Tag: growth

CEA says India’s 2023 GDP growth was 7.2 per cent, surpassing expectations

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Chief Economic Advisor to the Government of India, Dr V Anantha Nageswaran, on Monday said the real GDP growth for the year ending March 2023 was 7.2 per cent, which surpassed expectations, as the underlying momentum in the economy was quite strong.

During an interaction with the Industry, organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) here, Nageswaran explained the current state of the Indian economy and said the government was optimistic about its medium-term performance.

Addressing the gathering, he said while goods exports were on the weaker side in 2022-23 due to the war in Ukraine and oil price rise, services exports did very well for the country.

“We have a good story to share about the Indian economy. The real GDP growth for the year ending March 2023 was 7.2 per cent, surpassing expectations. The underlying momentum in the economy is quite strong. We expect the final number to be even higher than 7.2 per cent,” Nageswaran said.

He pointed out that the data shows that India’s 4th quarter GDP of 6.1 per cent was actually much better than several other countries at this point.

Talking about the wholesale price index’s deduction, he said it was not a drawback nor a drag on growth but “it is actually going to lower input cost for our businesses as well”.

“The Wholesale price index is coming down because of the slowdown in oil prices and the slowdown in food prices and in fact it is now negative. So people think when the wholesale prices come down, it may lead to a slowdown in GDP growth. Yes. We are expecting 6.5 per cent GDP growth which is lower than last year’s 7.2 per cent. But that is the trend growth that India will continue to achieve. In fact this number can be higher if the export sector also performs, but that is going to be a challenge,” he said.

The CEA acknowledged that merchandise export growth was something which needed continued efforts to maintain in order to keep our market share or gain the market share.

“That’s where the industry has to invest in R&D, has to do better marketing etc and diversify our product range and focus on quality. It’s going to be a hard grind for the rest of the decade because global growth is not going to be very strong in the rest of the decade but services sector growth is surprisingly doing well for us because many companies now rely on India not only for IT enabled services,” but others as well, he said.

Global companies rely on India even for accounting, risk management compliance, back office work and their dependence on India through global capability centres (GCC) have become much wider, he added.

Also read: India’s GDP expected to clock 6-6.3% growth in June quarter: Moody’s

He claimed that macroeconomic management in India has been prudent during pandemic when compared to other advanced nations.

“The overall macroeconomic management in India has been prudent and sensible, avoiding overstretching ourselves during the pandemic. This has contributed to our stable growth and inflation management,” he said.

Nageswaran said while the country has made significant strides, “we must remain vigilant and continue our efforts” towards growth and development.

“While progress has been made, there is still work to be done,” he said.

He pointed out that there are nearly one lakh recognised Startups in India out of which over 43,000 are led by women.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sowing the Seeds for Resilient Growth Deloitte Marketing Trends 2023: The India Story

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Marketing has undergone a renaissance over the past 10 years, and there’s more dynamism & disruption to come, for organizations of all shapes and sizes. The future of marketing in India is being shaped by a multitude of tectonic forces coming together to shift consumer sentiment and behavior. To help CMOs make sense of the emerging challenges & identify resilient levers of growth, Deloitte has published its latest edition of “Marketing Trends 2023: The India story”. The report unearths 4 macro trends – pertaining to evolving marketing investments, emerging marketing technologies, sustainability & creativity, which we describe in the section below along with one key action we can take in the local context.

Ashvin Vellody, Partner, Deloitte India 

Trend 1: Brands answer economic instability with marketing investments

CMOs in India will continue to act as key growth drivers, growing their organization’s capability to endure future challenges. Future-ready brands are investing in their customers and building their own moats – like, introducing martech like customer data platforms, or implementing hyper personalization strategies or becoming synonymous with immersive digital experiences to connect with customers where they are.

Action Point: With market volatility, comes immense opportunity. It is advisable for CMOs and CDOs to start making their marketing investments (subject to their organizational realities) to earn the dividends in the long-term, rather than waiting and watching.

Trend 2: Rising technologies for marketers to watch

Without giving in to the hype, adapting and Indianizing emerging technologies such as the ‘responsible’ metaverse, promises to unlock new frontiers in immersive tech and branding opportunities. Unlimited reality & immersive digital experiences have broadened imaginations, but these are merely fresh platforms to analyze customer behavior from, on a new scale and depth.

