Market Pulse

Date Heading Details
27-Jan-2020   09:17 Hrs IST India can end up with real GDP growth of 5% this financial year: Bibek Debroy <p align="justify">Amid the current economic slowdown, the chairman of PM's Economic Advisory Council Bibek Debroy has said that India can end up with a real Gross Domestic Product (GDP) growth of 5% this financial year (FY20) excluding the inflation rate. He added that next year, the GDP growth rate could be anything between 6-6.5%. He also said that in the present scenario achieving a 9% GDP growth will be difficult, the aspirational growth rate could be between 6.5-7%.</p><p align="justify">He said that at present, Indian economy is growing in an environment which is somewhat protectionist and has declining exports. He said the period during which the country grew at high GDP growth rates like 9%, the exports-to-GDP ratio was 20%. But now with developed countries resorting to protectionism and after the collapse of the WTO, contribution of exports to GDP in a large way does not seem possible. He further said with India being strong in services and not manufacturing, the country will have to give some to get some. It is a quid pro quo situation particularly in a regional trade bloc kind of arrangement.</p><p align="justify">Regarding taxation regime, Debroy said that the country is moving towards stable direct tax regime without any exemption. Goods and Services Tax (GST) is still work in progress. GST was supposed to be revenue neutral. But the government has lost revenue post-GST implementation, which is not tenable. He added that when both direct tax and GST rates get stabilised in future, a day might come when there would be no need to present budgets in the Parliament. On the high cost of capital, he said it will continue to be so as it is a scarce resource in India.<br></p>
24-Jan-2020   09:18 Hrs IST RBI conducts purchase, sell government securities in 4th special OMO auctions <p align="justify">The Reserve Bank of India (RBI) in its fourth special open market operation (OMO) auctions has bought Rs 10,000 crore worth of long-term securities and sold Rs 2,950 crore worth of short-term government bonds. Earlier, the RBI had said it will simultaneously purchase and sell government securities under OMO of Rs 10,000 crore each.</p><p align="justify">In the OMO purchase auction, the RBI received bids worth Rs 26,887 crore for two types of securities -- 7.32 per cent-2024 and 6.45 per cent-2029 -- but accepted only Rs 10,000 crore of bids. For 7.32 per cent-2024, it got 157 bids and accepted 40 bids. The RBI got 147 bids for 6.45 per cent-2029 bonds but accepted 105 bids. The cut-off yield for 7.32 per cent-2024 was 6.408 per cent, while for 6.45 per cent-2029, it was 6.5780 per cent.</p><p align="justify">The RBI offered to sell two government securities -- 7.80 per cent-2021 and 7.94 per cent-2021 -- through the OMO. It received Rs 35,375 crore of bids but accepted Rs 2,950 crore of bids. In terms of number of bids, the central bank received 85 bids for 7.80 per cent-2021 and 70 bids for 7.94 per cent-2021 but accepted 3 and 7 bids, respectively. The cut-off yield for 7.80 per cent-2021 was 5.6714 per cent and for 7.94 per cent-2021 was 5.7192 per cent.<br></p>
23-Jan-2020   09:17 Hrs IST Ind-Ra pegs India's economic growth rate at 5.5% for 2020-21
22-Jan-2020   09:20 Hrs IST India working on ways to have fairer, equitable terms in trade relations: Piyush Goyal
21-Jan-2020   09:19 Hrs IST IMF slashes India's growth estimate to 4.8% for 2019
20-Jan-2020   09:17 Hrs IST Goal of making India $5 trillion economy by 2024 ‘difficult but not impossible': Nitin Gadkari
17-Jan-2020   09:28 Hrs IST India's economy to grow by 5.7% in FY20: UN Report
16-Jan-2020   09:18 Hrs IST India's real fiscal deficit may be higher at 4.5-5% of GDP in FY20: Garg
15-Jan-2020   09:18 Hrs IST FICCI President urges govt to pump economy by increasing investments to arrest slowdown
14-Jan-2020   09:38 Hrs IST Government likely to address inverted duty structure to boost manufacturing