Economy

PM Narendra Modi to tell states to raise electricity prices

Prime Minister Narendra Modi is to tell states to raise electricity prices in return for access to a financial bailout package, a politically contentious move that risks a backlash from farmers and consumers long used to free or cheap power. Modi has made overhauling country’s largely loss-making utilities , buckling under $66 billion of debts, a priority, convinced that if ... Read More »

Relation with FM Arun Jaitley is of highest order, says RBI Governor Raghuram Rajan

RBI Governor Raghuram Rajan on Tuesday said that he connected “very well” with Union Finance Minister Arun Jaitley and their relationship “is of the highest order”, ever since the minister moved into office. He said that people try to emphasise on differences rather than looking at the large areas of commonality. RBI Governor Raghuram Rajan on Tuesday said that he ... Read More »

IMF says growth favourable in India, reforms needed

Growth prospects for India remain favourable despite a slowdown in the global economy, but the government should speed up structural reforms and relax supply constraints in the energy, mining, and power sectors, the International Monetary Fund said on Tuesday. The Washington-based Fund marginally lowered India’s growth forecast to 7.3 percent this year, from its earlier estimate of 7.5 per cent, ... Read More »

Service sector output sluggish in September, says Nikkei PMI

Growth in India’s private sector output “faded” in September as both manufacturing and service sectors witnessed sluggish rise amid softer demand conditions across the country, a Nikkei survey said. The seasonally adjusted Nikkei India Composite PMI Output Index – that maps both the manufacturing and services sectors – fell from 52.6 in August to 51.5 in September, highlighting the weakest ... Read More »

Private equity investments may hit record high in 2015: Report

Private equity investments in India are poised to hit a record high this year, surpassing its previous milestone of $14.7 billion in 2007, as a result of large investments in the country’s online start-up sector, according to a research firm. Private equity investments in the first nine months of the year have already reached $13 billion from 504 transactions, according ... Read More »

PM Narendra Modi conveys concerns to Angela Merkel on ban of 700 drugs

Prime Minister Narendra Modi on Monday conveyed India’s concerns to German Chancellor Angela Merkel over banning of over 700 drugs two months back and asked her to use her influence in EU to remove the impediments for resumption of FTA talks with the 28-member bloc. After talks between Modi and Merkel, Foreign Secretary S Jaishankar said there was an understanding ... Read More »

Raghuram Rajan for free trade, open markets to tackle financial crisis

RBI Governor Raghuram Rajan on Monday stressed on the need for well-capitalised multilateral institutions and a consensus on free trade, open markets to overcome the global economic slowdown. Delivering a speech to mark the 65th anniversary of Sri Lanka’s Central Bank in Colombo, he said the current economic woes of the world was affecting all nations and urgent action was ... Read More »

Tax collection may fall Rs 50,000 crore short of Budget target

The government admitted on Monday that tax collection may fall 5-7 per cent (around Rs 50,000 crore) short of the Budget target, but expressed confidence that the economy will clock more than 7.5 per cent growth this fiscal. The twin deficits-fiscal and current account-have been reduced, Watal said, adding that the government is committed to achieving this year’s fiscal deficit ... Read More »

Govt to soon decide Monetary Policy Committee structure

The government will soon decide the structure of the Monetary Policy Committee (MPC), which will fix the benchmark interest rate of the RBI and set inflation targets, said Economic Affairs Secretary Shaktikanta Das.   On the Monetary Policy Committee, the government will take a decision very soon. The procedure for obtaining Cabinet approval, that process is in very advanced stage ... Read More »

Govt raises import duty on ghee, butter and butter oil

The Central government has increased the import duty of ghee, butter and butter oil from 30 per cent to 40 per cent to protect domestic dairy industry from steep fall in international prices of milk and milk products. Announcing the decision, Revenue Secretary Hasmukh Adhia said that the dairy sector was just one of the several industrial sectors that are ... Read More »