Action Point: Brands should judiciously dip their toes by selecting pilot use case/s to get acquainted with the metaverse continuum. We advise CMOs to build gradually as per the realities of the end consumer and the market, keep testing and focus on unlocking the human impact of the emerging tech, not the tech itself.

Trend 3: Creativity as a force for growth

For CMOs to continue offering superior human-first experience to their customers, their best bet is creativity. While data may be liquid fuel, creativity in the marketer’s playbook propels them to never settle for the status quo. Be it harnessing regional micro influencers to drive brand credibility, or gamifying/incentivizing digital payments, or even leveraging AI & voice cloning to create hyper personalized ads to boost small businesses, we strongly believe that creativity is every Indian CMO’s secret superpower to unlocking growth, innovatively.

Action Point: We advise CMOs to leverage design thinking, workshopping, exploring external perspectives to scale up creativity within the organization. This will not only help approach ambiguous business problems innovatively, but also transform creativity into a growth enabler rather than it being just an output of a marketing campaign.

Trend 4: Stepping up to the sustainability agenda

As an increasing number of customers in India are calling out sustainability as a critical parameter for brand choice, CMOs must view sustainability from a wider aperture – empowering a sustainable future for customers, colleagues, communities and, of course, the planet. We recommend marketers to take the lead on sustainability issues within organizations and walk the talk when it comes to proving that sustainability & profitability can coexist inside the boardroom and outside it.

Action Point: For CMOs and Experience officers, we recommend establishing a connect between the brand and the sustainability agenda, making it a pertinent and future-ready CEO agenda topic.

We have often heard that the leading companies use every challenge to shape it into an opportunity and 2023 is certainly turning out to be one such year for CMOs and CDOs to differentiate themselves.

We believe that our report “Deloitte Marketing Trends 2023: The India story” will help marketers steer their growth strategy efficiently and effectively in the coming months as they continue to deliver value for their customers.

Article Credits – Barsha Chakraborty, Manager, Deloitte Touche Tohmatsu India LLP

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Innovation and Indigenization – Unlocking India’s Growth Potential

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Powered by a GDP of $3.4 trillion, India is currently the world’s sixth largest economy and has one of the highest GDP growth rates globally. Estimates show that India will likely clock a 6.8%-7.1% growth rate in FY22-23. However, global economic uncertainties and inflation are looming large and might result in an economic slowdown. Moreover, US-Fed rate hikes, steep tax cuts in the UK, and a slowdown in China, add to this volatile economic environment.

Recently, to discuss the current state of the economy, CNBC-TV18’s Shereen Bhan was joined by N. Venkatram, CEO, Deloitte India. Shereen started the conversation by discussing the current domestic and global corporate mood, especially in light of the Russia-Ukraine war and commodity inflation. While these were major topics of discussion in the beginning of the year at the World Economic Forum held at Davos, India has emerged relatively resilient through these storms. Venkatram also spoke along similar lines and said, “As far as the general mood goes, I think services are doing extremely well. While people are talking about recession, be it in Europe or America, as far as India is concerned, we shouldn’t be talking ourselves into it. There is still a lot of growth left in India for many years to come.” However, he added that the manufacturing and MSME sectors in India have been struggling a little, while we do have exports in pharma and engineering.

The Demand Picture

The conversation then steered towards the demand picture in the current economy. Shereen pointed out that while the demand for two-wheelers and entry level passenger cars seems to have gone down, luxury cars and real estate sales have soared. N. Venkatram, CEO, Deloitte India addressed this and said, “While on the luxury side we’re not seeing abate, the reality is that no one is insulated from the shocks that hit the rest of the world. We were a very connected economy and prices and inflation have been persistent for us even through the pandemic.” This, he opined, has slowed down demand, especially for the mid-sized sector that is contemplating if increasing prices would just result in a piled-up inventory. He further added that in his opinion, inflation might only last till the end of the year and a core price increase could be damaging to businesses.

