon importing certain vegetables. While the inflation rate is expected to ease in coming weeks, prices are unlikely to fall drastically any time soon. Retail inflation rose to 7.3% in September — […]

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Weekly Wrap – Miles to go before breathing easy

India’s central bank left key interest rates unchanged as widely expected, while keeping policy accommodative to help pull the coronavirus-ravaged economy out of its worst slump in four decades. Reserve Bank of India Governor Shaktikanta Das said there were some encouraging signs of a business turnaround and activity could return to growth in the January-March […]

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India’s economic recovery will be gradual among rising Covid infections – RBI governor

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India’s central bank governor Shaktikanta Das said on Wednesday that the nation’s economy is set for a gradual recovery as efforts to reopen businesses are confronted with rising infections of Covid-19. Addressing a webinar of the Federation of Indian Chambers of Commerce and Industry (FICCI) on the path forward from the pandemic, Das noted that some […]

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India’s forex reserves climb up as government advisory panel suggests range for fiscal deficit targets for Centre, states

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India’s foreign exchange reserves surged by USD 3.883 billion to touch a lifetime high of USD 541.431 billion, RBI data showed.  on Friday. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. The country’s reserve position […]

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India’s central bank says economic contraction likely to extend to fiscal second quarter

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The contraction in economic activity in India that was visible in the first quarter of the 2020-2021 fiscal that ended in June is likely to prolong into the second quarter, according to the Reserve Bank of India (RBI). The uptick in economic indicators visible in May and June — which was visible after a nationwide Covid-induced lockdown […]

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RBI says management of surplus foodgrain the biggest challenge for India

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Management of surplus foodgrain in India has become a major challenge, the Reserve Bank of India (RBI) said in its annual report. “India has now reached a stage in which surplus management has become a major challenge… Going forward, shifting the terms of trade in favour of agriculture is the key to sustaining this dynamic […]

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Fitch Ratings joins S&P and Moody’s in trimming India outlook to `negative’

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Fitch Ratings retained its sovereign rating for India at the lowest investment grade of BBB negative, and trimmed its outlook to ‘negative’ from ‘stable’, citing a sharp Covid-induced deterioration of the country’s growth and fiscal metrics. In a statement, Fitch said: “The coronavirus pandemic has significantly weakened India’s growth outlook for this year and exposed […]

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Government asks RBI to remove sugar from negative list as virus hits consumption

The Covid-19-triggered lockdown has resulted in a drastic fall in sugar consumption across the country, as most sweetmakers were on a sabbatical. The lockdown has also accumulated farmer arrears. Against such stark realities, the central government is believed to have advised the Reserve Bank of India (RBI) to remove the beleaguered sugar sector from its […]

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