A sharp slowdown in India’s manufacturing sector – a key driver of job creation – was a major factor in the monetary policy committee’s (MPC) decision to cut the key repo rate earlier this month, an external member told Reuters. “In particular, there was a concern about the weaknesses of the manufacturing sector, which is important for job creation, due to subdued urban consumption and slow growth of private investments,” Nagesh Kumar said on Friday, adding the views were his own and not those of the committee. “The challenging global economic environment with threat of major trade wars erupting also…

Mumbai: The Reserve Banks of India’s Monetary Policy Committee (MPC) may deliver interest rate cuts in a measured way and raise liquidity, but it is unlikely to shift its monetary stance from neutral to accommodative as it weighs the implications of the global trade war on financial markets. All members of the MPC said that there is a need to continue with the neutral stance to retain flexibility and to act appropriately as global financial conditions evolve. RBI executive director Rajiv Ranjan also highlighted the subtle change in the wording of the stance to “…a durable alignment of inflation with…

The next round of negotiations for reviewing the India-Asean free trade agreement in goods is expected in April, though the pace of talks is slow, an official said. A free trade agreement in goods between India and the 10-nation bloc ASEAN (Association of Southeast Asian Nations) was signed in 2009. The ASEAN trade deal came into force in January 2010. In August 2023, both sides announced a complete review of the existing agreement in goods by 2025. “The pace of talks is slow,” the official said. ASEAN as a group is India’s one of major trade partners with about 11…

Union Agriculture Minister Shivraj Singh Chouhan on Saturday said the government is working out measures to ensure that farmers do not have to sell their produces, especially fruits and vegetables, at throwaway prices. Speaking after inaugurating the ‘Pusa Krishi Vigyan Mela’ 2025 — being held in the national capital from February 22-24 — he emphasised the need to take new seeds varieties and farm technologies from labs to agriculture filed at the earliest. Chouhan said the government is holding discussions with farmers directly as well as through their organisations to understand the problems and then making schemes to address the…

India’s economic growth is expected to pick up momentum in the third quarter of the financial year 2024-25 (Q3FY25), with GDP growth estimated at 6.2 per cent, up from 5.4 per cent in the second quarter (Q2FY25), according to a report by Union Bank of India.The report highlighted that the negative gap between GDP and Gross Value Added (GVA) growth, which was observed in the first half of FY25 (H1-FY25), is likely to have neutralized in Q3FY25. It said “We estimate Q3FY25 GDP growth rate to mark an uptick to 6.2 per cent (5.4 per cent in Q2FY25), as the…

MUMBAI: Financial entities have a duty to ensure that customers fully understand the risks associated with leveraged products and speculative investing. Entities also need to shoulder part of the responsibility to educate consumers as it is not only the responsibility of regulators, Reserve Bank of India (RBl) deputy governor Rajeshwar Rao said at a conference by the Indian Institute of Management Kozhikode (IIMK) and the National Stock Exchange (NSE).Rao, who oversees crucial departments of regulation, risk monitoring and enforcement since 2020, said though technology and digital innovations drive financial inclusion, they also bring with them the risk of excessive exposure…

A significant 70% rainfall deficit, combined with temperatures unusual for this time of the year, has put a big question mark over India’s winter crop output this year, ToI’s Neha Madaan reported on February 21. Wheat farmers in the northern regions could be staring at a sharp decline in rabi production, the report said.Typically, this weather pattern only emerges after Holi, but this year it seems to have arrived 20-30 days early. An official from the India Meteorological Department (IMD) said that from January 1 to February 20, 2025, the nation has recorded only 9.8mm of rainfall, starkly lower than…

MUMBAI: The Reserve Bank of India (RBI) will use artificial intelligence (AI) and machine learning (ML) tools to predict future outcomes, spot abnormal activities, and manage risks in a fast changing financial landscape.Besides catching hints of asset bubbles and sensing early signs of market disruptions by analysing patterns from historical data, macroeconomic numbers, and market behaviour, AI and ML models may come handy in ‘stress testing’ of banks. It could help regulators to be better positioned in ensuring that banks have enough capital to absorb shocks from slowing economy and plunging markets. The regulator is revamping its standing committee of…

India’s Chief Economic Adviser V Anantha Nageswaran’s term has been extended by two years until March 2027, according to a government order seen by Reuters.

India could consider raising goods and service tax on cigarettes and other tobacco products once it stops levying a compensation cess on these items.Cigarettes and other tobacco products currently face GST of 28% besides the cess and other levies, taking the total indirect tax to 53%. One of the suggestions being explored is to raise the GST to the highest permissible 40% and top that with an additional excise duty. The idea is to ensure that the tax revenue on these products does not fall once levying of the compensation cess ends, now scheduled for March 31, 2026. The government…

US President Donald Trump has said that he made it clear to Prime Minister Narendra Modi that India will not be spared from Washington’s reciprocal tariffs, emphasising that “nobody can argue with me” on tariff structure. Trump made these remarks during an interview with Fox News’ Sean Hannity recently. Fox News aired a joint television interview with President Trump and billionaire Elon Musk on Tuesday night. On February 13, hours before Prime Minister Modi’s bilateral meeting with Trump in the White House, the US President announced reciprocal tariffs. Under the plan, the Trump administration “will work strenuously to counter non-reciprocal…

New Delhi: The Indian economy likely grew by 6.4% in the third quarter of the current fiscal, driven by government spending, rating agency ICRA said on Tuesday. Bank of Baroda has projected a growth rate of 6.6%.These projections come ahead of government data on gross domestic product (GDP) estimates for the third quarter of FY25, scheduled to be released next week. In the third quarter of the previous fiscal, the economy had expanded by 8.6%. “India’s economic performance in the third quarter benefitted from a sharp ramp-up in aggregate government spending (Centre plus state) on capital and revenue expenditure, high…

India needs to allow the export of 100% broken rice after inventories of the grain reached a record high at the start of February, nearly nine times the government’s target, exporters told Reuters. Exports of 100% broken rice could help reduce stocks in the world’s biggest exporter and enable poor African countries to secure the grain at lower prices, as well as support Asian animal feed and ethanol producers that rely on the grade. “The government has way more rice than needed, so there’s no issue with supply. Given that, they should allow exports of 100% broken rice,” said B.V.…

The ministry of statistics and programme implementation (MoSPI) is looking to utilise citizen-generated data (CGD) to monitor sustainable development goals (SDGs), it said on Monday. CGD is an important tool for addressing data gaps and promoting inclusivity, the ministry said.At a workshop organised by the ministry, Saurabh Garg, secretary, MoSPI, noted India’s engagement in participatory planning processes, social auditing and the Centralised Public Grievance Redress and Monitoring System (CPGRAMS). He also acknowledged the challenges associated with harnessing citizen contribution to data, such as subjectivity, representativeness, privacy and security, scalability and sustainability. The workshop explored the relevance of the Copenhagen framework…

India on Monday vowed to buy more industrial goods from the United States, days after Prime Minister Narendra Modi’s U.S. visit, while data showed the South Asian country’s merchandise trade deficit stood at $22.99 billion in January, in line with expectations. Economists had estimated the January trade deficit to be $22.35 billion, according to a Reuters poll. Also Read: India’s trade deficit widens to $23 billion in January Merchandise exports in January stood at $36.43 billion compared with $38.01 billion in December 2024. The imports for the month were $59.42 billion, while they were at $59.95 billion the month prior.…

NEW DELHI: Indian manufacturers are witnessing a rise in quality awareness, with the automotive and chemicals sectors leading the adoption of global certifications and quality protocols, according to a study by the Confederation of Indian Industry (CII).Other sectors, including capital goods and fast-moving consumer goods (FMCG), are also aligning with international benchmarks to boost exports and revenue growth, said the CII Manufacturing Competitiveness Study titled ‘Raising the Standard: Quality Transformation of Indian Manufacturing’. “Quality represents much more than product reliability or customer satisfaction; it is a strategic differentiator that has the power to shape India’s competitive positioning worldwide,” said Chandrajit…

The announcement to negotiate a bilateral trade agreement between India and the US has boosted business confidence in both countries, as it can help further strengthen economic ties by leveraging their competitive strengths, Commerce and Industry Minister Piyush Goyal said on Sunday. During the recent visit of Prime Minister Narendra Modi to Washington, India and the US announced to more than double the two-way commerce to USD 500 billion by 2030 and negotiate the first tranche of a mutually beneficial, multi-sector bilateral trade agreement (BTA) by fall of 2025. “The Prime Minister has brought back with him an agreement or…

BJP MP Baijayant Panda will lead the 31-member Select Committee tasked with reviewing the Income-Tax Bill introduced by Finance Minister Nirmala Sitharaman. The bill seeks to replace the existing Income Tax Act of 1961, aiming to simplify tax laws and provide greater clarity on tax-related matters. It was introduced by Sitharaman on Thursday and referred to the Lok Sabha select committee for further examination. The committee comprises 31 MPs: 14 from the ruling BJP, six from Congress, two from Samajwadi Party, and one each from TMC, DMK, TDP, JD(U), Shiv Sena (UBT), NCP (SP), Shiv Sena, RSP, and Zoram People’s…

India’s inflation is expected to average around 4.8 per cent in 2025. According to a report by Centrum Institutional Research, the recent decline in consumer price inflation (CPI) for January could provide the Reserve Bank of India (RBI) with enough room for another 25 basis points (bps) rate cut in the near future. “We expect inflation to average 4.8 per cent in FY25. This sharp slowdown in inflation will provide RBI enough room for another 25bps rate cut,” the report said. According to the report, last month’s drop in inflation was primarily due to a fall in food prices, especially…

New Delhi: India and the United States are looking to negotiate the first tranche of a Bilateral Trade Agreement (BTA) by the fall this year. The deal will focus on increased market access and reduction of tariff and non-tariff barriers for goods and services to more than double bilateral trade to $500 billion a year by 2030 as part of ‘Mission 500’.The proposed deal, which would also focus on deepening supply chain integration, is among the key commitments Prime Minister Narendra Modi and President Donald Trump highlighted in a joint statement after their summit in Washington. The two leaders also…

The much awaited new income-tax bill has been tabled before the Lok Sabha and is likely to be implemented from 1 April 2026 once it receives necessary approvals. As highlighted by the Finance Minister in her budget speech earlier this month on 1st February, the new income-tax bill is expected to be clear and direct and easy to understand for both the taxpayers and the tax authorities. This aims to reduce litigation and enhance tax certainty by trusting the taxpayers.While the new income-tax bill is not expected to bring in any major changes in terms of provisions of law, monetary…

U.S. President Donald Trump on Thursday warned of 100% tariffs on BRICS nations if they “play games with the dollar,” referring to discussions around non-dollar trade mechanisms. While Trump targeted Brazil, Russia, India, and China, sources clarified that BRICS has no proposal for a single currency, focusing instead on bilateral trade in national currencies.