India and FDI Flows

Globally, central banks, including the RBI, have promoted moving rates higher up and India has seen a decent chunk of inflows with FDIs. In the wake of the economic conflicts between nations, especially with the way China is engaging with the world and vice-versa, India could potentially benefit from the situation. In this regard, Venkatram talked about a recent study carried out by Deloitte which had speculated that when India hits the 5 trillion economy mark, we would require a capital formation of about 8 trillion and at least 400-450 billion dollars of FDI. This doesn’t seem unlikely considering that India has continued to perform well in terms of FDIs. However, we might have taken a slight setback when it comes to becoming ‘China plus one’. While a lot will still get done in India, we might miss some opportunities such as on the currency or Forex side. “I think currency is a strength to us on the services side. So, the 1 trillion that comes from services will become easier. However, if I look at manufacturing in India, we must first build it for internal usage before we build it for the world. We must use this period of recession in other countries to strengthen ourselves and look at import substitution. The large companies that come to India are for the domestic market, which is our strength, rather than for exports”; Venkatram added. Indigenization and import substitution will not only bring down costs, but also de-risk us from the fluctuating rupee, the Deloitte CEO said.

Shereen voiced an important concern next, that despite many advantages, too much indigenization might choke imports and affect the economy negatively. To this, Venkatram reiterated his mantra of playing by our strengths and said that we must focus on in-house research and development. Almost 700 MNCs have their R&D centres in India and it’s time Indian companies also focus on innovations that can cut costs and make us more self-reliant. He gave an example of the automotive sector where India has shown tremendous advancement in recent years and components manufactured in India are being used internationally. The same can be done for, say, the semiconductors sector where there is a gap and a huge potential for growth. “The fundamental premise is if you’re good at R&D and design, the next piece is to make your products of international quality”; he went on to say.

We hadn’t anticipated the recovery process to take as long as it has. The forecast is too clouded by several factors, but as we evaluate the energy crisis in Europe and the slowdown in China over the coming months, we should start to gain some clarity. Considering demand-supply chains for core price hikes, increasing impetus on in-house manufacturing and R&D with indigenization could be the key takeaways from this riveting conversation.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India Inc’s march towards sustainable growth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Accenture invited eminent industry stalwarts to discuss modernization, sustainability, and technology disruption and how employees are at the core of it all.

As companies rapidly transform themselves digitally, C-suite executives now face the challenge of getting the physical and virtual worlds to co-exist. What are some of the key growth drivers that organisations need to be aware of? How can they achieve sustainable growth while attracting motivated employees who share the organisations’ vision that translates into a seamless customer experience?

Industry leaders across different industries joined in for a riveting discussion to answer some of these questions: Randhir Singh Kalsi, Member Executive Board, Marketing and Sales, Maruti Suzuki India; Vijayendra Singh, Chief Operating Officer, Apollo 24×7; Satish Sharma, President – APMEA, Apollo tyres; Ranjit Gupta, CEO of Ocior Energy; Piyush N. Singh, Senior Managing Director and Lead – India Business, Accenture; Sanjay Dawar, Managing Director, Global Strategy and Consulting, Accenture in India

Renewable is the “energy” of the future

The discussion kicked off with the increasing relevance of renewable energy. Historically, “renewable energy always needed to be pushed to the distribution companies. It was a lot more expensive than buying thermal power, whether it was coal or gas”, said Mr Gupta. Over the last five to seven years, however, the situation has changed. “Renewable energy is a lot cheaper than getting power from coal and gas”, he added.

Mr Piyush Singh looked at the situation from the standpoint of the consumer who demands that today’s solutions be sustainable. He stressed that sustainability cannot be an afterthought but as an essential part of the business model itself. “Technologies such as artificial intelligence can help in deploying outcomes for a much more sustainable society.”

Changing customer landscape

Indeed, customers have pushed companies to shift their mindset from merely chasing profitability. A sustainable approach towards the top and bottom line are equally important. For instance, aid Mr Piyush Singh. “Organisations have to be modern enough to be able to respond to those changes very rapidly as well as to be able to study those changes”, he added.

This is true of all major industries. Take healthcare, for instance. “In healthcare, one of the things that we are doing is what we call continuum of care, which is basically to try and make you healthier or look after your health even when you are at home,” said Mr Vijayendra Singh.

