During the recent monetary policy review meeting held between February 5 and 7, 2025, the Reserve Bank of India (RBI) made the decision to reduce the policy repo rate from 6.50% to 6.25%. This marks a change after maintaining the rate unchanged for eleven consecutive meetings, which is about five years. The new Governor, Sanjay … Read more
India’s gross domestic product (GDP) is expected to grow at around 18.5% in the first quarter of the current financial year, SBI noted in its research report Ecowrap, lower than the RBI’s 21.4% projection. “Based on our ‘Nowcasting’ model, the forecasted GDP growth for Q1 FY22 would be around 18.5% (with upward bias),” the report … Read more
Synopsis GDP is not produced by magic. Boring as it may sound, GDP results from deploying capital (investment) and labour, and the productivity of those two resources. The greater the amounts of these three factors of production, the faster a nation’s GDP grows. India has set an ambitious target of becoming a $5 trillion economy … Read more
The House passed a USD 1.9 trillion pandemic relief package early Saturday, 219-212, that includes USD 1,400 checks for most Americans and billions of dollars for schools, state and local governments and businesses. Republicans are overwhelmingly against the bill, raising concerns that the spending is vastly more than necessary and designed to advance policy priorities … Read more
Synopsis While the size of the GDP collapse is large, India is hardly alone in this. Deep economic contractions have been widespread across the world. Indeed, given the long lockdown that India imposed on itself, the fact that the economy shrank sharply should hardly be surprising. By Amartya LahiriIndia’s GDP contracted by 23.9% in Q1 … Read more
New Delhi: With COVID-19 still dominating major developments globally, the world economy is not likely to re-attain pre-pandemic output levels before 2022, says a report. According to Dun & Bradstreet Country Risk and the Global Outlook, “nothing about the pandemic can be classified as over, despite recoveries in activity levels in some economies in Q3, … Read more
By Enda Curran and Fergal O’Brien The world economy’s rebound from the depths of the coronavirus crisis is fading, setting up an uncertain finish to the year. The concerns are multiple. The coming northern winter may trigger another wave of the virus as the wait for a vaccine continues. Government support for furloughed workers and … Read more
Finance Minister Nirmala Sitharaman on Tuesday promised more policy interventions to revive the economy, and emphasised that green shoots are visible and the agriculture sector is driving growth. Indicators like electricity and fuel consumption, inter and intra-state movement of goods, PMI data and retail financial transactions are witnessing a pick-up, she said. Earlier this month, … Read more