Amid tariff crackdown by US President Donald Trump targeting several countries, Prime Minister Narendra Modi arrived in Washington DC on Thursday for his two-day visit to the US where he will hold bilateral talks with Trump. The fact that India has so far escaped Trump tariffs and PM Modi is meeting Trump within a month of his presidency underlines significance of India-US ties as well as Modi-Trump relationship. Yet, Trump is expected to drive a hard bargain with PM Modi while Modi is said to be prepared to negotiate a trade deal which will shield India from Trump tariffs. Also…

India’s electronics industry is pushing the government to further enhance trade ties with the US and boost bilateral trade to $750 billion by 2032 including $100 billion worth of electronics by leveraging existing policies and incentive frameworks. Ahead of Prime Minister Narendra Modi’s meeting with US President Donald Trump this week, the electronics industry said policy measures such as Press Note 3 and Production Linked Incentive (PLI) schemes have created strong opportunities for US firms to participate in the Indian market in a non-Chinese supply chain environment. Separately, it sought reciprocity from the US through favourable trade concessions, deeper technology…

India’s palm oil imports in January fell to their lowest in nearly 14 years as refiners turned to cheaper soyoil, driven by negative refining margins for palm oil, a leading trade body said on Wednesday. Lower palm oil imports by India, the world’s biggest buyer of vegetable oils, are likely to weigh on benchmark Malaysian palm oil prices and support U.S. soyoil futures. Palm oil imports in January fell 45% from December to 275,241 metric tons, the lowest since March 2011, the Solvent Extractors’ Association of India (SEA) said. India imported an average of more than 750,000 tons of palm…

New Delhi: Ahead of Prime Minister Narendra Modi’s US visit, India slashed customs duties on a range of products as Washington ratchets up threats of reciprocal tariffs. In the first round, the new Trump administration imposed tariffs on China, Mexico and Canada. Trump also said he will levy a 25% tariff on metal imports. Threat of action against India looms large as Trump has frequently called India a ‘Tariff King’. In a proactive move that could help reduce the risk, India’s February 1 budget reduced duties on fish hydrolysate for the manufacture of aquatic feed, specific waste and scrap items,…

Risks are higher for emerging Asian economies such as India and Thailand from Trump’s retaliatory tariffs but they are exploring options to strike a deal with the US, financial services firm Nomura said Tuesday. After imposing 10% tariffs on China and threatening to implement 25% tariffs on imports of steel and aluminium from all countries, US President Donald Trump has said that he will announce reciprocal tariffs on US imports from other countries this week. Nomura said that the imposition of reciprocal tariffs by the US could end up hurting emerging Asia including India, China and Thailand more than developed…

New Delhi, The agriculture ministry has revised guidelines for Market Intervention Scheme (MIS), increasing the procurement limit of crops to 25 per cent from 20 per cent. The guidelines has been revised to encourage states to implement the MIS. According to an official statement on Monday, MIS is a component of PM-AASHA scheme. The MIS is implemented on the request of state/UT government for procurement of various perishable agricultural/horticultural commodities such as tomato, onion and potato, etc, for which minimum support price (MSP) is not applicable and there is a reduction of at least 10 per cent in market prices…

For the first time in five years, since the extraordinary Covid-induced rate cuts, the Reserve Bank of India (RBI) rate-setting monetary policy committee (MPC) last week voted for a 25 basis points cut in the benchmark repo rate to 6.25%. A slump in GDP growth rate, softening inflation and low urban consumption moved the RBI to cut repo rate.The rate cut, neatly dovetailing into the largest tax cuts in history announced less than a week before in the Union budget, is expected to help lower financing costs for homes, cars, or other discretionary purchases for common people. However, after the…

MUMBAI: Friday’s rate cut by the Reserve Bank of India is expected to take several months to fully reflect on lending and deposit rates, because of a liquidity deficit faced by banks, stiff competition for deposits and the resultant high cost of funds.While the rate cut is intended to ease financial conditions, experts suggest the broader effect on the banking system – particularly on loans linked to the marginal cost of funds-based lending rate (MCLR) and deposits – will not be immediate, although repo-linked borrowers have immediately benefited. “The transmission of Friday’s cut to bank lending rates for new loans…

New Delhi: India’s total trade is expected to grow at a compound annual growth rate (CAGR) of 6.4 per cent through 2033, reaching USD 1.8 trillion annually, according to a BCG report. A major factor fueling this surge is India’s growing appeal as a production hub for companies looking to diversify supply chains beyond China. The government’s substantial incentives for manufacturing, a vast low-cost workforce, and rapidly improving infrastructure are further strengthening India’s position. As a result, the country is becoming a preferred destination for foreign investment and trade collaborations. India’s trade growth will be geographically diverse. Trade with the…

Reserve Bank Governor Sanjay Malhotra on Saturday said that the market forces decide the value of rupee with respect to the US dollar and the central bank is not worried about day-to-day movement of the currency value. Addressing the media after the meeting of Finance Minister Nirmala Sitharaman with the Reserve Bank board, Malhotra said that the central bank focuses on the value of the rupee in the medium to long term. “There is no change in RBI’s approach. It does not look at any price level or band. It is our endeavour to curb excessive volatility. We should not…

Reserve Bank of India Governor Sanjay Malhotra expects uncertainty linked to US President Donald Trump to ease in the coming months. He assured that the RBI would remain agile in addressing the banking system’s liquidity needs, providing both short-term and durable solutions.

Reserve Bank of India (RBI) governor Sanjay Malhotra Friday reduced policy rates for the first time in about five years, helping lower financing costs for homes, cars, or other discretionary purchases for middle-class shoppers, who were gifted the largest tax cuts in history less than a week ago in what is now being labelled as the ‘dream budget’ for consumption.Malhotra said the ‘1 lakh crore of anticipated tax savings will, instead of feeding inflation, will likely boost productivity, with capacity utilisation across industries nearing thresholds that would eventually justify capital expenses. “There is sufficient productive capacity that we have today,”…

Commerce and Industry Minister Piyush Goyal on Friday ruled out additional regulations for the lab-grown diamond industry, stating the sector has flourished under the existing self-regulatory framework. Speaking during Question Hour in the Rajya Sabha, the minister said the Kimberley Process Certificate for natural diamonds is widely accepted in international markets. “Wherever we have given free hand, the industry has prospered. Bringing more regulation for this is not in the interest of the industry,” Goyal said. He pointed out that the Kimberley Process provides international certification for natural diamond traceability, while separate certification systems exist for lab-grown and natural diamonds.…

In a seldom-used provision of the law, the British tax office has asked the Indian government and the Income tax (I-T) department to recover tax of an Indian who had left the UK years ago and is now settled in India.The treaty between the two countries allows revenue authorities in the UK to approach the taxman here to claim unpaid tax. Typically, this is done once the dispute has reached a closure and the taxpayer in question is left with no legal option. While other central agencies enforcing anti money-laundering regulations and criminal code often reach out to their foreign…

An almost entirely new Monetary Policy Committee (MPC) being chaired by the newly-appointed RBI Governor Sanjay Malhotra is likely to deliver a 25 basis points repo rate cut on February 7, almost after five long years.Economists surveyed by Reuters and Bloomberg predict a 25 basis points cut in repo rate to 6.25% from 6.5% as the new RBI governor is sceduled to announce the monetary policy statement on February 7. The new governor is expected to ease the interest rate burden in the wake of slowing economic growth and clamour for more measures to boost faltering consumption. Expectations of rate…

Overseas investors selling Indian equities isn’t a doomsday scenario, finance minister Nirmala Sitharaman said-they invest, make a profit and invest again. This only shows that the fundamentals of the economy are strong, she said in a post-budget interview with ET. Edited excerpts:The government has done its bit on fiscal consolidation in the budget. Do you expect the Reserve Bank of India to respond with a rate cut to boost growth?The Reserve Bank will take its own call. I can’t tell. But certainly, they have started realising that more liquidity should be made available and they have taken steps in the…

The cash crunch plaguing India’s banking system has more than halved after the central bank took aggressive liquidity injection measures amid faltering economic growth. Deficit liquidity, or the amount that lenders borrow from the Reserve Bank of India, stood at 660.4 billion rupees ($7.6 billion) as on Feb. 4, down from 2.2 trillion rupees on Jan. 30, according to a Bloomberg Economics index. The cash injection has also led to a decline in the weighted average call rate, which represents banks’ overnight borrowing costs. The rate has dropped from a high of 6.88% last month to align with the benchmark…

New Delhi: The government is mulling ways to give private sector companies access to data on its project planning portal PM Gati Shakti, industry secretary Amardeep Singh Bhatia said Tuesday. The Department for Promotion of Industry and Internal Trade (DPIIT) is exploring options such as giving access to companies through API or directly working on the platform. Bhatia said it will soon come out with detailed guidelines regarding sharing of certain data and maps. “Let us wait for the detailed guidelines to come out soon, quickly. I am hopeful as this is a budget announcement,” he said. PM Gati Shakti…

India’s palm oil imports in January plunged to their lowest level in nearly 14 years as refiners replaced the tropical oil with cheaper rival soyoil because of negative refining margins for palm oil, five dealers said. Lower palm oil imports by India, the world’s biggest buyer of vegetable oils, could weigh on benchmark Malaysian palm oil prices, but support U.S. soyoil futures. Palm oil imports plunged 46% in January from the previous month to 272,000 metric tons, the lowest since March 2011, according to estimates from dealers. India imported an average of more than 750,000 tons of palm oil every…

India’s pace of debt reduction is gradual, leaving its sovereign rating vulnerable to potential downside risks in the event of a major economic shock, Fitch Ratings said on Monday.The rating agency, however, expressed confidence in the government’s ability to stick to its medium-term policy framework which aims to reduce debt and bring it on a downward trajectory over time. “Increased confidence that the government can adhere to this medium-term fiscal framework and keep debt firmly on a downward path, would be positive for the sovereign rating over time,” said Jeremy Zook, director and primary sovereign analyst for India at Fitch…

Amid rupee falling to a record low level of 87.29 to a dollar, Finance Secretary Tuhin Kanta Pandey on Monday said there is no concern over rupee value and the Reserve Bank of India is managing the volatility of the local currency. “There is no concern about the value of the rupee. The volatility in rupee is being managed by the RBI,” Pandey told reporters. He said the Indian rupee is “free-float” and no control or fixed rate is applicable on the currency. He said the exchange rate is facing pressure amid unabated foreign fund outflows. The rupee depreciated 67…

The budget is a bold and balanced roadmap for India’s economic future, crafted to navigate global uncertainties while laying the groundwork for sustainable growth and global competitiveness. It is about empowering people, boosting businesses, and building a resilient economy that can thrive in the long run.One of the most talked-about changes is the recalibration of personal income tax. This move is expected to boost disposable incomes, spur consumer spending, and reignite economic activity at a time when privaste investment has been sluggish. The financial sector, especially banks, is set to play a key role in turning these policies into real-world…

Finance Minister Nirmala Sitharaman on Saturday announced a significant tax relief package, providing a much-needed reprieve for India’s middle class grappling with a slowing economy and rising prices. The Budget measures are expected to benefit taxpayers across various income brackets, marking the largest-ever tax concession worth Rs 1 lakh crore in absolute terms.Key tax reforms The new tax regime now offers a rebate for annual incomes up to Rs 12 lakh, up from the previous Rs 7 lakh limit. For salaried individuals, the standard deduction has been increased to Rs 75,000 under the new regime, effectively ensuring zero tax liability…

Public-private partnerships (PPPs) are back in vogue as the budget seeks to encourage India Inc to start spending on infrastructure projects. The push is backed by a 10% hike in capital expenditure to `11.21 lakh crore for FY26. The establishment of a mechanism for speedier implementation of PPP projects is also an indication along these lines as the Centre rationalises spends to ensure fiscal prudence. To be sure, the FY26 capex goal is 0.9% higher than the budgetary estimate (BE) of 11.11 lakh crore earmarked for FY25. Since key infrastructure ministries were unable to meet these targets, the allocation was…

The Budget 2025 lays the groundwork for a significant transformation of India’s industrial and logistics landscape, offering extensive benefits for manufacturing, warehousing, and supply chains. The government’s ambitious initiatives, as outlined in Budget F26, are set to revolutionize industrial and logistics growth in India, with a particular focus on benefitting the toy manufacturing sector.The integration of PM Gati Shakti’s digital infrastructure and data mapping will drive investments, private sector participation, and efficiency improvements. With a strong policy framework, enhanced infrastructure, and rising demand, India is well-positioned to emerge as a global leader in manufacturing and logistics, reinforcing its ambition to…

Mumbai: The latest Economic Survey has reiterated inflation will progressively align to the 4% target, outlining supply-side debottlenecking to manage food inflation. “Estimates suggest that India’s retail price inflation will align progressively with the target. Global commodity prices are expected to decline, potentially easing core and food inflation,” the Economic Survey said. Long-term price stability could be achieved by robust data systems for monitoring prices, developing climate-resilient crops, reducing crop damage and post-harvest losses, it said. The Reserve Bank of India (RBI) and the International Monetary Fund (IMF) have projected that India’s consumer price inflation will progressively align towards the…

Workplace mental health issues have been a hot topic lately, and the Economic Survey 2023-24 has given them special attention. The report, released on Friday, a day before the Union Budget 2025, highlights how mental well-being is not just a personal issue but an economic one too. It discusses how factors like work culture, long working hours, and lifestyle choices impact mental health and, in turn, worker productivity and the economy. Mental well-being: More than just a personal issue The survey recognises that mental health is influenced by several factors, including “workplace culture, hours spent working, and lifestyle.” It even…

New Delhi: The government has begun work to amend the 72-year-old Coir Industry Act that will facilitate the creation of value-added products such as jute blended or rubber blended coir and reduce bureaucracy in its functioning as it aims to drive up coir and coir product exports by about 50% to ₹5,000 crore by 2027.The exports were to the tune of ₹3,396 crore in FY24, ₹3,992 crore in FY23 and ₹4,340 crore in FY22. The proposed amendments will align the extant law with today’s market reality and help businesses expand their product ranges and modernise units through the adoption of…

India Budget: In the Union Budget 2024, Finance Minister Nirmala Sitharaman categorised India’s key beneficiaries into four broad groups — youth, farmers, women and the poor. These “castes” (as she described them in her speech), Sitharaman said, would shape the government’s policy direction, driving welfare and development initiatives.As Budget 2025 approaches, the question remains: Who will emerge as the government’s focus this time — the four “castes” from last year or some new group/s? Investors: Keeping the growth engine running in Budget 2025 India has experienced a sharp rise in foreign direct investment (FDI) inflows and a surge in domestic…

New Delhi: India on Wednesday removed import restrictions on certain kinds of patrol boats and vehicles with immediate effect. In a notification, the Directorate General of Foreign Trade (DGFT) said the import policy of patrol or surveillance boats, air-cushion vehicles, and remote-operated vehicles is revised to “free” from “restricted”. India imported $0.46 million worth of these goods in April-November this fiscal mainly from France, Germany, Hong Kong and the UK.

