Economy

Rupee slips by 21 paise to 61.65 in early trade on Monday

Rupee slips by 21 paise to 61.65 in early trade on Monday

Weakness in the value of Indian rupee against international currencies is expected to continue in the short run as demand for dollar from corporates is still high.

In early trade on Monday, rupee weakened by 21 paise to Rs 61.65 per US dollar, as against Friday's close of Rs 61.44 per US dollar. On last Friday, the local currency had gained 29 paise against the US dollar after some reports suggested that the US government shutdown would lead to postponement of tapering of the Federal Reserve's stimulus programme.

Banks to offer cheaper retail loans during festive season

Banks to offer cheaper retail loans during festive season

Indian banking sector would offer a package of cheaper loans for retail investors during the imminent festive season, Reserve Bank of India (RBI) Governor Raghuram Rajan said.

Mr. Rajan said the government was pursuing talks with the central bank to decide the package for retail investors for the upcoming festive season. He added that the package would be announced soon.

Indian banks are expected to offer cheaper loans to customers to provide a much-needed boost to demand for consumer durables.

Indian temples reluctant to share details of gold they have

Indian temples reluctant to share details of gold they have

Temple authorities as well as devotees in India are resisting revealing their gold reserves, as requested by the government.

As the government is struggling to arrest the widening current account deficit (CAD), Indians' craze for gold continues soaring. Despite the government's several steps to arrest demand for gold, Indian still are buying as much as 2.3 tonnes of gold, on average, per day.

Govt. notifies roll-out of GAAR from April 2016

Govt. notifies roll-out of GAAR from April 2016

The government on Thursday notified the General Anti-Avoidance Rules (GAAR), which were first introduced in Budget of FY2012-13 to check tax avoidance.

The anti-avoidance tax rules will take effect from April 2016 and apply to companies availing tax benefits of at least Rs 3 crore in the relevant year.

Rajan’s first policy statement shows inflation is RBI’s No. 1 enemy

Rajan’s first policy statement shows inflation is RBI’s No. 1 enemy

By increasing the LAF repo rate (the rate at which the Reserve bank of India (RBI) lends short-term funds to subordinate banks), the central bank’s new governor Raghuram Rajan has declared that inflation continues to be the the number 1 enemy of the central bank.

In his first policy statement on September 20, Raghuram Rajan increased the LAF repo rate by 25 basis points (bps).

While cosumer price index (CPI) stood at 9.5 per cent in August, wholesale price inflation (WPI) was recorded at an uncomfortable rate of 6.1 per cent.

Onion prices flare up again

Onion prices flare up again

After slipping to Rs 50 a kg around a fortnight back, onion prices have once again soared to as high as Rs 75-80 a kg in many parts of India.

The biggest reason behind the drastic rise in prices of the vegetable is severe shortages in supply. Onion's biggest producers, such as Maharashtra, suffered heavy rainfall earlier this year, causing a drastic drop in output.

RBI unlikely to take any rate action as inflation jumps to 6-month high

RBI unlikely to take any rate action as inflation jumps to 6-month high

India's headline inflation jumped to its six-month high of 6.1 per cent in the month of August, prompting experts to predict that new Reserve Bank of India (RBI) governor Raghuram Rajan would likely maintain status quo in the central bank's upcoming monetary policy review.

Analysts had pegged their average expectation for headline inflation or wholesale price index (WPI) for August at 5.8 per cent. In July, WPI was recorded at 5.79.

India to invest $4.3 billion in World Bank bonds

India to invest $4.3 billion in World Bank bonds

The government of India has approved a proposal to invest around 4.3 billion US dollar in the bonds of the World Bank Group.

The union cabinet approved the proposal to invest in the bonds during its meeting on 12 September 2013. The investment will ensure that the country receives additional cheaper funding from the multilateral agency for infrastructure related projects. The approval comes after the country nears its upper borrowing limit and more investment would allow the country to increase borrowing limits.

Petrol price rise by Rs 1.63 per litre on Friday

Petrol price rise by Rs 1.63 per litre on Friday

According to the latest reports, the petrol prices in India have risen by Rs 1.63 per litre in the country, recording its seventh increase since June.

The price is without local sales tax or VAT and will come into effect from midnight on Saturday, according to oil firms in the country. The price of petrol will rise by Rs 1.96 to Rs 76.06 per litre and it will cost Rs. 83.63 per litre in Mumbai. Data shows that the petrol prices have risen by a massive Rs. 10.80 per litre since June without taxes and Rs. 13.06 per litre inclusive of taxes in Delhi.

Indian economy enjoys better-than-expected industrial output growth

Indian economy enjoys better-than-expected industrial output growth

The release of latest official statistics showed that India's sluggish economy has started taking momentous and growing at a better rate than estimated.

Data released by India's statistics ministry showed that the country's industrial output grew 2.6 per cent year-on-year in the month of July this year, much better than analysts' median forecast of 0.5 per cent contraction.