Talent is key

All of these applications and use cases would only be possible through evolving skill sets from an employee-base that shares the same sense of purpose. “Attracting talent is going to be one of the biggest challenges for not just professional services companies, but I think for the industry at large”, said Mr Dawar. Recruits need to be constantly up-skilled. “Therefore, what we do is we run consulting boot camps in order to make the talent coming in from campus ready to be able to consult for our clients”, said Mr Dawar.

Moreover, if any organisation lacks a “clearly defined purpose as to why it were in business, it is unlikely to retain talent”, said Mr Piyush Singh. “So, I think talent itself is the most disrupted part of our business”.

This is a Partnered Post

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Can Fin Homes eyes 18-20% growth; says rate increases aiding margin expansion

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In an interview with CNBC-TV18, Girish Kousgi, managing director and chief executive officer, Can Fin Homes, said that the company is looking at 18-20 percent growth. He mentioned that demand has been robust across segments and geographies.

Kousgi said, “Since last October, demand is quite robust across all profiles, all segments, geographies. I think if you look at the trend, it has been pretty good.”

He added, “As a company we are looking at 18-20 percent growth, both on book and disbursement.”

On salaried segment, he said that he expects the share to move back to 70 percent. Additionally, he mentioned that the company will be able to manage an average ticket size of around Rs 22 lakh.

“Every quarter we are plugging highest growth in terms of book and disbursements. In quarter two, it was about 74 percent for salaried and 26 percent for self-employed; earlier at a portfolio level it used to be about 70 percent and 30 percent. I think very shortly that will be back to 70 and 30,” Kousgi mentioned.

“A lot of restrictions in terms of generating new business and also to retain existing customers helped us to get into new segments, new markets, which actually helped us to increase our ticket size from 18 lakhs to about 22 lakhs,” he added.

He mentioned that margin has expanded in the past few quarters due to rate increases. In the next one year, rate increase could be up to 1 percent which Kousgi said, is manageable. He expects housing finance companies to do well on the margin front in a rising rate scenario.

On NPAs, he mentioned that it has declined for the company over the past 7-8 quarters.

“If you look at the last seven to eight quarters for Can Fin, NPAs have been dropping in terms of percentage, and that trend should continue for all good companies in the industry for the next few quarters,” he said.

Watch the video for the full interview.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Schaeffler India targets double-digit growth; plans to invest Rs 1,000 cr in 3 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Harsha Kadam, MD and CEO, Schaeffler India, on Friday, said that the company’s intention is to grow in double-digits. He also mentioned that the company is looking to export key product lines in the industrial segment.

He said, “Our intention is to continue to grow in double-digits certainly, and the capex that we are already making is in line with that so that we continue to grow the market in double-digits.”

“Talking about the industrial side of the business, while we do see demand in certain specific sectors, we have a very clear strategy to leverage cost competence and capability that exists in India to start exporting some of the key product lines. We will continue to make investments to grow our export business, which used to be in the range of 8-10 percent; we have reached a level of 14 to 15 percent and surely, we have plans to grow further on this number,” he said.

Also Read: Shriram Transport Finance bets on construction equipment segment; expects 10% AUM growth in FY22

On capex plans, he said that the company plans to invest Rs 1,000 crore in the next 3 years. He also explained that the company has been making investments across a spectrum of applications in the automotive side.

“Coming to the investment part, we have a clear plan to invest Rs 1,000 crore in the next 3 years, which we will continue to do. On the automotive side, with the shift that has happened already from diesel to gasoline engine technology, we have been making consistent investments across a spectrum of applications, both in the transmission systems, which is mainly the clutch, as well as in the engine applications,” he said.

Schaeffler India is an auto tech company, and has presence in the aftermarket and industrial spaces. The company recently posted its numbers. Its total revenue from operations for the December quarter came in at Rs 1,523.2 crore, up nearly 20 percent from the corresponding quarter of 2020 and 2.4 percent higher than the preceding quarter.

Meanwhile its net profit for the reporting quarter stood at Rs 190,6 crore as compared to Rs 141.6 crore on a year-on-year (YoY) basis. EBITDA margin also  improved to 18.8 percent from 18 percent YoY.

