Economy

RBI unlikely to cut interest rates at its June 17 meeting

RBI unlikely to cut interest rates at its June 17 meeting

The Reserve Bank of India (RBI) isn’t expected to announce any cut in interest rates on Monday, June 17, despite falling of headline inflation to a 43-month low in May.

While some analysts are of the view that the central bank should announce a cut in key rates as Wholesale Price Index (WPI) based-inflation slipped to 4.70 per cent in May, its lowest level since October 2009; many others are of the view that retail inflation is still high and the rupee is at its record low levels.

FM urges people to resist their temptation for gold

FM urges people to resist their temptation for gold

Union Finance Minister P Chidambaram on Thursday reiterated his appeal to resist the temptation to purchase gold, adding that it would help the country rein in widening current account deficit (CAD).

Mr. Chidambaram urged people to stop buying gold for at least a year as CAD, the difference between imports and exports, is at a record high level.

Speaking on the topic, he said, ““I once again appeal to everyone to resist the temptation to buy gold. If for one year there are no gold imports, it will change the current account deficit story of the country.”

Industrial production grows just 2% in April

Industrial production grows just 2% in April

Industrial production could grow just 2 per cent in April year-on-year as sluggish demand and shortages of power weighed on output.

The growth rate of 2 per cent in April was much better than a contraction of 1.3 per cent in the same of the FY2012-13, but it was quite down from March, when the index of industrial production (IIP) growth was upwardly revised to 3.4 per cent growth.

In FY2012-13, the IIP averaged at 1 per cent due to contraction in coal production, and sluggish growth in manufacturing sector.

India’s GDP growth slips to 4.8 % in Q4

India’s GDP growth slips to 4.8 % in Q4

India’s gross domestic product (GDP) growth rate slipped to 4.8 per cent in the fourth quarter of the last financial year as production in the country’s three major sectors, viz. agriculture, manufacturing and mining, remained gloomy.

The country ended the entire FY2012-13 at the decade’s lowest growth rate of 5 per cent. In the first, second and third quarters of the last financial year, the economy grew at a rate of 5.4 per cent, 5.2 per cent and 4.7 per cent, respectively.

Rupee hits 11-month low as Subbarao expresses concern over inflation

Rupee hits 11-month low as Subbarao expresses concern over inflation

The Indian rupee slipped to its lowest level against the US dollar in nearly eleven months in opening deals on Friday.

The rupee slipped to as low as 56.60 versus the US dollar, its lowest level since June 29, 2012. The Indian currency had closed at 56.38/39 per US dollar on Thursday.

Some analysts are of the view that the rupee was a cause of concern and that it was very likely to hit a record low in the coming few weeks.

Mistry’s top job is to consolidate businesses acquired by Ratan Tata

Mistry’s top job is to consolidate businesses acquired by Ratan Tata

While Ratan Tata focused on acquisitions during the last decade of tenure at the helm of slat-to-software conglomerate, his successor Cyrus Mistry’s job is to consolidate.

In the decade before quitting, Mr. Ratan led many big acquisitions including $13 billion purchase of Anglo-Dutch steel producer Corus and $2.3 billion acquisition of luxury car maker Jaguar & Land Rover (JLR).

Finance Ministry agrees to dole out Rs 1L crore towards fuel subsidy

Finance Ministry agrees to dole out Rs 1L crore towards fuel subsidy

The Finance Ministry has agreed to pay a record Rs 100,000 crore to state-run oil marketing companies towards diesel and cooking fuel subsidy in 2012-13 to help them avoid the impact of the proposed implementation of Export Parity Price (EPP) pricing formula.

The Finance Ministry wants the pricing model to be changed to EPP, but Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) are opposing the proposed change as the new model would bring their profitability down to nearly zero.

India’s sovereign rating deserves an upgrade: FM

India’s sovereign rating deserves an upgrade: FM

India deserved an upgrade in credit ratings and sovereign outlook as the country’s macro-economic situation is much better now, Union Finance minister P Chidambaram said.

Speaking on the sidelines of an event organized by the Competition Commission of India (CCI) on Monday, there was nothing to worry about the country’s current macro-economic situation.

The Finance Minister said, “We deserve a ratings and outlook upgrade. There is nothing to worry as the macro-economic situation is much better now.”

Overseas firms look past weakness in Indian economy

Overseas firms look past weakness in Indian economy

Global firms are making huge investments in India’s consumer market, despite the overall weakness in the Asia's third-largest economy.

In the recent past, consumer goods giant Unilever announced its decision to invest $5.4 billion to increase its stake in its Indian arm Hindustan Unilever Ltd.

Available figures suggest that foreign companies collectively spent around $9.86 in mergers and acquisitions in India this year. The figure is the highest in Asia.

Retail inflation finally slips to below double digits

Retail inflation finally slips to below double digits

After staying in double digits for four months in a row, India’s retail inflation slipped to 9.39 per cent in April. In March, retail inflation was recorded at 10.4 per cent.

The core consumer price index (CPI) inflation, which excludes food and fuel, slipped from 8.7 per cent in March to 8.2 per cent in April.