After hitting a high of 8.2% in June 18 quarter (Q1’FY19), GDP growth has slowed to 7.1% in Sept’18 quarter (Q2’19) as per the data released by MOSPI today. GVA growth rate is also in the same line at 6.9% against 8.0% in Q1. Even though the rate has moderated over previous quarter, it is fourth quarter of 7%+ growth and gives sense of stability to the economy after going through the adjustments due to demonetization and GST. However, issues like sharp rise in crude price rise or disturbance in the financial market may keep the growth rate under check in the current quarter. In terms of absolute value, GDP at constant price is Rs 34 lakh crore and Rs 45.5 lakh crore at current prices. Continue reading GDP, Sept 18 – Analyzing the Performance
Government’s budget preparation seems to have begun with media starting to debate whether it will be a full or an interim budget as is the norm in an election year. Whatever may be the case, among the items which face considerable attention is outgo on subsidies, projected at Rs 2.9 lakh crore for the current … Continue reading Government Subsidy – An Overview
Derivatives market in India has grown in leaps and bounds after being introduced in the year 2000. Total turnover has reached a level of Rs 165 lakh crore (notional value) in FY18 from just about Rs 1 lakh crore in FY02, the first full year after it was introduced. The turnover has increased over four … Continue reading Derivatives Market in India – An Overview (Part I)
The cabinet approval to begin filling of the third strategic petroleum reserves is an important milestone in building the petroleum inventory within the country. The inventory buildup carries huge significance, especially for oil importing countries like India, as it would help meet supply needs in case of any disruption. Here is a look at the … Continue reading India’s Strategic Petroleum Reserves
Nuclear power in India still appears to be moving at snail’s pace despite commissioning the first plant way back in 1969. Nuclear power remains constrained due to huge negative perception related to its operations, long gestation period and until about a decade ago, due to variety of international restrictions. However, it provides huge advantages particularly … Continue reading Nuclear Power – Tapping the Potential
IDBI Bank, which reported its quarterly results last week, continues to remain in deep NPA mess. With provisions of about Rs 10,000 crore towards NPA during first half of this financial year, its total provisions have gone up to Rs 33,000 crore covering about 68% of expected loss, up from 54% a few quarters back … Continue reading IDBI Bank – NPAs, Provisioning and the Rest…
Hindalco Industries registered consolidated revenue of Rs 1.16 lakh crore in FY18, almost the same as L&T and Tata Steel. However, company doesn’t have as much visibility as the other two, partially due to lower profitability of the business. Its net profit for the year was about Rs 6,000 crore against as high as Rs … Continue reading Corporate Analysis – Hindalco Industries
As per the Global Financial Stability Report released by IMF (International Monetary Fund) last month, global economy continues to maintain growth momentum. This has been aided by stronger banks, substantial improvement in regulatory standards and curtailment in the activities of so called shadow banks. However, there could be a reversal in trend as reflected in … Continue reading Status of Global Economy, Ten Years on – IMF Report
While India has improved its performance substantially in the ease of doing business over last two years, its performance in “Contracts enforcement” is still quite concerning. As per the report, average time taken for resolution of a legal dispute is more than 4 years. This also involves expenses of almost 30% of amount under dispute, … Continue reading Indian Judicial System – Status & Reforms for "Contracts Enforcement"
Reports from two global institutions recently give greater credibility to the government’s effort to simplify business process. One from the World Bank showing sharp improvement in ease of doing business rank from 100 to 77 and second, jump in World Economic Forum‘s competitiveness index to 58th, up five places. More importantly, World Bank report is … Continue reading Ease of Doing Business – The Great Indian Leap..!