When the Reserve Bank of India put out its latest statement on the nation’s current account deficit on Monday it looked like good news.
The gap narrowed to $5.2bn, or 1.2 per cent of GDP, in the three months to September from $21.0bn, or 5 per cent of GDP, in the same period a year earlier. But are these numbers simply a mirage? Continue reading »
It’s official. India believes a government led by Narendra Modi, the contentious prime ministerial candidate for the opposition Bharatiya Janata Party, would be a blessing for the economy. At least, so says Goldman Sachs.
In a note to clients on Tuesday, analysts at Goldman increased their target for the Nifty index at the end of 2014 to 6,900 points. The benchmark index is currently trading around 6,240 points.
Earlier this year, Goldman had a cautious view on India. But the Nifty has gained 30 per cent since the end of August and the bank has good reason to raise its investment outlook. Continue reading »
In the fourth part of our series on gold in India, beyondbrics asks why sales of the precious metal were so subdued before this month’s Diwali festival – usually a peak season.
See also part one, jewellers in a desperate spot, part two, gold loans on the up, part three, the story in charts, and from FT Analysis, India: Part of the fabric. Continue reading »
In the third part of the beyondbrics series on India and gold, we tell the story of the country’s obsession in seven charts.
[See also the FT analysis: India: Part of the fabric; beyondbrics series part 1, the jewellers in a desperate spot; and part 2, the growth in gold loans.] Continue reading »
In the second part of a beyondbrics series on India and gold, we look at the surge in gold loans – a market that highlights the country’s obession with the metal, and serves to reinforce demand.
See part one: India’s jewellers in a desperate spot. Coming on Friday: India and gold in charts. Continue reading »
What can India do about its gold habit? In the first part of a beyondbrics series, to accompany the FT’s Analysis of India and gold, we look at the impact of recent measures to curb the country’s gold appetite on the jewellery industry. Continue reading »
What do you do if you are an emerging market country that is suffering from a widening current account deficit, has a battered currency and is pretty much being shunned by foreign investors at the moment?
Well if you are India, you can try joining an international benchmark index. Continue reading »
Two things have shown India in a bad light recently: the brutal rape of a 23 year-old student in New Delhi in December, and an economic downturn which pushed the rupee into freefall. Both have affected visitor numbers – India is seen as a more dangerous and cheaper tourist destination now.
In attempt to boost the tourism industry, India is looking to change visa rules and make it easier to enter the country. Will it have any effect? Continue reading »
By Saurabh Mukherjea and Ritika Mankar Mukherjee
It is hard to read a newspaper these days, whether in India or abroad, without running into opinion pieces criticising the performance of the Indian economy. Whilst the critics differ in their targets – some focus on the incumbent administration’s incompetence, others on India’s institutional shortcomings such as endemic corruption – as the tide of cheap American money recedes, India’s shortcomings are clear for all to see. Not only is the currency battered, the economy too will slide towards low single digit growth.
We disagree not so much with India’s economic predicament – the weak economic growth and the sliding rupee are matters of fact – but with the portrayal of a cyclical downturn as a structural crisis. This, to our mind, is one of the three myths regarding India that are being perpetuated at present. Continue reading »
Are Indian policy makers delivering on their promises? Here’s one to watch.
India’s finance minister Palaniappan Chidambaram has vowed that the country’s unsustainable current account deficit will be brought down this year. So what do the latest figures, released by the central bank after markets closed on Monday, show? Continue reading »
India’s mandarins aren’t quite done tinkering with the gold market.
This week, the government hiked customs duty on gold and jewellery from 10 per cent to 15 per cent, a move aimed both at reducing imports and protecting domestic goldsmiths ahead of the festival season. Continue reading »
After hitting a tailspin in August, the Indian currency has been recovering over the past week.
Is this a temporary blip on a long road of depreciation, or is this crisis over? Continue reading »
By Puran Singh and Nupur Pavan Bang of the Indian School of Business
“Getting married this year would be very costly for me. With gold prices at an all-time high, jewellery shopping will literally wipe out all my savings. My parents will insist that I buy at least 50 grammes of gold jewellery for my future wife. It does not make sense right now at such high prices.” So says a friend, bracing himself to tell his fiancée their wedding must be postponed. Continue reading »
Wednesday is Duvvuri Subbarao’s last day as governor of the Reserve Bank of India before Raghuram Rajan, former economic adviser to the government, takes the wheel.
And in the run up to his departure the outgoing governor has cooked up quite a storm. Continue reading »
The Reserve Bank of India, the country’s central bank, has been busy this month with all kinds of efforts to tighten liquidity and make currency speculation more expensive.
But the big ticket announcement comes on Tuesday when it sets its repo rate – the rate at which banks borrow from the RBI – and its cash reserve ratio – the proportion of deposits that banks must have in hand as cash. Continue reading »