Budget News: The upcoming Union Budget for FY26 is expected to focus on rural development, youth and women empowerment, fine-tuning the Employment Linked Incentive Scheme, and enhancing the skilling program according to a report by Yes Bank. Additionally, capital expenditure may shift focus to new sectors beyond railways and roadways, which are nearing capacity saturation.The report also adds that the budget will maintain fiscal discipline while prioritizing growth-oriented reforms to lay the foundation for a “Viksit Bharat.” The government is set to target a Gross Fiscal Deficit (GFD) to GDP ratio of 4.5 per cent in FY26BE, down from an…

Mumbai: A diverse group of companies including Adani Ports and Special Economic Zone, JSW Infrastructure, Horizon Industrial Parks and Transindia Real Estate Ltd have shown interest in acquiring listed supply chain and logistics infrastructure firm Arshiya Ltd, which is undergoing a corporate insolvency resolution process.Investors such as Authum Investment & Infrastructure Ltd, Dickey Alternative Investment Trust and Finquest Financial Solutions Pvt Ltd have also evinced interest in the company, said a person aware of the development. The company has admitted liabilities of over ₹6,647 crore, which includes about ₹3,082 crore from secured financial creditors and ₹3,544 crore from unsecured financial…

Budget 2025: India’s goal of becoming a developed nation by 2047 hinges on fostering a healthy working population. However, the country currently loses over 1% of its GDP to cigarette consumption, prompting the government to impose a “sin tax” on products detrimental to public health. Revenue from this tax is often directed toward welfare initiatives and used to discourage consumption by increasing product costs.While the GST Council holds the primary authority over taxation of tobacco products, the central government can also adjust the National Calamity Contingent Duty (NCCD) during the Union Budget. In 2023, the NCCD rates on tobacco products…

New Delhi: Bihar is looking for an increase in financial support from the Centre in the upcoming Union budget, state minister and senior JDU leader Vijay Kumar Choudhary told ET. The state had received special attention in the budget for 2024-25 along with Andhra Pradesh, which too has an NDA government headed by a party other than the BJP. “The Union government under the leadership of PM Modi has been generous in providing assistance to Bihar since the government formation last year. Bihar got funds for several projects in the last budget,” Choudhary told ET. “However, this time we need…

India has initiated a probe into the alleged dumping of PVC paste resin, used to make artificial leather and other technical textiles’ products, from the European Union (EU) and Japan, according to a notification. T he commerce ministry’s investigation arm, Directorate General of Trade Remedies (DGTR), is probing the dumping as imports are allegedly hurting the margins of the domestic industry. Chemplast Sanmar Ltd has filed an application seeking the imposition of anti-dumping duty, stating that the cheap imports are causing material injury to the domestic industry. “On the basis of the duly substantiated written application submitted by the domestic…

Agriculture Minister Shivraj Singh Chouhan announced that the government is planning a model to enable farmers to sell their produce directly to consumers, minimizing the role of middlemen. This ‘farm to consumer’ model aims to maximize farmers’ benefits and contribute significantly to India’s development.

Mumbai: Demand for premium products — from groceries and spirits to clothing and shoes — has bucked the slowdown trend, especially in the cities, amid a cutback in mass-priced segments due to inflation.The likes of Hindustan Unilever (HUL), Diageo India, Shoppers Stop, Reliance Retail and Metro Brands said consumers may be truncating shopping lists of lower- or mid-priced products but the premiumisation trend continued even in discretionary categories. “The secular trend of premiumisation remains resilient, with the premium segment growing ahead of our segment this quarter,” said Rohit Jawa, managing director at HUL. “This indicates that consumer needs and aspirations…

New Delhi: The government has notified the Unified Pension Scheme (UPS). In a gazette notification issued on January 24, it stated that the central government has decided to introduce Unified Pension Scheme, as an option under the National Pension System for the employees of the central government who covered under the NPS. The effective date for operationalisation of the Unified Pension Scheme shall be April 1, 2025, the gazette notification stated. “The Unified Pension Scheme shall be applicable to such central government employees who are covered under National Pension System and who choose this option under National Pension System,” the…

At a time when unemployment has become more and more of a concern and job creation a top priority for the government, expenditure on education and skill development has emerged as a big imperative for the development of the nation. Skilling India’s youth was one of the themes of the 2024 budget presented by Finance Minister Nirmala Sitharaman.The Skill India mission has been a priority of the government to enhance employability and skill development in the country. Some of the schemes under the mission include Pradhan Mantri Kaushal Vikas Yojana (PMKVY), offering short-term skill training, and Pradhan Mantri Kaushal Kendras…

India is set for exponential growth in various sectors, but regulatory reforms and significant investments are essential to sustain this momentum and meet future needs, said industry leaders during a discussion on Viksit Bharat: The Road to 2047 at the World Economic Forum on Friday.Rajiv Memani, chairperson of consulting firm EY India, highlighted the need for simplifying regulations and improving ease of doing business in India, noting the variance in business environments among different states. “Rules probably may not vary that much, but how they are implemented, executed and interpreted, I think that varies significantly among the states,” he said.…

Government’s subsidy burden is expected to rise to about Rs Rs 4.1-4.2 lakh crore in the financial year 2024-25 (FY25) more than the budget estimates of Rs 3.8 lakh crore, according to a report by the Bank of Baroda.The report said that the increase is driven primarily due to higher expenses on food and fertilizer subsidies, which are expected to exceed the budgeted allocation. It said, “overall subsidy burden is expected to rise to approx. Rs 4.1-4.2 lakh crore in FY25. From that level, the burden is expected to come down to approx. Rs 4 lakh crore in the next…

India Budget: The government is on course to meet its fiscal deficit goal of less than 4.5% of GDP in FY26, having overcome the Covid-19 pandemic blow. With debt proposed as the new fiscal policy anchor from FY27, it is expected the govt could announce more details of a new consolidation framework. A look at the fiscal situation ahead of the budget:

The Union Budget FY26 is expected to reflect the Centre’s commitment to fiscal consolidation, with the fiscal deficit projected at 4.5 per cent of GDP, according to CareEdge Ratings.Sachin Gupta, Chief Rating Officer, CareEdge Ratings, stated, “The budget is likely to focus on supporting consumption, boost manufacturing competitiveness to support job creation and tap the demographic potential, emphasis on agriculture via higher allocation for agri r&d, farmers’ welfare and policy reforms, continued capex emphasis to close india’s infrastructure gap in areas like power, and transportation, and fiscal discipline with focus on reducing the debt-to-gdp ratio.” Gross tax revenue is projected…

New Delhi: The Central Board of Direct Taxes (CBDT) has said that the Principal Purpose Test (PPT), which allows for deeper scrutiny of treaty benefits claimed by investors, will apply prospectively. A guidance note issued by the country’s apex direct taxes body clarified that past investments made under tax treaties with countries including Mauritius, Cyprus and Singapore will not be subject to PPT, bringing relief to investors. The PPT, a globally accepted rule, aims to prevent large companies from avoiding taxes by scrutinising business arrangements that have been made purely for tax benefits as their main purpose. India is among…

India Budget: Indian economy has showed remarkable resilience in post pandemic period. Despite several external headwinds, it achieved an average annual growth rate of 8.3% in the last three years supported by a positive base effect owing to the contraction registered in the FY20-21. This was made possible the significant pump priming through high capital expenditure (capex) spending by the Government. However, with the tapering off of the favourable base effect combined with challenges emanating from weak consumption growth, household indebtedness, high food inflation, slow growth in capital formation and stress among MSMEs, India faces significant challenges in continuing with…

The February 1 budget might introduce revisions to the customs framework as India aims to strengthen domestic manufacturing and align with policy measures from the new U.S. administration.

India Budget: “If they tax us, we tax them,” Donald Trump sent shockwaves across the globe when he announced his plans to start a potential trade war with any country that goes down the path of de-dollarisation. For India, the lessons lie in Trump’s first term. The newly inaugurated US President, who is known for his ‘peace through strength’ policy when it comes to foreign affairs, has sent a stark warning for Washington’s good partner, New Delhi, too. While threats of Trump tariffs loom, the Budget may have a role to play to counter any challenges. India has often been…

India is now the seventh-largest coffee producer globally with exports reaching $1.29 billion in FY24, almost double the $719.42 million in 2020-21, the commerce and industry ministry said Monday. In the first half of January 2025, India exported over 9,300 tonnes of coffee with top buyers including Italy, Belgium, and Russia. Approximately three-fourths of India’s coffee production consists of Arabica and Robusta beans. These are primarily exported as unroasted beans. “However, there is a growing demand for value-added products like roasted and instant coffee, further fueling the export boom,” the ministry said. Domestic consumption has increased to 91,000 tonnes in…

Ratings Agency Moody’s on Monday lowered India’s economic growth forecast to 7% for the fiscal year ending March 2025, down from 8.2% recorded in the previous fiscal year. This revision comes amidst a broader slowdown in global and domestic economic trends. In its latest report, Moody’s stated, “We expect India’s economy to grow by 7% in FY 2024 (year to March 2025), down slightly from 8.2% the previous year. However, the robust economy will continue to drive premium growth.” India’s GDP per capita at purchasing power parity increased by 11% year-on-year to $10,233 in FY 2023, as per the report.…

India’s mobile phone exports surpassed a record $20.4 billion in calendar 2024 buoyed by robust overseas shipments by Apple and Samsung.Exports by the world’s second-largest smartphone producer surged 44% last year from $14.2 billion in 2023, showed industry data shared exclusively with ET. Record overseas shipments of mobile phones mark an exception in India’s overall exports performance across sectors which remained flat last year. “This incredible achievement (of surpassing $20 billion in mobile exports for the first time) has come within three years of the launch of the production linked incentive (PLI) scheme in 2021,” said an official. Apple led…

The forthcoming Budget needs to focus on domestic drivers like reducing personal income tax and allocating higher capex, to boost growth amid global economic uncertainties, EY’s chief policy advisor D K Srivastava has said. Srivastava, a member of the Advisory Council of the 16th Finance Commission, said since urban consumption is lagging, it is necessary to rationalize the personal income taxes structure, both in terms of rates and deductions such that additional disposable incomes could be put into the hands of lower and middle income class groups. “At this time when global economic conditions are not very suitable for the…

New Delhi: The Financial Intelligence Unit (FIU-IND) and the National Housing Bank (NHB) Saturday signed a memorandum of understanding (MoU) to enhance coordination and information exchange to prevent money laundering. Under the MoU, FIU-IND and NHB will collaborate on a range of critical areas, including intelligence sharing, capacity building and risk assessment. The partnership aims to strengthen the effective implementation of the Prevention of Money Laundering Act (PMLA) and rules, thereby safeguarding India’s financial sector from the threats of money laundering and terrorist financing. The partnership will also facilitate the development of red flag indicators for suspicious transactions in the…

Kolkata: The second half of the current fiscal year would result in faster economic growth than a relatively circumspect first half, boosted by a visible demand rebound, Reserve Bank of India (RBI) economists said on Friday in their latest assessment of the economy.Rural demand continues to gain momentum, reflecting a resilience in consumption, supported by brighter farm prospects. A revival in public capex on infrastructure is also likely to stimulate growth in key sectors, they said. “The time is apposite to rekindle the animal spirits, create mass consumer demand and trigger a boom in investment,” the report said, barely a…

The government will likely slash its disinvestment and asset monetisation target for the current fiscal to less than ₹30,000 crore in the revised estimate from the budgeted ₹50,000 crore, people aware of the deliberations said.For the next fiscal, the target may be set at about ₹45,000-50,000 crore, as the government intends to conclude the IDBI Bank transaction and step up its asset monetisation bid, one of them told ET. It will also continue to dilute its stakes in some entities via the offer-for-sale route, he added. The government has stopped declaring a separate disinvestment target from the current fiscal. Instead,…

