At the beginning of September, the Indian rupee hit a series of record lows. Having appeared to be immune to global economic crises in the past, India was suddenly at the forefront of the troubles in emerging markets. And all eyes were on its external balances.
Taking the wheel at the central bank, the new governor, Raghuram Rajan (pictured), announced a new swap window to coax dollars into India. When the window closed at the end of November it had brought $34bn into the country in just three months – far more than most people expected. Continue reading »
“A bright and fresh fruit bouquet of citrus blossom, green apple with hints of tropical fruits and vanilla.”
It’s the sort of “tasting note” you would expect of wines from the luxury French brand Moët Hennessy – except that this one is made in India.
This week, the label launched its first products made specifically for the Indian market: its Chandon Brut and Chandon Brut Rosé sparkling wines. Continue reading »
India is a country where GDP per capita is less than $1,500 a year, and where people have big aspirations and are often overqualified for their jobs.
So it comes as a surprise to read new research showing that Indians take more satisfaction in their work than their peers in the US, the UK, France and Germany. Continue reading »
India’s central bank governor Raghuram Rajan has vowed a ‘dramatic remaking’ of the banking sector. FT editor Lionel Barber discusses with Jonathan Wheatley, deputy emerging markets editor, whether Rajan can deliver, India’s forthcoming elections and Sachin Tendulkar’s 200th test.
The Reserve Bank of India is providing Rs50bn ($800m) to small enterprises for refinancing, a boost to businesses that are suffering from tight liquidity as Asia’s third largest economy slows. Continue reading »
Shares in Apollo Tyres opened up more than 3 per cent on Tuesday at Rs76.90, adding to a gain of 4 per cent on Monday.
The stock is enjoying a nice run this week, having lost some 15 per cent since June 12, when the Indian group announced plans to acquire Cooper Tire and Rubber in a $2.5bn deal set to be the largest takeover of a US group for India. Continue reading »
There are several conventional measures of living standards, such as average income, but they often mask great inequalities.
So it’s good to see Crisil, the Indian unit of Standard & Poor’s, using census data on ownership of consumer durables – such as televisions, computers, phones and a car, jeep or two-wheeler – to assess prosperity and inequality across the country in an index. Continue reading »
For the last week, the streets of Mumbai have been lit up – by brightly coloured posters loudly announcing Diwali sales and by spectacular fireworks that left the dogs howling. It seemed like typical festival fever.
But if celebrations this Diwali are anything to go by, India is developing fast: two reports from the Associated Chambers of Commerce and Industry of India (Assocham) show that online shopping grew, and sales of firecrackers fell this Diwali. 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 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 »
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 »
After a run of bad news for the Indian economy over the summer when the world’s investors started to turn their back on emerging markets and the rupee went into freefall, the world’s second largest country is showing signs of having weathered the storm. The FT’s James Crabtree looks at why some parts of the corporate sector appear to be doing well in spite of the country’s economic problems.
As expected Raghuram Rajan, the new governor of the Reserve Bank of India, has confirmed beyond all doubt that he’s all hawk.
The central bank raised the policy repo rate 25 basis points on Tuesday to 7.75 per cent. At the same time, it cut the marginal standing facility (MSF) – the rate at which banks borrow funds overnight from the RBI – by 25bp to 8.75 per cent.
Continue reading »
Raghuram “Rockstar” Rajan, the new governor of the Reserve Bank of India, proved he meant business last month when he surprised markets and raised the repo rate by 25 basis points to 7.5 per cent.
His next policy decision comes on Tuesday and many analysts are expecting another 25bp hike. So what are the signs he’ll be looking for? Continue reading »
The World Bank slashed its growth forecast for India on Thursday, predicting GDP for the current fiscal year at 4.7 per cent.
Back in April, the Bank was predicting economic growth of 6.1 per cent in the current fiscal year – but a lot has happened since April. Continue reading »