Market Pulse News

Market Pulse

Date Heading Details
30-Jul-2021   09:19 Hrs IST Inflation to come down under 6 percent mark in July: CEA <p align="justify">Chief Economic Advisor (CEA) K V Subramanian has said headline inflation will come down under the 6 percent mark in July itself but will stay at an elevated level of over 5 percent for some time. Such an outcome will get the price rise back into the upper-end of the target band given to RBI, he said, adding that consumer price inflation had breached the mark for three consecutive quarters last fiscal because of supply side issues like challenges in movement of goods.</p><p align="justify">He said ‘With reasonable probability, I expect this month the (inflation) print to come less than 6 percent.' Right after data for May showing inflation at 6.4 percent had come out, Subramanian said he had predicted it will cool down in internal meetings and also during deliberations with the regulator. He added the sequential momentum in the number is range-bound despite the challenges posed by factors like commodity price rises.</p><p align="justify">He said in FY21, inflation was impacted because of the first wave of the pandemic which lasted longer, while the second wave saw distributed lockdowns and did not have a deep impact on inflation. The RBI has been holding rates to aid growth despite the surge in inflation. However, after the recent data prints, concerns have been expressed over the price rise. The next monetary policy meeting of the central bank will be held during August 4 - 6. On the growth front, he said the FY22 number should be within the ballpark of 10.5 percent as estimated by the finance ministry earlier. It can be noted that the RBI had revised down its estimate to 9.5 percent given the reverses of the second wave.<br></p>
29-Jul-2021   09:37 Hrs IST India likely to hit growth rate of 6.5-7% in FY23: CEA <p align="justify">Chief Economic Adviser (CEA) K V Subramanian has said that India is expected to hit a growth rate of 6.5-7 percent in 2022-23 and accelerate further to 8 percent in the subsequent years on the back of reforms undertaken by the government. He also said the government is expected to meet the fiscal deficit target of 6.8 per cent in the current fiscal despite pressure on revenue collections.</p><p align="justify">CEA said ‘Our projection is that from FY'23, we should be hitting a growth of 6.5-7 per cent... accelerating from there onwards hitting between 7.5 and 8 per cent as the impact of all these reforms is felt both on the investment rate, which will start touching 40 per cent, and the incremental capital output ratio, basically productivity, which will also improve.'</p><p align="justify">Subramanian further said the supply-side reforms undertaken by the government in sectors such as agriculture, labour, export PLI scheme, change in MSME definition, creation of the bad bank and privatisation of public sector banks, among others, are going to push growth in the future. Besides, he said, linking of reforms to additional funding by the Centre to States would encourage them to undertake reforms that will push growth.<br></p>
28-Jul-2021   09:45 Hrs IST IMF cuts India's GDP growth forecast to 9.5% for FY22
27-Jul-2021   09:40 Hrs IST India's GDP growth likely to be 8.8 to 9% in FY22: Care Ratings
26-Jul-2021   09:22 Hrs IST India will continue to attract high foreign investments in current fiscal: Piyush Goyal
23-Jul-2021   09:37 Hrs IST India's inflation situation 'very alarming': Kaushik Basu
22-Jul-2021   09:42 Hrs IST Collection ratios in securitised pools dip during 2nd wave of Covid-19 pandemic: Crisil
20-Jul-2021   09:15 Hrs IST Economic growth during FY22 to be around 11% as projected in Economic Survey: CEA
19-Jul-2021   09:37 Hrs IST India's economy to start witnessing growth of 6.5 to 7% from fiscal 2023 onwards: CEA
16-Jul-2021   09:24 Hrs IST Tapering second wave of COVID-19 brightens near-term prospects of Indian economy: RBI