India’s urban population is fast growing and its cities are expanding rapidly. According to the UN Department of Economic and Social Affairs, over 500 million Indians live in urban areas. The economic survey of India 2023-24 further predicted that more than 40 per cent of the population will reside in urban areas by 2030.The government needs to be prepared to cater to the growing needs of cities. Majority of economic activities are projected to happen in urban regions, with 70 per cent the GDP coming from these areas, according to Auguste Tano Kouame, World Bank’s Country Director for India. “Globally,…

India must strengthen partnerships with Japan and South Korea to source high-quality components for electronics, solar panels, and EVs to help cut reliance on China amid Beijing’s restrictions on export of key inputs and machinery, think tank Global Trade Research Initiative (GTRI) said Thursday. Cautioning that China’s export restrictions are part of a broader trade war strategy and its response to India’s curbs on Chinese investments and visas, it said that Indian firms in electronics, solar, and EV sectors are facing delays and disruptions. “This also signals deeper geopolitical tensions and trade war. We hope India-specific restrictions go away soon…

Ahead of India’s annual budget next month, an India-centric US business advocacy group in a series of recommendations has underscored the importance of bold reforms to attract fresh investments, strengthen key industries, and elevate the country’s position as a premier global growth driver. The US-India Tax Forum, a dedicated tax policy Forum of the US-India Strategic Partnership Forum (USISPF), in its comprehensive set of recommendations on Wednesday, offered a blueprint for the reforms that can enhance transparency, reduce complexities, and help unlock the country’s full economic potential. “The Union Budget 2025-26 comes at a critical juncture for India’s economic trajectory.…

New Delhi: The first e-commerce export hub in the country is expected to be operationalised from March this year, a senior government official said on Wednesday. The pilot launch of these hubs has been approved for five firms — logistics aggregator Shiprocket and air cargo handling company Cargo Service Centre in Delhi; DHL and Lexship in Bengaluru; and goGlocal in Mumbai, Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi said. He said the departments of commerce and revenue, along with the Bureau of Civil Aviation Security (BCAS), are working on formulating a standard operating procedure (SOP) to operationalise these…

India stands out as a promising market with vast untapped potential, as the country remains below the global average in product penetration across several key sectors, highlights a report by ICICI Mutual Fund.The report data highlighted that the under-penetration, coupled with the rising desire for premium products, is set to drive domestic demand dynamics in the coming years. It said “Younger population mix, rising income levels, changing consumption patterns, hiring trends etc are likely to uphold the demand momentum” The comparative data in the report revealed significant growth opportunities in multiple segments. For instance, car penetration in India stands at…

Commerce and Industry Minister Piyush Goyal on Tuesday said India is finalising free trade agreements (FTAs) only after extensive consultations with all the concerned stakeholders. He said that unlike in the past, these pacts are now fair, equitable and balanced. “We are not doing FTAs like in the past. Every agreement is after extensive stakeholder consultation,” he said at the Thuglak Annual Meet in Chennai. Citing the agreement with the four-European nation bloc EFTA, he said that for the first time in the history of FTAs, India has received a commitment of USD 100 billion FDI (foreign direct investment) in…

Budget expectations 2025: An eventful 2024 has ended. But it’s likely that as part of the aftereffects, fireworks may continue on February 1. The BJP’s reliance on allies like Chandrababu Naidu’s Telugu Desam Party (TDP) has grown since the 2024 General Elections, where the party failed to secure a majority on its own. With the TDP playing a crucial role in forming the government, questions have arisen surrounding whether Naidu’s demands for over Rs 1 lakh crore in Budget 2024 can influence this year’s allocations. Adding fuel to the fire, Prime Minister Narendra Modi’s recent visit to Andhra Pradesh highlighted…

The Commerce Ministry’s arm DGFT on Monday updated the export policy for all products, specifying detailed conditions for each item to enhance the ease of doing business in the country. Earlier specific policy conditions were only outlined for goods which were subject to certain restrictions or fell under some norms. “Schedule-II (Export Policy)’ in sync with Finance Act 2024 dated August 16, 2024, has been notified,” the directorate general of foreign trade (DGFT) said in a notification.The updated schedule contains the current export policy of all ITC (HS) codes, along with specific policy conditions (if any) to be fulfilled, it…

Inflation in the country is likely to stabilize at an average of 4.3-4.7 per cent in the financial year 2025-26 (FY26), according to a report by PL Capital. The report highlighted that the inflationary pressures are expected to ease as food prices moderate and agricultural output stabilizes. “Inflation is likely to average around 4.3-4.7 per cent in FY26, monetary policy easing likely: Food inflation seems to have peaked out and the overall trend is likely to moderate in 2025,” it said. The report noted that food inflation, which has been a significant contributor to rising prices in 2024, seems to…

In a bid to reduce litigation, Finance Minister Nirmala Sitharaman in the upcoming Budget may announce an Amnesty Scheme for customs to foster ease of doing business. “The main asks of the industry would certainly be aligned with the objectives of the government and one objective of the government has been litigation reduction. On that front, having an amnesty scheme for customs especially covering pre-GST legacy taxes like additional duty, special additional duty has been one of the asks of the industry,” Price Waterhouse & Co LLP managing director Anurag Sehgal said. The government had in the past announced amnesty…

Commerce and Industry Minister Piyush Goyal has assured garlic traders to look into their concerns over illegal imports of the agri commodity, an official said on Saturday. A delegation of garlic traders met the minister on January 10 and highlighted difficulties faced by farmers and traders due to imports of Chinese garlic, the commerce ministry official said. According to the traders, Chinese garlic is banned in India, but it is being brought into the country, which is hurting farmers and traders, apart from distorting the garlic market. The traders have alleged that some imports were routed via Afghanistan, Iran and…

Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri on Saturday said India’s energy security will fuel the country’s bid to become a USD 4 trillion economy much earlier than the projected 2027. Puri was addressing a session at the 7th Mangaluru Literary Festival on Saturday. He said the International Monetary Fund has projected India to reach there by 2027. “But if the present trajectory continues, India will arrive there much before that,” Puri said. The seventh edition of the festival was inaugurated by legendary Kannada writer S L Bhyrappa at the T M A Pai Auditorium. Following the…

The Indian economy is expected to be “a little weaker” in 2025 despite steady global growth, IMF Managing Director Kristalina Georgieva has said. Georgieva also said she expects quite a lot of uncertainty in the world this year mainly around the trade policy of the US. In her annual media roundtable with a group of reporters on Friday, she said global growth is expected to be steady in 2025, but with regional divergence. Georgieva said she expects the Indian economy to be a little weaker in 2025. However, she did not explain it any further. The World Economy Outlook update…

India’s forex reserves contracted by $5.7 billion during the week ended January 3 as foreign investors continued to pull out dollars from the Indian markets. Also, the dollar strength is leading to revaluation of non-dollar assets in the reserves. India’s foreign exchange reserves are at $634.6 billion as of January 03. While foreign currency assets, the major component of India’s reserves dipped by $ 6.4 billion billion to 545.5billion, the value of gold in reserves was up by $824 million during the week to $67.1 billion. Gold is emerging as an important source of foreign exchange reserves in the recent…

Union Budget: Prime Minister Narendra Modi-led government, who will present their first full fledged Budget of third term, will require a big booster to boost India’s economic growth to 7 per cent in FY26, from an expected 6.3 per cent in FY25, according a report by SBI Mutual Fund. As per the report, the need for measures to enhance revenue expenditure and bring positive changes to income tax policies are needed. According to the analysis, India currently faces a demand-side challenge, even though the supply side is robust. Banks are prepared to extend credit, and corporations are ready to leverage…

New Delhi: The government has setup a committee to create a mechanism for publishing consistent export-import data even as multiple official portals continue to capture trade data, the commerce and industry ministry said Thursday, a day after its data collection arm steeply revised downwards the gold and silver imports for April-November FY25. Transmission of data from the special economic zone (SEZ) portal to the Indian Customs Electronic Gateway (Icegate) may have led to calculation errors.“A committee has been formed with stakeholders from DGCIS, DG Systems (CBIC) and SEZs for creation of a robust mechanism for publishing consistent data,” it said…

The government revised gold and silver imports for April-November FY25, with the steepest downward revision of $5 billion in the former. Data for November gold imports was revised to $9.84 billion, from the $14.86 billion announced last month, narrowing the trade deficit for the month to $32.8 billion, from the record $37.8 billion estimated earlier. The high trade deficit had sparked concerns and contributed to the weakening of the rupee against the dollar. According to the latest data by the Directorate General of Commercial Intelligence and Statistics (DGCIS), even after the downward revision, gold imports in November are up 186%…

Industry body CII expects the RBI to cut the benchmark interest rates next month to support sagging growth, its President Sanjiv Puri said on Wednesday and stressed the need to boost job creation through targeted interventions for labour-intensive sectors in the upcoming Budget. In an interview with PTI, Puri flagged “sticky” food inflation, highlighting the need to build agricultural resilience and de-linking it from the interest rates under the inflation targeting framework, arguing that it is on account of climate change and not really influenced by the monetary policy. Puri is also the Chairman and Managing Director of ITC. Finance…

After world-beating economic growth last year, India’s policymakers are scrambling to head off a sharp slowdown as worsening global conditions and domestic confidence wipe out a recent stock market rally. On Tuesday, Asia’s third-largest economy forecast annual growth of 6.4% in the fiscal year ending in March, the slowest in four years and below the government’s initial projections, weighed by weaker investment and manufacturing. The downgrade follows disappointing economic indicators and a slowdown in corporate earnings in the second half of 2024, which have forced investors to rethink the country’s earlier outperformance and cast doubts over Prime Minister Narendra Modi’s…

Real GDP growth will come lower than the official estimate at 6.2 per cent in the ongoing fiscal year and inch up to 6.5 per cent in FY26, a foreign brokerage said on Tuesday. The Q2FY25 growth number at 5.4 per cent was disappointing, HSBC said in a report, adding that it expects the gross value added growth in the December quarter to go up to 6.5 per cent. “Our 100 indicators analysis shows that growth indicators have improved since September, but remain weaker than June,” the report said. It said 65 per cent of the indicators are growing at…

India’s Consumer Price Index (CPI) inflation is expected to moderate to 5 per cent in December 2024 from 5.5 per cent in November, according to a report by Bank of Baroda.The report highlighted a positive outlook on inflation, driven by significant corrections in the prices of key vegetables such as tomatoes, onions, and potatoes. “We expect CPI to moderate to 5 per cent in Dec’24 from 5.5 per cent in No’24. The outlook on inflation looks positive as prices of tomato, onion and potato witnessing even further correction” the report said. The report noted that prices of these vegetables have…

Finance minister Nirmala Sitharaman has received a wide gamut of suggestions, including for incentives to spur private investments and employment, tax cuts to lift sagging urban consumption, and a comprehensive manufacturing policy, as she concluded on Monday her weeks of customary stakeholder consultations for the upcoming Union Budget.The pre-budget consultations were held against the backdrop of a sharp deceleration in economic growth in the September quarter amid subdued urban demand and a contraction in public capex in the aftermath of the 2024 general election. The Budget for 2025-26 will be presented less than two weeks after a change of the…

NEW DELHI: The upcoming budget is likely to give a boost to exports of value-added products, especially those that are not labour intensive, by offering them rupee export credit at competitive rates. Currently, only micro, small and medium enterprises (MSMEs) benefit from incentives under the Interest Equalisation Scheme. However, these benefits are capped at Rs 50 lakh against Rs 10 crore earlier. Most of the goods they make are labour intensive. Otherwise, the benefits for 410 products, called tariff lines in trade parlance, ended on December 31. “The number of products which get the interest equalisation benefits may be reduced…

New Delhi: Senior officials from the commerce ministry, and commercial wings of Indian Missions of 20 countries will hold a three-day meet, beginning here on Monday, to discuss ways to promote exports of goods and services, an official said. Commerce and Industry Minister Piyush Goyal will also interact with these commercial representatives on January 6. The issues, which would come up during the three-day celebration included opportunities and challenges and the way ahead in six focus sectors (of goods and services each) in 20 countries of significance; non-tariff barriers; logistics; WTO (World Trade Organisation) matters; and role and importance of…