Also Read: Need to be selective in EV space; bullish on consumer durables: Kotak Mahindra AMC

On capacity utilisation, he said that the company is currently operating at 80 percent levels. However, it plans to make investments to augment capacity.

“We are running with 80 plus percentage of capacity utilization today. We will continue to make investments going forward and argument our capacity to ensure that we have enough headroom to deliver the much needed products in a growing market like India,” he said.

On chip shortage, he mentioned that there was some slowdown caused by it. He explained that the passenger vehicle (PV) and two- wheeler segment got impacted by it.

Also Read: Reliance Securities positive on Maruti; expects rebound in two-wheelers by Q2FY23

On e-mobility, he said, “We will continue to make investments as demand grows in the electric vehicle space.”

Watch the video for the full interview.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JK Cement sees improvement in Q4 EBITDA/tonne; no respite in raw material prices

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Rajnish Kapur, COO, JK Cement, mentioned that raw material prices still remain a worry and he does not see them easing at the moment. He also shared that as far as EBITDA/tonne is concerned, he is seeing an improvement in Q4 vis-à-vis Q3.

He said. “We don’t see easing up of the raw material costs at this point of time and therefore increasing pressure on the industry to improve its pricing which will therefore improve the margins as well.”

“If we look at the margins, as well as EBITDA per tonne in Q4, I don’t visualize too much of a drop as compared to Q3. In fact, if I talk of my company, I’m expecting an improvement as compared to what was in Q3. So I am actually looking at a margin increase in terms of maybe a couple of percentage points in Q4 for my business,” he explained.

Kapur is buoyant about Q4 as this quarter is generally marked by peak demand for the industry. In fact, he shared that the company is looking at a growth of 18-20 percent in grey business at the moment.

“Q4 is one of the peak demand months for cement industry. Overall, the industry is likely to end the year between 8 to 10 percent of growth. At JK Cement, in terms of pure cement, we had a 25 percent growth till now and we are expecting that by the time this quarter ends, the growth in terms of gray business will be anywhere between 18 and 20 percent year on year (YoY),” he said.

Also Read: JK Cement to hike prices in Q4, cuts volume growth guidance, says Rajnish Kapur

Watch the video for the full interview.

Catch all stock market updates here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RBI October Monetary Policy: Economic activity up but recovery uneven; inflation trajectory more favourable, says Shaktikanta Das

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) kept the repo rate unchanged in the fourth bi-monthly policy meet for the financial year 2021-22, governor Shaktikanta Das said on Friday.

The MPC voted unanimously to keep policy rates unchanged while it voted 5:1 to maintain an ‘accommodative’ stance .

With no change this time as well, the repo rate currently stands at 4 percent. The reverse repo rate has been maintained at 3.35 percent.

Repo rate is the rate at which banks borrow money from the Reserve Bank while reverse repo rate is the rate at which RBI borrows from banks. Commercial banks borrow funds only if they witness a shortfall in their funds. The monetary policy committee of a country uses the reverse repo rate as a tool to control the money supply in the country.

The central bank has left the key rates unchanged for the eighth consecutive time. It had last revised the policy rate on May 22, 2020 in an out-of-turn announcement amid the coronavirus lockdown to boost demand by cutting interest rate to a historic low.

The Marginal Standing Facility (MSF) rate also remains unchanged at 4.25 percent.

The announcement is in line with the Street’s expectations as it was largely expecting status quo. However, analysts anticipated a revised guidance on liquidity amid rising global commodity prices and domestic inflation.

Inflation continues to remain a big worry on the back of the demand-supply imbalance. Economists also believe the high commodity prices we have seen through the year have not been fully passed through consumers.

Governor Shaktikanta Das said that the RBI has taken more than 100 measures to proactively respond to the unprecedented crisis. India is in a much better place today than at the time of the last MPC meeting, said Das.

According to him, growth impulses are strengthening, and inflation trajectory is more favourable than expected. CPI inflation during July-Aug turned out to be lower than expected, as per Das.

