Indicators
India's forex reserves hit a fresh high of $683.99 bn: RBI data
India's forex reserves have risen for the third consecutive week, driven by strong dollar inflows. The reserves increased by $13.9 billion over three weeks, with a notable $5.5 billion inflow on August 30 due to MSCI rebalancing. Foreign currency assets rose by $1.49 billion to $599 billion, and gold reserves increased by $893 million to $61 billion.
India's forex reserves jump $ 2.3 bn to hit new all-time high of $ 683.99 billion
India's foreign exchange reserves increased by $2.3 billion to a new record of $683.99 billion for the week ending August 30, according to the Reserve Bank of India (RBI). This follows a previous rise of $7.02 billion to $681.69 billion the week before.
Food inflation to moderate, but any surprise in monsoon or floods may trigger it upwards: UBI report
Food inflation in India is expected to decrease further in the coming months due to a progressing Southwest monsoon and sufficient water in reservoirs. Kharif crop sowing has increased, with paddy, pulses, oilseeds, millets, and sugarcane showing higher year-on-year growth. However, uneven spatial distribution of rainfall remains a concern.
Cost of vegetarian thali drops by 8 pc, non-vegetarian thali price down 12 pc: CRISIL
Retail inflation has eased, leading to a notable drop in the prices of both vegetarian and non-vegetarian thalis in August compared to last year and the previous month. The cost of a vegetarian thali declined by 8 per cent while non-vegetarian thalis saw a 12 per cenrdrop. Significant decreases in tomato and LPG prices contributed to this reduction.
Lower Q1 GDP numbers a blip, no letup in growth: RBI Governor Shaktikanta Das
India's growth remains strong despite a slight dip in GDP expansion to 6.7% in April-June, attributed to reduced government spending during elections. RBI Governor Shaktikanta Das highlights robust consumption and investment demand, with private consumption rebounding and investment growing. Inflation concerns persist but are expected to ease with favorable monsoon progress.
India’s average household expenditure on food less than half for the first time since 1947: Working Paper
A recent working paper, on the website of the Economic Advisory Council to the Prime Minister (EAC-PM), said significant changes are unfolding in India's food consumption pattern. Titled ‘Changes in India’s Food Consumption and Policy Implications: A Comprehensive Analysis of Household Consumption Expenditure Survey 2022-23 and 2011-12’, the paper is authored by Mudit Kapoor of the Indian Statistical Institute and Shamika Ravi, member of EAC-PM and others.
Domestic demand drives services sector PMI to 5-month high in August
India's services sector activity reached a five-month high in August, driven by increased business activity and new work, despite a slowdown in employment growth. The HSBC India Services Business Activity Index rose to 60.9 from 60.3 in July. However, the outlook for the private sector has moderated due to competitive pressures.
Labour income stagnated since 2019, primarily due to Covid and technological upgradation: ILO
The World Employment and Social Outlook report, released by the ILO on Wednesday, says the global labour income share fell by 0.6 percentage points from 2019 to 2022 and has since remained flat putting upward pressure on inequality, suggesting nations should come up with comprehensive policies to ensure that the benefits of technological progress are broadly shared.
India remains fastest growing paper market in world: Report
India's paper market is experiencing rapid growth, with packaging paper and paperboard consumption rising at 8.2% in 2023-24. The market, driven by demand from FMCG, textiles, pharmaceuticals, e-commerce, and healthcare sectors, benefits from the ban on single-use plastics. Overall paper demand in India grows at 6-7% annually.
India's services PMI surges to five-month peak in August on resilient demand, easing prices
India's services sector activity reached a five-month high in August, driven by strong domestic demand and easing inflation. The HSBC India Services PMI rose to 60.9 from 60.3 in July. Despite a decline in international demand growth, firms remain optimistic about future growth, with cost pressures rising at a slower pace.
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World Bank ups India growth forecast to 7% amid global turbulence
The World Bank has raised India's growth forecast for FY25 to 7%, driven by a recovery in agriculture, private consumption, and rural demand. Despite global challenges, India's economy remains robust. The forecast aligns with recent upgrades by the IMF and ADB, with private investment expected to pick up over the medium term.
Indians see uncertainty ahead despite strong growth: Survey
A survey by Aditya Birla Sun Life Insurance reveals that despite India's economic growth, salaried Indians face high uncertainty. Economic concerns like job loss and technological advancements such as AI are top worries. The survey highlights the need for substantial preparedness among the traditionally stable middle-class population.
India needs faster growth for a decade to meet goals, says RBI deputy governor Michael Patra
India might reach developed country status by 2047 if it achieves rapid economic growth for the next decade, Patra said. The goal requires achieving an 8% growth rate annually and addressing infrastructure and financing gaps. The private sector and increased savings are vital for this transformation.
World Bank raises India's FY25 growth forecast to 7%
The World Bank has increased India's growth forecast for FY25 to 7%, previously set at 6.6%. Despite a slowdown in Q1FY25 caused by reduced government spending, the economy is expected to remain strong. The RBI, Goldman Sachs, and J.P. Morgan have different growth projections, highlighting varied economic expectations globally.
ET World Leaders Forum: Cautiously optimistic on global economy, says Rich Lesser, Global Chair, BCG
Rich Lesser, global chair of Boston Consulting Group, expresses confidence in the economic prospects of India and the US. BCG has seen significant growth in India and expects continued success. The US economy is also expected to remain strong regardless of the upcoming presidential election. Lesser highlights the resilience of these economies and the potential for AI and technology advancements.
CEA V Anantha Nageswaran cautions against fin mkts swaying policy, macro outcomes
Chief economic adviser V Anantha Nageswaran warned against letting financial market expectations overly influence India's policy and macroeconomic decisions. He highlighted the potential risks of financialisation, referring to excessive market dominance, and emphasized the need for a balanced approach to sustain growth and avoid pitfalls seen in developed nations.