Finance Minister Nirmala Sitharaman’s 2025 Budget has to undertake a host of measures to address the economic landscape, with a focus on India’s inflation which has been a key concern for policymakers.Despite the RBI keeping policy rates constant at 6.5 per cent since February 2023, inflation has continued to be a problem with temporary reliefs intermittently. Both the Reserve Bank of India and the Finance Ministry have pointed out that if inflation is allowed to run unchecked, it can undermine the prospects of the real economy. The RBI’s Monetary Policy Committee kept its key interest rate unchanged in its last…

Agriculture minister Shivaraj Singh Chouhan on Saturday reviewed various schemes with state agriculture ministers and sought their suggestions on ongoing programmes and budget allocation ahead of the Union Budget. During a virtual meeting, Chouhan expressed satisfaction over the agriculture and allied sector’s likely higher growth rate of 3.5-4 per cent in the 2024-25 fiscal year, and urged state governments to work at a “faster pace”, according to an official statement. He welcomed the State Bank of India’s report showing that the rural poverty rate declined to below 5 per cent for the first time in FY24 from 7.2 per cent…

Mumbai: The Reserve Bank of India (RBI) has accelerated gold purchases since October to mitigate revaluation risks to its foreign exchange stockpile and minimise currency volatility, with a part of the reserves that have come off record highs since late September likely also being used to cushion the rupee’s fall against the US dollar.The central bank bought 20 tonnes of gold during October-November, compared with 30 tonnes during the first six months of the current financial year, showed an ET analysis of latest RBI data. “The buying of gold by central banks is driven by the need to diversify assets…

Gujarat, Karnataka, Maharashtra, Odisha, Tamil Nadu and Delhi are among the 13 states and Union Territories that have been categorised as “achievers” in the logistics index chart 2024, according to a report released by the Commerce and Industry Ministry on Friday. The index is an indicator of the efficiency of logistical services necessary for promoting exports and economic growth. In 2023 also, 13 states and UTs were in the achievers category. The other states and UTs in the “achievers” category are Chandigarh, Haryana, Telangana, Uttar Pradesh, Uttarakhand, Assam, and Arunachal Pradesh Andhra Pradesh, Goa, Bihar, Himachal Pradesh, Madhya Pradesh, Punjab,…

New Delhi: The government has set up a working group under NITI Aayog member Ramesh Chand for revising the base year of the current series of Wholesale Price Index (WPI) to 2022-23 from 2011-12 currently. The group will suggest the commodity basket of WPI and Producer Price Index (PPI) with base year 2022-23 considering structural changes in the economy and review the existing system of price collection and suggest improvements, the commerce and industry ministry said in a statement Thursday. “The Working Group has been asked to submit its final report to the Office of the Economic Adviser within 18…

Budget 2025: The financial sector, especially banks on Thursday made a case for tax sops in the upcoming Budget for fixed deposits to support savings which have seen reduction in recent past. Suggestions regarding improving efficiency of capital markets and increasing capital market inclusion were also made during the pre-Budget meeting with Finance Minister, Edelweiss Mutual Fund MD & CEO Radhika Gupta told reporters here. Recommendation regarding incentivisation towards long-term saving, both debt and equity, were also made, she said. Finance Minister Nirmala Sitharaman on Thursday chaired the seventh pre-Budget consultation with stakeholders from the financial sector and capital markets.…

India’s goods and services tax (GST) collections rose 7.3% to `1.77 lakh crore in December from the year earlier, slowing from an 8.5% year-onyear increase in November, official data showed Wednesday. The muted growth came on the back of a sharp jump in refunds and a slowdown in consumption. Experts attributed itto the postfestive season slump and expect a pickup in the March quarter. “The 7.3% growth in GST collections is in line with a bit of a slowdown in GDP (gross domestic product) growth,” said Abhishek Jain, indirect tax head and partner at KPMG. “As it’s expected that GDP…

New Delhi: India aims to cross $1 billion of organic product exports next year and the country is exploring Mutual Recognition Agreements (MRAs) in sensitive exports like fisheries which face higher rejections, an official said Wednesday.India’s organic food exports have grown to $494.80 million in 2023-24 from $213 million in 2012-13 with the major export destinations being the US, EU, Canada, UK, Switzerland, Australia, middle east and Asian countries. The major export items are cereals and millets, processed food, tea, spices and medicinal plant products, among others. “Quality issues for export consignments are a bigger concern than tariff barriers,” said…

India’s fiscal deficit touched 52.5% of the annual target in the first eight months of this fiscal year, higher than 50.7% recorded in the same period last year, due to increased revenue expenditure and muted growth in net tax revenue, showed official data released Tuesday.Revenue expenditure grew for the fourth consecutive month through November, rising 7.8% year-on-year. Growth in net tax revenue was sluggish at 0.5%. The Centre had pegged its FY25 fiscal deficit target at 4.9% of GDP. In absolute terms, fiscal deficit was at ₹8.5 lakh crore in the first eight months of this fiscal, lower than ₹9.1…

The commerce ministry’s arm APEDA has revised the NPOP’s regulations to make it more farmer-friendly and help India achieve USD 2 billion exports target for organic food products by 2030, a government official said. The National Programme for Organic Production (NPOP) provides standards for organic production and procedure for accreditation of Certification Bodies. The standards and procedures have been formulated in harmony with other International Standards regulating the import and export of organic products. The eighth edition of NPOP will be released on January 9 here. “The revised edition has more farmer-friendly features. It will bring more clarity and help…

MUMBAI: The central bank’s Financial Stability Report projected that commercial banks could witness a rise in the share of bad loans and that their capital buffers may decline in extreme stress scenarios.It also voiced concerns over lingering microfinance and consumer credit stress, while noting that more than a third of external commercial borrowings remains unhedged. The report, published on Monday by the Reserve Bank of India (RBI), forecast the economy will expand 6.6% in FY25, in line with the forecast given by outgoing governor Shaktikanta Das announcing the last monetary policy on December 6. GDP growth had retreated to 5.4%…

New Delhi: The government on Monday extended the minimum export price (MEP) of $2,000 per tonne on natural honey for one more year till December next year. Exports below this MEP value are not permitted.“Minimum export price on natural honey is extended beyond December 31, 2024, till December 31, 2025,” the directorate general of foreign trade (DGFT) said in a notification. The minimum price was imposed in March this year. The major exporting destinations include the US and UAE. In a separate notification, the DGFT revised the import policy for soda ash to “free” from “restricted”a din imposed a Minimum…

For the rupee, this year has been a story in quarters – and the last hasn’t been particularly flattering. The pace of its retreat against the US dollar adds, at least theoretically, imports-fed inflation risks, and another layer of complexity to a decision on the cost of funds in an economy that logged its most circumspect pace of growth in seven quarters in the three months to September.It is not unusual for the currency of an emerging market to depreciate vis-a-vis the US dollar. The rupee is no exception to that rule. This year will mark the seventh straight calendar…

In line with the successful implementation of the faceless assessment by the Income Tax department, EEPC India has proposed to the government to roll out a faceless GST audit focusing on empowering the MSME sector. ET Year-end Special Reads “The faceless GST audit system, by using technology and ensuring anonymity, will reduce compliance costs. A faceless system will streamline procedures allowing MSMEs to focus on growth and innovation,” said Pankaj Chadha, chairman, of EEPC India. EEPC India in its pre-budget recommendation has also proposed that Reverse Charge Mechanism (RCM) related liabilities should be eligible for the Amnesty scheme. Some RCM…

Weddings have been a blessing this year, not just for the couples but also for the inflation-weary economy. Sales of gold, jewellery, apparel, edible oil, packaged staples and household appliances have increased in the last two months of 2024. Industry executives said there has been an up to 25% year-onyear rise in sales of gold and jewellery during the core wedding season of November-December. For large packs of packaged staples such as rice, ghee and edible oil, sales grew by up to 15%, while increasing 6-8% for apparel. Strong consumer goods demand during the twomonth period is a rare bright…

The ministry of labour and employment is confident of bringing in all 36 state and union territories (UTs) in India on board by end of the current financial year on draft Rules across the four Labour Codes. This could pave the way for the smooth roll-out of Labour Codes, pending since 2020, later next year. “All 36 states and UTs are expected to complete harmonization and pre-publication of draft rules by 31st March 2025, including Delhi and West Bengal,” labour and employment secretary Sumita Dawra told ET. “This has been possible following extensive consultations with states this year through six…

New Delhi: Consumption inequality among rural and urban residents in India declined further in 2023-24 and non-food items continued to dominate average monthly expenses across the country, results of the latest Household Consumption Expenditure Survey (HCES) published Friday showed.The average estimated Monthly Per Capita Consumption Expenditure (MPCE) in rural India rose 9.2% to ₹4,122 in 2023-24 from the previous year. In urban areas, the metric climbed 8.3% to ₹6,996. The metrics do not reflect monetary values of items received free of cost by eligible beneficiary households through various social welfare programmes. “The increase is largely due to government support towards…

Consumption inequality in rural as well as urban areas declined during August 2023-July 2024 period as compared to a year ago, according to the latest Household Consumption Expenditure Survey released on Friday. The Gini coefficient declined to 0.237 from 0.266 for rural areas and to 0.284 from 0.314 for urban areas during the period under review, a statement by Ministry of Statistics & Programme Implementation on the survey said. The Gini coefficient statistically measures consumption inequality and wealth distribution within a society. The “consumption inequality, both in rural and urban areas has declined from the level of 2022-23,” stated the…

The depreciation of Indian rupee against the US dollar is expected to push the country’s import bill by about USD 15 billion, think tank GTRI said on Thursday. Compared to December last year, the Indian Rupee (INR) has depreciated 2.34 per cent against the US dollar, moving from Rs 83.25 to Rs 85.20, while the Chinese Yuan has weakened by 0.06 per cent, the Global Trade Research Initiative (GTRI) said. It added that this depreciation of the INR will negatively impact gold imports, especially as gold prices have surged 27 per cent from USD 2,066.26 per ounce in December 2023…

India’s MoU with the US on critical minerals will be “a step forward” for their engagement as the scaling up of this will lead to more binding commitments fructifying to benefits under the US’ Inflation Reduction Act (IRA), the government said Thursday.New Delhi has proposed a critical minerals partnership agreement (CMPA) with the US in sectors like electric vehicles. “India re-iterated its keenness to get into the CMPA with USA, leading to a pathway under the IR Act,” the commerce department said in its year-end review for 2024. The two sides inked an MoU on Critical Minerals Supply Chains in…

NEW DELHI: The Centre is likely to raise the outlay for its key roads scheme by nearly 10% in the budget for the next fiscal year to deepen its rural push, recognising the high multiplier effect of such productive spending on the economy.The Pradhan Mantri Gram Sadak Yojana (PMGSY) scheme received a budgetary allocation of Rs 16,100 crore for this fiscal. Connectivity in Remote AreasThis was higher from the revised estimate of Rs 14,800 crore in FY24. “The government intends to maintain its rural focus. The PMGSY or the Prime Minister Rural Roads in particular, will see a hike in…

A cost-benefit analysis of exchange rate movements shows that the benefits of depreciation of the Rupee, adjusted for inflation, is more in the form of exports than an appreciation that appears to be better for importers, an RBI study shows. The metric is known as the Real Effective Exchange Rate, (REER).“ The empirical findings indicate that in India depreciation in REER improves trade balance while appreciation deteriorates it” the study titled “Real Effective Exchange Rate and its Implications for India’s Trade Balance” said. The study was published in the Reserve Bank’s latest monthly bulletin. “ The impact of REER depreciation…

New Delhi: GST is not applicable on the sale of old vehicles if an individual sells an old and used car to another individual, sources said. Sources further said that only registered persons such as businesses involved in the purchase and selling of old and used vehicles, are liable to pay GST on the margin. At the GST Council meeting held on Saturday, the council recommended 18 per cent GST on the margin of the sale of all old and used vehicles, including electric vehicles (EVs). Earlier, different GST rates were applicable to the sale of old vehicles and old…

Prime Minister Narendra Modi interacted with a group of eminent economists and thought leaders in preparation for the Union Budget 2025-26 at the NITI Aayog premises on Tuesday afternoon.The meeting was held on the theme “Maintaining India’s growth momentum at a time of global uncertainty”, a statement from Prime Minister’s Office said. In his remarks, Prime Minister thanked the speakers for their insightful views. He emphasised that Viksit Bharat can be achieved through a fundamental change in mindset which is focused towards making India developed by 2047. Participants shared their views on several significant issues including navigating challenges posed by…

