India cuts interest rates for a third time this year

The Reserve Bank of India (RBI) has cut interest rates for the third time this year to help boost growth in Asia's third largest economy.

Indian Economy to Expand by 5.8% in Fiscal 2014-15

The Indian economy, Asia's third-largest, remains on track to expand by about 5.8% in the financial year to 31, March 2015, the finance ministry's top official has said Finance Secretary Arvind Mayaram also said India's industrial production data suggested that corporate order-books were building up.

India's industrial output picks up in September

MUMBAI, India (AP) -- India's industrial production picked up by 2 percent in September over the previous year, the government said Tuesday.

India Trade Deficit Narrowed in September

HONG KONG — India’s trade deficit dropped to its lowest level since early 2011, data released Wednesday showed, providing a rare piece of good news from an economy that has been weighed down by inadequate infrastructure, a gaping current account deficit and a currency that has plummeted in recent months.

India's long wait for rate cut seen ending as RBI reviews policy

MUMBAI (Reuters) - The Reserve Bank of India is widely expected make a modest cut in interest rates later on Tuesday to support an economy set for its slowest growth in a decade, with a deeper cut unlikely due worries over the fiscal and external deficits and inflation.

India Inflation at 10-Month High

NEW DELHI – Indian inflation rose to the highest level in 10 months in September, limiting the central bank's ability to cut rates to help support the slowing economy.

Drought delivers fresh blow to reeling Indian economy

MUMBAI (Reuters) - A summer drought makes a bad situation worse for an Indian economy already crippled by a sharp slowdown in growth, persistent inflation and a politically hamstrung government.

India GDP Growth At Stall Speed...Til 2015

India’s total GDP in dollar terms isn’t seen expanding by much over the next 8 years. According to a report by Dun & Bradstreet, India’s GDP will top $5 trillion by 2020. But that’s the same forecast they gave in their India 2020 report last August.

Govt to announce steps on Monday to improve economy

Expressing concern over signs of weakness in the Indian economy, Finance Minister Pranab Mukherjee on Saturday said the government is set to announce certain measures on Monday to improve market conditions in consultations with the Reserve Bank.

India factory output dips 3.5% as manufacturing shrinks

India's industrial production fell unexpectedly in April, led by a drop in manufacturing, raising concerns about a slowdown in its economy.

Struggling coalition leaves Indian economy in the doldrums

It didn't go unnoticed that the best news for the beleaguered Indian economy last week came not from the markets but the Gods via the weatherman.

India proposes telecom policy changes as scandals hit

India's telecom minister, Kapil Sibal, has proposed a slew of changes to the country's telecom policy in an attempt to streamline the industry.

He said that merger and acquisition rules will be relaxed to allow consolidation in the sector.

Mr Sibal also indicated that as part of the new policy, the government will separate mobile licences from spectrum fees.

Indian economy likely to grow at 8%: RBS Asia Securities

RBS Asia Securities is expecting a low gross domestic product (GDP) than the street expectations. Parul Saini, ED, RBS Asia Securities Singapore says that Indian economy is expecting a growth of 8%.

According to him, the net borrowing is likely to be at around 4.2%. “On the earnings front, we came into the year expecting earnings to be roughly 5-8% below consensus. The risk to numbers coming in below our estimates, there might probably be 2-3% downside to that but not significant at this point in time,” he adds.

Indian PM unveils steps to curb food price inflation

India has announced a slew of measures to curb spiralling food prices.

The prime minister's office said the government would review import and export of essential commodities and sell onions at a restricted price.

Experts, however, say the measures are too little, too late and a repeat of already failed steps.

Meanwhile, government data released on Friday showed that the wholesale price index (WPI) had risen to 8.43% in December - the highest in a year.

This was attributed to the soaring price of vegetables, milk and other staples which took food inflation to 18.32% last month - the highest in more than a year.

Admitting that food prices had risen to "unacceptable" levels, the authorities said it was proving difficult to manage inflation.

The price of onions, a staple food used in many dishes, has risen dramatically - even prompting India's government to approach long-time rival Pakistan for help.

A kilogram of onions, which usually costs 20 rupees in India, went up to 85 rupees (£1.20; $1.87) last month. It is now about 60-65 rupees a kilo after government intervention.

The government said state-run stores would sell the vegetable at 35 rupees a kilo. The expected arrival of 1,000 tonnes of onions from Pakistan soon would also ease the situation, it said.

The price rise has been blamed on unusually heavy rains in the bulk-producing western states of Maharashtra and Gujarat and in southern states, as well as on hoarders and speculators.

The ban on export of onions, pulses, cooking oil and cheaper varieties of rice will continue. State agencies would also retail edible oil and pulses at a reasonable rate, the authorities said.

Economists said the government had shied away from taking bold steps and that the steps would be unlikely to help much.

Discontent over food inflation has been a major headache for the government.

High prices of essential commodities such as onions have previously sparked unrest and helped bring down the national government in 2004.

Source: BBC
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