National and international agencies, including the Reserve Bank of India (RBI), the International Monetary Fund (IMF), and the World Bank, in the last few months, have been steadily downgrading their FY 2020 growth forecasts for India. The most pessimistic growth rate of all forecasts is from the in...
Though a section of the press declared that the Reserve Bank of India (RBI) and the Government of India (GOI) were joint winners of the much awaited ‘mother of all board meetings’ that was organised on November 19, the undisputed fact remains that the RBI emerged unscathed.It did not lose anythi...
An open public dispute is currently onNormally, the differences between two institutions, one being the elected government whose political tenure is determined by periodical elections, as expected in a democracy and the other, a statutory institution, whose future is more certain, are settled ...
Though the Indian rupee recovered from the steepest fall of all times on October 11, things are yet to improve. The rupee has recovered from the record figure of Rs. 74.40 and is hovering around Rs. 73.40.The record fall was a reaction to the most unexpected decision by Reserve Bank of India (RBI) o...
We have seen in past that the market has been stunned by monetary policy actions of central banks. Last fortnight, it was different. The markets stunned the Reserve Bank of India.The Indian rupee plunged to Rs 74.22 per US dollar. The rupee fell to the lowest value ever in terms of th...
It is now recognised that trade deficit and current account deficits would widen if the government and the monetary authorities did not give up their stand-off position; and they should do much more beyond offering Band-Aid solutions. Their efforts to attract more inflows of capital of short term va...
Early this week, the slide-down of the rupee was relentlessly continuing. Indian rupee fell to the lowest level on Monday, September 10, Rs. 72.67 per US dollar; on Tuesday, it reached yet another low at Rs. 72.70. It looks it may fall further soon to Rs. 75.The ongoing currency crisis is not new. W...
The unprecedented floods in Kerala last month resulted in the death of 373. Around 1.2 million people from their homes and hearths were uprooted. They are now in relief camps.There are estimates of collateral damage: Rs. 20,000 crore or $2.86 billion. The state government has requested aid for...
The Indian currency is falling in value in terms of the US dollar. Most of the commodity imports of India, which are denominated in US dollars, happen to be critically essential commodities such as petroleum crude. India imports 75% of its total crude oil requirements. They are also half of the coun...
India’s central bank has to deal with challenges on multiple fronts.One is domestic inflation; another is falling value of the Indian rupee relative to US dollar; volatility in the global price of crude oil; outflow of capital, partly reflecting political uncertainties and the resultant decline in...