The Centre is likely to launch a pilot of the Bhavantar Bhugtan Yojana – a price support scheme that compensates farmers for the difference when the prevailing market price falls below the minimum support price (MSP) – for cotton farmers from Telangana’s Adilabad next month. ET Year-end Special Reads A meeting of the committee instituted for this purpose, headed by agricultural economist and Niti Aayog member Ramesh Chand and comprising representatives of the industry, growers and state governments, took place last week, multiple people who attended the meeting told ET. As most of the farmers have sold their cotton crop…

Retail inflation for farm workers and rural labourers dipped to 5.35 per cent and 5.47 per cent in November compared to 5.96 per cent and 6 per cent, respectively, in October this year. The All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) registered an increase of 5 points each in November 2024, reaching levels of 1,320 and 1,331, respectively, a labour ministry statement said. The CPI-AL and CPI-RL were 1,315 points and 1,326 points, respectively, in October 2024. “The year-on-year inflation rates based on CPI-AL and CPI-RL for the month of November 2024 were recorded at…

Ahead of Donald Trump taking office, the Centre has reached out to industry seeking their ‘offensive asks’ from Washington. These asks relate to demands in the areas of export interest for India. “We have asked industry on how they see trade with the US and the possible impact of pronouncements that Trump has made. We have sought their inputs to evaluate the issues and their offensive interests,” said an official. The inputs will be used to develop India’s export strategy and evolve the approach in trade talks with the US. The exercise assumes significance with Trump threatening to impose reciprocal…

Demands of certain developed countries from India to negotiate ‘investment protection’ elements under an FTA is inappropriate as negotiating the matter as part of a separate chapter under the trade pact could have larger and detrimental implications, source said. Legally speaking, they said, the investment protection element provides a wide range of obligations and commitments bestowed upon foreign investors, which are expansive in nature. “Recently, a lot has been heard about countries that are desiring India to negotiate ‘investment protection’ elements vis-a-vis investment chapter as part of the free trade agreement (FTA). However, this is incorrect,” one of the sources…

States will be eligible for additional targeted allocations for disaster-related programmes through a 50-year, interest-free loan scheme, officials aware of the matter told ET.This will provide states substantive fiscal support to rebuild infrastructure and undertake mitigation measures, they said. The Centre has also proposed an additional `5,000 crore incentive under the scheme to encourage urban planning. A set of guidelines for availing of loans under this window has been circulated to state chief secretaries, the officials said. This follows an assurance by Union finance minister Nirmala Sitharaman to state finance ministers at Friday’s prebudget discussions. The Scheme for Special Assistance…

Finance Minister Nirmala Sitharaman on Saturday provided a significant relief to payment aggregators. While announcing the decision of the 55th GST Council Meeting, she said that payment aggregators who do less than Rs 2,000 transcation are eligible for exemption. However, it does not include payment gateways and fintech services. More to come. Nominations for ET MSME Awards are now open. The last day to apply is December 15, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award.

India could spare gift vouchers, offered by companies, particularly in the retail sector, from the levy of Goods and Services Tax (GST), said people with knowledge of the matter. The GST Council, the apex decision-making body for indirect tax, is likely to take up several issues, including the tax on gift vouchers and insurance products, besides increasing the levy on used cars, including electric ones, to 18% from 12% now. It’s also likely to clarify the levy of tax on food delivery apps and flavoured popcorn. Union Finance Minister Nirmala Sitharaman, who arrived in Jaisalmer on Friday, will chair the…

Policy priority should be on restoring the inflation-growth balance, said Shaktikanta Das, former Reserve Bank governor, while voting for a status quo on the short-term lending rate earlier this month. Das, and three other members of the rate-setting panel — Monetary Policy Committee — voted in favour of keeping the repo rate at 6.25 per cent, while the other two members favoured reduction in the rate. In its December bi-monthly monetary policy, the Reserve Bank of India (RBI) kept repo rate unchanged but cut the cash reserve ratio that banks are required to park with the central bank, as it…

New Delhi: US Ambassador to India Eric Garcetti highlighted the potential of the US-India partnership, emphasising the need to lower tariffs and to increase trade and make it more fair and equal. While addressing an event organised on Thursday by the US-India Business Council (USIBC), Garcetti said, “We need, together, to lower tariffs, not to see them go up. We need, together, to increase trade and to make it more fair and equal. We need to, together, make sure that there’s training and talent that meets the needs of companies on both sides of the Indo-Pacific.” He further said, “We…

The Central government has released Rs 47,225 crore to the states and union territories under the Smart Cities Mission till November 15 and out of which Rs 44,626 crore has been utilised, the Lok Sabha was informed on Thursday. In a written reply to a question, Union Minister of State for Housing and Urban Affairs Tokhan Sahu said the work orders have been issued till November 15 in 8,066 crore amounting to Rs 1,64,669 crore, of which 7,352 projects (i.e. 91 per cent of total projects) amounting to Rs 1,47,366 crore have been completed under the mission. The Ministry of…

New Delhi: India has begun a detailed sector-wise analysis, drawing up multiple scenarios, to prepare for a possible increase in tariffs on product exports to the United States under the Donald Trump administration, multiple people familiar with the matter told ET. “Ministries and departments are examining various scenarios, apprehending such a move by the US and possible remedies,” one of the persons said. President-elect Trump on Tuesday had said the US will impose reciprocal tariffs on Indian goods because New Delhi imposes high tariffs on American goods. Independent experts said India could relook at import duty on specific products and…

Subscribers of retirement fund body EPFO and Employees’ State Insurance Corporation may soon be able to use the claim settlement amounts through e-wallets, a top official said on Wednesday. Replying to a question on EPF withdrawal from ATMs, Secretary in the Ministry of Labour and Employment Sumita Dawra told PTI, “This is an area of great interest for the insured person, for a contributor. How can I withdraw my money more easily.” In cases of auto settlement… the money goes to the bank account and they in any case are able to withdraw it from the bank account, from any…

The economy will expand at a healthy pace in the coming quarters, finance minister Nirmala Sitharaman said, terming the growth deceleration in the three months through September to 5.4% as a “temporary blip.” Replying to a debate on the first batch of supplementary demands for grants in the Lok Sabha, the FM also ruled out any “generalised slowdown” in manufacturing, growth in which had slumped to 2.2% in the second quarter. The lower house later approved the first batch of supplementary demand for grants for FY25, involving an additional net spending of ₹44,143 crore. Half the 43 manufacturing segments in…

India’s progressive sugar production during the ongoing 2024-25 sugar production season trails by 17% year-on-year due to higher diversion of sugar for ethanol and a late beginning of the sugarcane crushing operations in Maharashtra and Karnataka, said industry body Indian Sugar and Bio-energy Manufacturers’ Association (ISMA). “Sugar production till December in the current season has reached 61.39 lakh tonnes, against 74.05 lakh tonnes produced last year on the corresponding date,” said ISMA. The increase in diversion of sugar for ethanol is one of the reasons for lower sugar production. “This year sugar diversion towards ethanol is estimated to be higher…

India’s business activity touched a four-month high of 60.7 in December, ending the year on a positive note with a rise in new business intakes, according to a private survey released on Monday. The HSBC Flash India Composite Output Index, compiled by S&P Global, increased from November’s reading of 58.6. On average, the reading was 60.4 in 2024, compared with 59.6 in 2023. Both goods and services sectors reported increased output. The Composite Purchasing Managers Index (PMI) is a weighted average of comparable manufacturing and services PMI indices. The HSBC Flash India Manufacturing PMI rose to 57.4 from a two-month…

There is no timeline for introduction of comprehensive regulatory guidelines for the Virtual Digital Assets (VDA) industry, Parliament was informed on Monday. Virtual Digital Assets (VDAs) are by definition borderless and require international collaborations to prevent regulatory arbitrage. Therefore, any comprehensive regulatory framework on the subject can be effective only with significant international collaborations on evaluation of the risks and benefits and evaluation of common taxonomy and standards, Minister of State for Finance Pakaj Chaudhary said in a written reply in the Lok Sabha. Further, he said, the need to balance investor protection and innovation must be assessed in light…

New Delhi: India should diversify its IT exports to mitigate risks arising from potential tariffs under the Trump administration as a significant portion of India’s IT export revenue comes from the US, think-tank Global Trade Research Initiative (GTRI) said Sunday. This is part of a five-pronged strategy to navigate a potential trade era under incoming US President Donald Trump. Lowering import tariffs, strengthening its data policies, rejecting the IPEF trade pillar and boosting Make in India are the other four suggestions for India. In a report, GTRI also highlighted that Mexico, Canada and the Asean benefited more from the US-China…

UPL-Sustainable AgriSolutions (UPL-SAS) is spearheading a transformative approach to Indian agriculture, leveraging technology, digital innovations, and a holistic strategy to address the complex challenges facing the country’s farming ecosystem, CEO Ashish Dobhal revealed in an exclusive interview. With agriculture spanning 400 million acres and involving 130 million farmers, 80-85 per cent of whom are smallholders, the company is reimagining its role from a crop protection product seller to a comprehensive solution provider. “Each state has its own nuance, cropping pattern, and cultural nuances of farming,” Dobhal explained, underscoring the intricate landscape of Indian agriculture. Emerging from a challenging period, Dobhal…

Mumbai: Bentley Systems, the Nasdaq-listed infrastructure engineering software company, does not see any slowdown in India’s infrastructure spending which will help its India business grow faster than the average of the company, said a senior company official. Bentley Systems develops, sells, and supports software for the design, construction, and operation of infrastructure. Their software is used in the building, plant, civil, and geospatial markets. “Even though a lot of infrastructure work is done by engineering firms and private companies, it is tied to public funding, and there’s no slowdown in public funding for infrastructure. Infrastructure investments are going to be…

New Delhi: Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) has provided Rs 2 lakh life insurance coverage to over 21 crore beneficiaries, ensuring financial security for families in times of uncertainty, the Finance Ministry said on Saturday. The Finance Ministry in a social media post on X added that the cumulative enrolment under the PMJJBY has recorded at 21.67 crore, and the cumulative number of claims received was 860,575, worth Rs 17,211.50 as of October 20 this year. PMJJBY is a one-year life insurance scheme renewable from year to year, offering coverage for death due to any reason. Persons in…

The group of ministers (GoM) on compensation cess will likely approach the GST Council, seeking an extension beyond the December 31 deadline to firm up its report, a person aware of the matter said. The 10-member GoM under Union minister of state for finance Pankaj Chaudhary may need at least six more months to wrap up discussions and finalise the report, given the complexity of the matter, said the person. The GST Council will take a final call on the extension, most likely in its next meeting scheduled for December 21. The GoM was set up in September to make…

India’s economic growth forecast for the financial year 2024-25 has been revised downward by Fitch Ratings, now standing at 6.4%, a drop from its earlier estimate of 7.0%. The downgrade follows the Reserve Bank of India’s (RBI) recent decision to cut its own growth projection for the same period to 6.6%, down from 7.2%. “Fitch forecasts India’s GDP to expand by 6.4% in the financial year ending March 2025 (FY25) and 6.5% in FY26, slowing from the 8.2% pace in FY24. However, India’s economic growth remains strong relative to that of global peers and supports our asset performance forecast.” the…

NEW DELHI: The Finance Ministry Thursday said that the National Asset Reconstruction Company Limited (NARCL) has so far acquired 22 accounts with an exposure of Rs 95,711 crore, and banks resolved 28 accounts worth Rs 1.28 lakh crore through other resolution mechanisms, subsequent to offers made by NARCL. The secretary, department of financial services (DFS), M. Nagaraju, chaired review meetings Thursday with stakeholders, including representatives from Public Sector Banks, the Insolvency and Bankruptcy Board of India (IBBI), the Ministry of Corporate Affairs (MCA), and the National Asset Reconstruction Company Limited (NARCL). He urged Banks to strengthen synergies with NARCL for…

New Delhi: The government on Thursday sought Parliament’s nod for additional net expenditure of Rs 44,143 crore in the current fiscal, mainly on account of higher spending by agriculture, fertiliser and defence ministries. The first batch of Supplementary Demands for Grants for 2024-25 was tabled in the Lok Sabha by Minister of State for Finance Pankaj Chaudhary to seek approval of Parliament to authorise gross additional expenditure of Rs 87,762.56 crore. Of this, proposals involving net cash outgo aggregate to Rs 44,142.87 crore and gross additional expenditure, matched by savings of the Ministries/ Departments or enhanced receipts/recoveries, aggregates to Rs…

NEW DELHI: The Union Agriculture Ministry has suggested that district administration should be involved in procurement of onion to ensure transparency and check irregularities in the purchase process. In a written reply to Lok Sabha, Minister of State for Food and Consumer Affairs B L Verma said, the Department of Agriculture constituted a fact finding committee to look into allegations of irregularities in the procurement of onions under Price Stabilisation Fund (PSF) by National Agricultural Cooperative Marketing Federation of India (NAFED). The department, vide OM (office memorandum) dated 4th November, 2024, “conveyed the suggestions that concerned district administration should be…

The Labour Ministry is upgrading its IT systems for enhanced services to India’s workforce. EPFO subscribers will be able to withdraw from their provident funds directly from ATMs starting next year, said Labout Secretary Sumita Dawra on Wednesday. “We are settling claims quickly and are working to make the process easier to improve the ease of living. A claimant, beneficiary, or insured person will be able to access their claims conveniently through ATMs, with minimal human intervention,” Dawra said. “Systems are evolving, and every two to three months, you will notice significant improvements. I believe there will be a major…

Mumbai: Ahead of the GST Council meeting on December 21, payment gateway operators have made representations to the finance ministry against levying 18% GST on commissions earned on small-value digital payments up to ₹2,000, multiple people in the know said. Payment gateways have submitted that any tax levy will hurt the growth of digital payments as they will pass on the added burden to merchants. The council will consider a proposal on levying GST as the Fitment Committee sees payment aggregators as facilitators for card transactions. Currently, these firms charge a payment gateway fee of 0.5% to 2% on each…

India is likely to produce a record amount of sugar in the next marketing year from October after millions of farmers expanded cane cultivation, encouraged by ample water supplies and declining prices of competing crops, farmers and industry officials told Reuters. The rebound in production would allow the world’s second-largest sugar producer to resume exports in 2025/26, they said, after a lack of rain cut cane yields and led to two years of restrictions. Indian exports could cap global sugar prices, traders said, by increasing supplies in the world market at a time when dry weather is widely expected to…

Jaipur: The Rajasthan government can explore establishing a township for data centres along the Delhi-Mumbai expressway in the state, Union commerce and industry minister Piyush Goyal said Monday. Addressing a session on manufacturing and industry 4.0 at the Rising Rajasthan Investment Summit here, Goyal said: “Rajasthan chief minister Bhajan Lal Sharma said he is scouting for land between Delhi and Jaipur to establish an artificial intelligence city or a city for setting up data centres that support AI.” According to Goyal, this city could offer working opportunities to professionals or to students graduating from universities in the state. “This city…

Consumer Price Index (CPI) inflation in India is expected to decline to 5.5 per cent year-on-year in November, compared to 6.2 per cent in October, according to a recent report by Morgan Stanley. The report anticipated that the monthly index will register a sequential decline, primarily attributed to falling food prices. The report also pointed to a deceleration in core CPI, which includes goods and services excluding food and fuel, as a contributing factor. It said, “We expect CPI inflation to edge downwards to 5.5 pcY in November from 6.2pcY in October, aided by a moderation in food prices, even…

Mumbai: The Reserve Bank of India (RBI) will have to infuse more liquidity into the banking system through additional measures as the expected impact of the 50-basis-point cash reserve ratio (CRR) cut announced Friday will likely wane within a few months, economists said. The central bank will likely use other liquidity instruments, like open market operations (purchases), foreign exchange swaps, and long-term variable rate repo auctions (VRR), they said. The RBI in its policy statement on Friday said that it will continue to be ‘nimble and proactive’ in its liquidity management operations to ensure that money market interest rates evolve…

New Delhi: Industry body CII has suggested the government to stick to the fiscal deficit target of 4.9 per cent of GDP for 2024-25 and 4.5 per cent for 2025-26, cautioning that “overly aggressive targets” beyond these could adversely affect India’s economic growth. “India has been growing rapidly amidst a slowing global economy. Prudent fiscal management for macroeconomic stability has been pivotal to this growth,” said Chandrajit Banerjee, Director General, CII, elaborating on suggestions for the forthcoming Union Budget. CII also highlighted the announcement in the Union Budget 2024-25 to keep the fiscal deficit at levels that help reduce the…

The outstanding tax demand of the income-tax department has grown more than fourfold to ₹42 lakh crore as on October 1 this year, from ₹10 lakh crore in 2019-20, according to a report of the parliamentary standing committee on finance. Of this amount, ₹27 lakh crore is flagged as difficult to recover by the department. The dues sought by the department include ₹5.42 lakh crore where the assessees are not traceable, ₹8.60 lakh crore where there are not adequate assets attached for recovery and more than ₹2 lakh crore stuck in companies facing insolvency proceedings or liquidations, the report, tabled…

SBI forecasted India’s GDP growth at 6.3 pc, lower than RBIs projection of 6.6 pc for FY25 in its latest report. The average growth of the first two quarter of FY 25 is now at 6.05 pc. The report forecast comes after the RBI sharply downgraded its real GDP growth projection for FY25 from 7.2 per cent to 6.6 per cent during its latest Monetary Policy Committee (MPC) meeting, citing balanced risks to the economy. It said “We believe that GDP growth for FY25 will be lower than the RBI’s estimate and we are pegging the GDP growth at 6.3…

Former Federal Reserve Chairman Ben Bernanke has a nickname: ‘Helicopter Ben.’ This he acquired not because he threw currency bills from the helicopter literally, but borrowed economist Milton Freidman’s metaphor to tell an audience how he would fight a depression when zero percent interest rates aren’t helping. It is in a way expressing the power of liquidity to drive demand in an economy – something he delivered as Fed Chair after the Lehman Brothers collapsed in 2008. He used liquidity as a tool to move the economy more than anyone else had ever done before. On Friday, when the popular…

India in 2019 decided not to join the mega free trade agreement RCEP as the pact was not addressing its concerns and since then there has been no change in that position, Commerce and Industry Minister Piyush Goyal said on Friday. The RCEP (Regional Comprehensive Economic Partnership) agreement is being negotiated among 10 ASEAN members (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam) and their six free-trade pact partners Australia, China, India, Japan, South Korea and New Zealand. In a written reply to the Rajya Sabha, Goyal said that the structure of RCEP did not adequately…

The government plans to switch to Computer-Assisted Personal Interviewing for collection of price trends, gearing up for revision of the base year to 2024 from 2012 and weightage of items tracked for Consumer Price Index to enhance the efficiency and accuracy of data. The revision of the CPI base year is currently under progress and weights for the items will be derived from the Household Consumption Expenditure Survey (HCES) 2022-23, the ministry said. The inflation data based on the new base year will be released in 2026. The CPI tracks monthly retail prices of goods and services, currently covering 299…

Chief economic advisor (CEA) V Anantha Nageswaran on Thursday nudged the private corporate sector to hire more and find the “right balance between capital-intensive and labour-intensive growth”, underling that while profits of private listed companies, as a percentage of GDP, hit a 15-year high in March 2024, their wage cost increase dwindled. Without a judicious balance between the share of corporations’ income making up their profits and that going to workers as wages, there won’t be adequate demand in the economy for companies’ own products to be bought, the CEA said. Sustained income growth bolsters both consumption and savings, which…

Mumbai: December 11, 10 am. The person in the 18th floor corner room of the central bank’s Mint Street Tower would have to deal with grim truths: a shadow of slowdown, a weaker currency, sticky inflation, and huge expectations to deliver. Will Shaktikanta Das, the longest serving RBI governor, continue to wage the arduous battle? While Das may well get an extension (perhaps for a year), no one would have asked the question even a few months ago. But despite all the accolades and after running a steady ship, Das is completing his six eventful years in RBI on a…

US President-elect Donald Trump’s pledge to impose high tariffs on three of its trading partners, including China will provide huge export opportunities for India and the domestic industry should prepare itself to tap into that, Niti Aayog CEO BVR Subrahmanyam said on Wednesday. Trump last week vowed to introduce 25 per cent tariffs (or customs duty) on imports from Mexico and Canada and an additional 10 per cent on China. “Whatever Trump has announced so far…I think there are opportunities for India. We are a man at first slip, the ball is coming in our direction. Are we going to…

New Delhi: The pilot project of the PM Internship scheme has seen a number of candidates withdrawing after being offered internships, people aware of the development said. In the first week of companies extending offers under the scheme in November, the acceptance rate was about a third, with many candidates backing out at the last minute, one of the persons told ET. The acceptance rate rose to about two-thirds of the offers later and is gradually improving further, he said. Some candidates have cited reasons, including applying for the scheme under pressure from parents, for backing out later, he added.…

Sixty lakh new job cards are issued under the MGNREGS on average every year and the government has no role in the deletion of the job cards which is done based on various parameters, the Centre said on Tuesday. Minister of State for Rural Development Chandra Sekhar Pemmasani told the Lok Sabha that 57 per cent of the rural development budget is allocated for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and asserted that Aadhaar-seeding of the cards enhances transparency. He was responding to Congress leader K C Venugopal, who claimed that the names of 10.43 crore MGNREGS…

Economists from major banks expect the Reserve Bank of India to lower the cash reserve ratio this week. This move would help support growth by providing liquidity without changing benchmark rates. The RBI might also use open market operations to manage liquidity. This is in response to lower forex reserves, government cash balance, and foreign portfolio outflows.

After India’s economy slumped to a seven-quarter low of 5.4% in the July-September quarter, much lower than consensus estimates and below the Reserve Bank of India’s 7% projection, annual growth forecasts are being scaled down. The slowdown is ringing alarm bells in different quarters. One of India’s biggest conglomerates, Tata Group, is readying to buck the economic slowdown. Tata Sons chairman N Chandrasekaran has urged group company CEOs to aggressively pursue growth despite mounting uncertainties in domestic and global markets, as per an ET report based on information from sources. In internal strategy sessions and business reviews, Chandrasekaran has emphasised…

A sharper-than-anticipated slowdown in economic expansion in the second quarter has prompted economists to slash their forecast on India’s growth for fiscal 2025. Citing risk to the economic outlook and the likelihood of a rate cut by the Reserve Bank of India in February, they now predict gross domestic product (GDP) to grow 6.1-6.8% in the year ending March 31, lower than the central bank’s forecast of 7.2%. GDP growth was the slowest in seven quarters at 5.4% in July-September, hurt by low consumption and weak investment demand. CareEdge Ratings lowered its FY25 GDP forecast to 6.5%, from 7%. “Urban…

The RBI is likely to keep the benchmark interest rate unchanged for one more time in its bilateral monetary policy review later in the week as inflation has breached its upper tolerance limit and may also moderate the growth forecast given the disappointing second quarter GDP numbers, experts say. Reserve Bank Governor-headed six-member Monetary Policy Committee (MPC) is scheduled to meet on December 4 to 6, 2024. The decision of the rate-setting panel will be announced on December 6 by Governor Shaktikanta Das. It was widely anticipated that the RBI would start reducing the benchmark interest rates soon but the…

Ethyl alcohol squeezed out of maize was supposed to make a dark fossil fuel slightly green— ethanol-blended petrol, the government said, would bring down dependence on crude oil imports and reduce carbon emissions. It has, however, cast a shadow on several other sectors—it has pushed up the prices of poultry feed and cooking oils and hit the wallets of consumers and the profits of oilseed farmers. CHICKENS COME HOME TO ROOST Long before policymakers decided to ferment corn to produce biofuel that can be mixed with petrol, it was chicken’s favourite food. According to industry estimates, India’s poultry sector consumes…

The central government’s capital expenditure is expected to surge by an impressive 25 per cent year-on-year (YoY) in the second half of the financial year 2025, according to a report by Jefferies The report also noted that the overall expenditure of the government is also expected to surge by 15 per cent. It highlights that despite an increase in populist schemes in the run-up to elections, the central government remains committed to investing in infrastructure development over welfare-driven measures. The report underlined that while populist policies have gained traction, especially in state elections, the central government’s spending priorities show a…

New Delhi: India’s economic growth slumped more than expected to a seven-quarter low of 5.4% in the September quarter, dragged down by weak manufacturing and tepid demand amid high inflation and elevated interest rates. An ET poll had forecast growth at a median 6.5%. The sharply lower print will dent the full-year growth number while intensifying pressure on the Reserve Bank of India (RBI) to advance interest rate cuts. Gross domestic product (GDP) growth was 6.7% in the April-June period and 8.1% in the second quarter of FY24. Chief economic advisor V Anantha Nageswaran said the unexpected deceleration was an…

Revenue collections of states, as percentage of their gross domestic product, are budgeted to beat the pre-Covid level in 2024-25 on the back of projected improvement in their own revenue streams as well as central transfers, according to a report by PRS Legislative Research. States have budgeted their combined revenue mop-up at 14.3% of gross state domestic product (GSDP) for 2024-25, compared with 13.3% in the last fiscal and 13.8% in the pre-Covid year of 2018-19, the report said. While the pandemic flared up in India in 2020-21, it did impact economic output towards the end of 2019-20, especially in…

Commerce and industry minister Piyush Goyal Thursday termed the US President-elect Donald Trump as a “friend of India” and brushed aside apprehensions that the new administration may impose some tariffs on Indian goods, saying there was no need to “jump the gun”. Addressing a media briefing here, he said talks on strengthening the bilateral economic partnership can begin once the confirmation processes are over. “We need not jump the gun and let the new government take charge and express their formal and official view. To the best of my understanding of the situation and my own experience with Trump’s administration,…

India’s global trade story has long been shaped by its relationships with two of its largest partners: the United States and China. While these relationships have grown significantly over the past decade, they show stark contrasts that often remain as lesser-known facts, at least like Crisil called it in an investr note. India’s trade with the U.S. and China reached $120 billion and $118 billion respectively in fiscal 2024, doubling over the last decade. However, the similarity ends here, Crisil said, as it notes hat India has a $35.3 billion trade surplus with the U.S., while it faces an $85.1…

About three in five independent director positions on the boards of various central public sector enterprises (CPSEs) are lying vacant, prompting the Centre to step up efforts to fill in the posts, people aware of the details said. As many as 441 of 750 independent or non-official director positions on the CPSE boards were vacant at the end of October, showed the latest official data. The vacancies surged from 392 at the end of September, as the tenures of many of the incumbents ended last month. The focus is on filling the 200 vacancies on the boards of listed CPSEs,…

India and Japan are relatively shielded from the risks posed by US President-elect Donald Trump’s tariffs, according to a recent analysis from Morgan Stanley. The investment bank expects structural tailwinds and the continuation of favourable policy mixes in both Asian countries to help offset the potential headwinds posed by rising tariffs. For Japan, Morgan Stanley’s team noted that about 70 per cent of Japanese products were exempted from tariffs imposed by the United States, primarily because they were not easily replaceable. The exemption is seen as a significant advantage, enabling Japan to avoid the worst impacts of US tariff policies.…

New Delhi: India has sought certainty from the European Union that the bloc will not impose new non-tariff barriers in future hurting the country’s interests. India’s insistence on such an assurance comes as the two sides assess the progress of their free trade agreement (FTA) negotiations, which restarted two years ago. “We have said that any new regulations may bring uncertainty for us. This is something they recognise and agree with,” said an official. The issue was discussed last week between senior officials of the two sides. India and the EU have exchanged their key demands under the FTA and…

With GenAI storming its way into India Inc. operations, tax functioning is also expected to get a boost from this. Nearly 94 per cent of Indian CFOs and tax leaders recognized GenAI’s potential to significantly enhance tax functions and transforming tax and finance operations, according to the EY Tax and Finance Operations (TFO) Survey 2024. According to the report, this is a dramatic surge from just 19 per cent in 2023, further highlighting GenAI’s prowess in the tax industry. The survey, which gathered insights from 1,600 leaders across 32 countries and 18 industries—including 70 CFOs and tax leaders from leading…

New Delhi: The government Monday announced a national mission to promote natural farming among 10 million farmers across the country with a budget outlay of ₹2,481 crore. The Cabinet decision aims at creating a robust system for sustainable farming. GoI’s share in this will be ₹1,584 crore and states’ ₹897 crore till the 15th Finance Commission (2025-26). “There is a need to improve the quality of soil and maintain the health of the people with chemical-free food… The National Mission on Natural Farming is a path-breaking decision,” Information and Broadcasting Minister Ashwini Vaishnav said in a media briefing after the…

S&P Global Ratings on Monday retained India’s GDP forecast for the current financial year 2024-25 at 6.8 per cent while cutting economic growth forecasts for the next two years. For 2025-26 and 2026-27, the global rating agency pegged India’s GDP forecast at 6.7 per cent and 6.8 per cent, respectively, down 20 basis points (100 basis points is equal to 1 percentage point) from its previous estimates. For 2027-28, the rating agency pegged India’s forecast at 7 per cent. “In India we see GDP growth easing to 6.8 per cent this fiscal year (2024-25) as high interest rates and a…

The Reserve Bank of India’s gold purchases has helped the central bank to hold up foreign exchange reserves amidst a huge pullout by foreign portfolio investors that saw reserves contracting by $47 billion in five weeks. While the value of foreign currency assets dipped $1.1 billion on an incremental basis since the beginning of the fiscal 2024-25 upto November 15, value of gold in reserves rose $13 billion in the same period and help shore up overall foreign exchange reserves by $11 billion, the latest Reserve Bank of India data shows. Reserves including gold, foreign currency assets and SDR are…

KRBL Ltd, a publicly listed company popular for its ‘India Gate’ basmati rice, is foraying into mixed spices and rice bran edible oil segments. India Gate brand has already forayed into other premium non-basmati rice categories that typically sell at a premium. Their mixed biriymasala is already on e-commerce platforms for about a year now and it is planning to launch it in brick-and-mortar general stores next financial year. “It is already on e-commerce platforms for a year now. Now we are planning to launch it in brick-and-mortar general stores. Looking at the success of biriyani masala, we are actually…

Our Bureau New Delhi: The World Bank has announced six reforms to address concerns about the Worldwide Governance Indicators (WGI) based on recommendations of an external review panel. The panel, commissioned in early 2023, submitted its report in September 2024. As a result, the WGI will now be recognised as a World Bank product, subject to the similar replication and review processes as other official bank products. It will also shift to the DEC Global Indicators Group (DECIG) in the coming year, aligning it with other key bank initiatives, according to the statement issued by the World Bank earlier this…

Mumbai: The Reserve Bank of India (RBI) injected funds into the banking system as the weighted average call rate, a barometer for short-term borrowing costs, rose 23 basis points above the policy repo rate at 6.73% on Friday. Surplus liquidity in the banking system shrank to ₹84,154.75 crore due to monthly GST outflows. This is akin to a fine-tuning exercise to manage call rates near the repo rate, as monthly tax outflows drew surplus liquidity out of the banking system, money market experts said. The RBI injected funds worth ₹25,000 crore via a variable rate repo auction (VRR) to ensure…

MUMBAI: India’s foreign-exchange stockpile shrank the most on record last week, surpassing the absolute decline last seen during the peak of the global financial crisis, as cushioning the rupee in the face of an unrelenting dollar surge after the US presidential polls compelled the central bank to dig deep into its coffers, dealers said. Revaluation losses further added to the depletion. At $17.8 billion, the reserves fell the most in the week ended November 15, eclipsing the $15 billion retreat in the week of October 24, 2008, when the subprime sinkhole had swallowed global financial assets – and emerging market…

India’s business activity rose at its fastest pace in three months in November, helped by an improving services industry and record job creation, but output inflation spiked to a near 12-year high, a survey showed. The findings are likely to add to economic growth in the ongoing festive quarter which is expected to pick up thanks to a rebound in private consumption, despite Asia’s third-largest economy reporting its highest retail inflation in 14 months. HSBC’s flash India Composite Purchasing Managers’ Index , compiled by S&P Global, rose to 59.5 this month from October’s final reading of 59.1, taking the expansionary…

Staples and essentials are largely bucking the consumption slowdown at mostly double-digit volume sales growth, which industry executives said indicates consumers are not cutting spending on daily household items unlike earlier periods giving hope to the industry that the demand recovery is not too far away. As per Adani Wilmar, Tata Consumer Products, Colgate, LT Foods, Spencer’s Retail and market researchers NielsenIQ and Kantar, volume sales of packaged products in categories such as edible oil, spices, atta, toothpaste, rice, pulses grew in July-September quarter which most of them said will continue in the current October-December quarter. In contrast, typically during…

India is striving to maintain a stable currency to protect its economy from global spillovers and financial stability risks, the Reserve Bank of India (RBI) said. India’ central bank said that the value of the rupee is determined by market demand and supply, reflecting the broader macroeconomic fundamentals of the country. These observations were made in the central bank’s monthly bulletin released on Wednesday, co-authored by officials including Deputy Governor Michael Patra. The statement addresses criticism that the RBI has excessively intervened in the foreign exchange market to artificially stabilize the rupee. To counter significant volatility, the RBI has utilised…

New Delhi: Coal import in April-September increased 1.4% year-on-year reaching 129.5 million tonnes (mt) compared to 127.8 mt in the corresponding period of the previous year. In value terms, imported coal in the said period amounted to ₹1.4 lakh crore, a decline from ₹1.5 lakh crore during the same period last year. The reduction in value has resulted in savings of ₹13,629 crore because of a more cost-effective approach to coal procurement, the government said on Wednesday. The ministry of coal is committed to reducing dependency on imported coal where feasible, it said, highlighting the steps taken by the government.…

The National Skill Development Fund (NSDF) will soon invest its surplus funds in term deposits to get better returns on the corpus used for imparting skills training in the country. The fund has invited expressions of interest from public sector banks to invest around Rs 900 crore in fixed deposits for a period of one year, the ministry of skills development and entrepreneurship said in a notification. The plan is to prepare a panel of banks for investment of surplus funds in fixed deposits. As per the notification, the highest bidder (H1) be offered 60% of the funds earmarked for…

New Delhi: The government has begun discussions with stakeholders, including banks and regulators, to develop a ‘Creditworthiness Index’ as part of its push to improve credit access for micro and small businesses. The proposed index will rate companies across industries using common parameters, helping lenders evaluate borrowers with weak financials, limited documentation, or minimal transaction history, multiple people aware of the development told ET. The initiative is part of the broader plans to form a National Trade Finance Committee and create a framework for expanding export credit, they said. “This is being evaluated to see if an industry-wide index with…

India is set to play a pivotal role in global workforce growth, contributing 20 per cent of it between 2023 and 2050, according to a report by Angel One Wealth. In contrast, China is expected to witness a decline in its workforce during this period. The report highlighted country’s remarkable progress in income levels. It noted that by 2030, the number of high-income households in the country is expected to triple. It said “By 2030 high-income households are expected to triple, while middle-income households will nearly double making India the fastest-growing nation in terms of per capita income”. This will…

The finance ministry on Monday tweaked norms for capital restructuring by central public sector enterprises (CPSEs) and introduced flexibilities for them to better add to their value creation strategy. It directed them to cough up an annual dividend of at least 30% of their net profit or 4% of their net worth, whichever is higher. As per the earlier norms, the dividend payment requirement was 30% of the profit after tax or 5% of net worth, whichever was higher. The latest norms, however, specify that financial sector CPSEs like non-banking financial companies need to pay a minimum annual dividend of…

As the global economy continues to grapple with geopolitical tensions and financial market volatility, India stands at a critical juncture in its growth story. DBS Bank’s latest report offers a nuanced perspective on the challenges and opportunities awaiting the Indian economy in 2025. While the outlook remains optimistic, the report, authored by Radhika Rao Senior Economist, DBS Bank and Philip Wee, Senior FX Strategist, DBS Group, highlights both structural strengths and cyclical headwinds. Trump 2.0 and its implications for India One of the key global factors influencing India’s outlook is the potential return of Donald Trump to the U.S. presidency.…

New Delhi: The Central Board of Direct Taxes (CBDT) has recovered ₹35,500 crore of outstanding dues for the April-September period of this financial year, ET has learnt. This includes ₹23,000 crore of corporate tax and ₹12,500 crore of personal income tax. Officials said the figure is going to rise further as the board has asked field formations to focus on recovery and set zone-wise recovery targets. “The focus is on data-based recovery and we aim to recover over ₹90,000 crore to ₹1 lakh crore from the outstanding demands,” a senior official told ET. The income tax department had made a…

Another Onion Express carrying the key staple kitchen essentials arrived in Delhi, aiming to put a check on its prices across the national capital region. About 1,341 tonnes of onion arrived in Delhi from Nashik on a special goods train, Himanshu Shekhar Upadhyay, Chief Public Relations Officer, Northern Railway, told ANI. These onions were directly taken from the farms to the nearest railway network available, reducing transport time and costs. “Farmers are benefiting from this,” he said. At the same time, the railways’ spokesperson said that the availability of onions at this large scale would also be a win-win situation…

Kochi: Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said that the Indian economy and financial sector are well placed to handle any kind of spillovers from global events. The country’s external sector is also strong and our current account deficit has remained within manageable limits and stood at 1.1 per cent. “Today, the growth of the Indian economy presents a picture of stability and strength,” he said, while addressing a programme as part of the launch of the Kochi International Foundation here. Earlier, in 2010 and 2011 it was in the range of six to seven per…