The FY22 CPI inflation forecast has been lowered to 5.3 percent from 5.7 percent earlier. The Q2 FY22 CPI inflation is seen at 5.1 percent against 5.9 percent earlier while Q3 FY22 CPI is seen at 4.5 percent compared to 5.3 percent earlier. The Q4 FY22 CPI inflation forecast is retained at 5.8 percent while Q1 FY23 inflation is seen at 5.2 percent.

Macro indicators suggest economic activity has gained momentum, said Das, adding that improvement in monsoon in September, Kharif production, adequate food stock buffer, and lower vegetable prices will likely keep food inflation muted.

However, the governor said that while the overall demand is improving, slack still remains as recovery is uneven. “Output is below pre-pandemic levels; supply-side and cost pressures impinging on inflation,” said Das.

Das said GDP showed resilience as the 20.1 percent growth in Q1 was close to MPC’s forecast of 21.4 percent. Recovery in aggregate demand gathered space in Aug-Sept, according to Das, who added that ebbing of infections has been supporting private consumption.

​Support from aggregate demand from government consumption is also gathering pace and recovery in services is also gaining traction, however, contact intensive services are still lagging, said Das.

The RBI has retained FY22 real GDP growth forecast at 9.5 percent. Q2 FY22 GDP growth is seen at 7.9 percent against 7.3 percent earlier while Q3 FY22 GDP growth is seen at 6.8 percent vs 6.3 percent earlier. Q4 FY22 GDP growth forecast is retained at 6.1 percent and Q1 FY23 GDP growth forecast is maintained at 17.2 percent.

In an important announcement, Das said the need to undertake further GSAP operations at this point did not arise but RBI will remain in preparedness to conduct it if and when needed. It proposed to undertake 14-day VRRR auctions fortnightly, starting today, till December 3. Depending on evolving liquidity conditions, pace of government expenditure, the RBI may consider complementing 14-day VRRR actions with 28-day VRRR auctions.

Das said VRRR should not be interpreted as reversal of accommodative policy stance. “V in VRRR will also represent voluntary; no compulsion for banks to put money in this window,” he said.

The governor said that the regulator does not want “surprises”, hence the policy approach will be calibrated and more of gradualism. “Don’t want to rock the boat when we are so close to the shore,” said Das.

Among other non-policy measures, special 3-year LTRO of Rs 10,000 crore for SFBs was extended till December 31, proposal to introduce framework for retail digital payments in offline mode, proposal to increase per-transaction IMPS limit to Rs 5 lakh from Rs 2 lakh were announced.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Expect more than 7% growth for India this decade: CEA

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Chief Economic Adviser (CEA) K V Subramanian on Wednesday said India will clock over 7 percent annual growth during this decade on the back of strong economic fundamentals. During the current fiscal, he said, growth would be in double-digits and it could moderate to 6.5-7 percent in the next financial year.

The Economic Survey 2020-21, released in January this year, had projected GDP growth of 11 percent during the current financial year ending March 2022. The Survey had said growth will be supported by supply-side push from reforms and easing of regulations, infrastructural investments, boost to manufacturing sector through the Production-Linked Incentive (PLI) schemes, recovery of pent-up demand, increase in discretionary consumption subsequent to rollout of vaccines and pick up in credit.

“When you look at the data itself actually, the V-shaped recovery and quarterly growth patterns actually established that the fundamentals of the economy are strong…the kind of reforms that we’ve done on it, and the supply-side measures that we’ve taken will enable strong growth not only this year but going forward as well,” he said.

Growth will be aided by various structural reforms, including labour and farm laws, undertaken by the government, he said while addressing a virtual event organised by the US-India Strategic Partnership Forum (USISPF) “This decade will be India’s decade of inclusive growth. In FY’23, we expect growth to be between 6.5 to 7 percent, and then accelerating further as the impact of these reforms are seen. On average, I expect growth to be greater than 7 percent in this decade for India,” he said.

He also pointed out that the government is putting a lot of emphasis on capital expenditure as it has a multiplier effect. The Union Budget for 2021-22 has provided a capital outlay of Rs 5.54 lakh crore, an increase of 34.5 percent over the Budget Estimate of 2020-21.

The Budget estimate of capital expenditure for FY2020-21 was Rs 4.12 lakh crore.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow