Economy Financial News

Subscribe to enjoy similar stories. When hurricanes hit, they send air pressure sharply lower. They can affect the barometers we use to read the economy, too.

Subscribe to enjoy similar stories. Although the US dollar remains the world’s dominant currency, many countries are diversifying their currency reserves to reduce over-reliance on it, mitigate risks associated with changes in US monetary policy and lessen the impact of global economic shocks. Reduced reliance on the dollar in financial transactions is clear in the decline of dollar-denominated deposits and loans, and the dollar’s share in global foreign exchange reserves.

Economic Survey by the Ministry of Finance. However, global geopolitical tensions, particularly escalating conflicts and growing geo-economic fragmentation, could pose significant risks to this outlook, the FinMin said on Monday. The potential for disruptions in global trade and finance stemming from unpredictable trade policies of major economies may affect India’s external sector, despite its current stability. «Risks stem from global factors such as geopolitical conflicts, rising geo-economic fragmentation, uncertainties about the trade policies of major economies and consequent financial market reactions,» said the report, adding, «Their spillover effects on India could cause negative wealth effects, impacting household sentiments and altering spending intentions on durable goods.»

V Vaidyanathan, MD & CEO, IDFC First Bank, says the microfinance sector's delinquency has been going up and other than IDFC First, other banks have also been affected. The good thing is IDFC’s delinquency as compared to the rest of the industry, is much less. SMA or pre-NPA is only 2.5% as compared to 3.5% to 4% or maybe 2.7% to 4% for similar banks. Also, now 50% of the portfolio is insured and it will reach 75% by March ‘25. Vaidyanathan also says that they have taken a big write-off on an infrastructure loan candidate who used to collect tolls from cars entering and leaving Mumbai. As the government has announced that no toll will be levied, this company was in dire straits. From next quarter, the name of this account will not be there anymore. Good comes with the bad and for the quarter gone by, there is a lot of good, but there is a lot of bad also. What shall we start with? V Vaidyanathan: We should start with the bad because people will want to hear what really happened this quarter and we need to explain.

Economic Survey for September and said that inflation expectations in India are softening, indicating reduced inflationary concerns. The report said that both household and business surveys by the Reserve Bank of India (RBI) and the Indian Institute of Management, Ahmedabad (IIM-A) suggest a stable demand environment, despite the impact of price fluctuations in key food items on headline inflation. «The headline inflation rate, influenced as it is by a few food items, may not be the most accurate gauge of underlying demand,» the government said.

Subscribe to enjoy similar stories. Recently, the government marked the occasion of one decade of ‘Make in India.’ It was a trigger for many commentators to bring out their knives (sorry, keyboards) and point out that India’s manufacturing gross value added (GVA) as a share of total GVA has not risen, etc, contending that the programme has failed. Some find a way to see silver linings around clouds and some are adept at the opposite.

h debt and escalating wars topped the official agenda at the International Monetary Fund and World Bank annual meetings, but finance leaders spent much of their energy worrying about the potential impacts of a return of Donald Trump to power in November's U.S. presidential election. Republican candidate Trump's gains in recent polls to erase much of the early advantage of his Democratic opponent, Vice President Kamala Harris, was part of nearly every conversation among finance officials, central bankers and civil society groups attending the meetings in Washington this past week. Among concerns were Trump's potential to upend the global finance system with massive tariff increases, trillions of dollars more in debt issuance and a reversal of work to fight climate change in favor of more fossil fuel energy production.

The Conference Board publishes its consumer confidence index for October on Tuesday

Shigeru Ishiba's coalition lost its parliamentary majority in a drubbing in Sunday's election, raising uncertainty over the path for policy and the economy. Ishiba's Liberal Democratic Party (LDP), which has ruled Japan for almost all of its post-war history, and junior coalition partner Komeito took 215 seats in the lower house of parliament — well short of the 233 needed for a majority — public broadcaster NHK reported. The LDP previously held 247 seats and Komeito held 32.

Brent crude futures were 4.2% lower and traded as cheaply as $67.80 a barrel after Israel's response to an Iranian missile attack focused, so far, on missile factories and other sites near Tehran and not on disrupting energy supplies. In Japan, the LDP which has ruled for most of the post-war years and junior coalition partner Komeito won 215 lower-house seats at Sunday's election, public broadcaster NHK reported. This falls well short of the 233 needed for a majority and the yen was squeezed since investors figured any government that emerges is likely to make a dovish shift in economic policies.

Reserve Bank of India’s upbeat growth estimates for the world’s fastest-growing major economy is causing both confusion and concern among economists. The central bank has stuck to its forecast that India’s economy will expand 7.2% in the year ending March 2025 despite recent evidence showing activity is starting to taper off. The RBI’s outlook is far more optimistic than the 6.5%-7% growth projected by Prime Minister Narendra Modi’s government. Investment banks like Goldman Sachs Corp. have already downgraded growth projections to as low as 6.5%. The RBI’s bullishness is underpinned by its view that rural spending is improving and private investment is picking up. Economists, though, point to sluggish urban consumption and weakening exports as a worry. If those warning signals aren’t heeded in time, the RBI runs the risk of keeping monetary policy too tight, undermining growth further, they say.

Subscribe to enjoy similar stories. Last week, Yann LeCun, one of the godfathers of artificial intelligence (AI), visited India. Alongside, Nvidia chief Jensen Huang made his annual visit.

Subscribe to enjoy similar stories. A top government panel is likely to approve a ₹4,000-crore production linked incentive (PLI) scheme next month to boost the domestic production of specialty steel and curb imports, two persons in the know of the development said.

Subscribe to enjoy similar stories. No firm is an island. All strike contracts and compete with others.

Subscribe to enjoy similar stories. Creating meaningful employment opportunities for those who seek paid work among India’s nearly 900 million working-age individuals is a central concern for policymakers. Along with the number of jobs, the job quality and distribution across the country are critical for ensuring widespread economic prosperity for most Indians.

Maharashtra assembly polls, External Affairs Minister S Jaishankar on Sunday said the state needs a government which is on the same page as the Centre. Addressing a press conference in Mumbai, Jaishankar also said India is a leader in fighting terrorism and has zero tolerance for it. «Maharashtra is a leading state in industry technology and infrastructure. Viksit Maharashtra is important for achieving the goal of Viksit Bharat,» the BJP MP said. «Maharashtra needs a government which is on the same page as the Centre,» he said.

GST) in India was a «classical example of cooperative federalism,» Chief Justice of India D Y Chandrachud said here on Saturday. The courts have, over the last few decades, evolved a robust framework on federalism to ensure that the states' rights are protected, he said, speaking on 'Understanding Federalism and Its Potential" at the inaugural annual lecture series organized by the Marathi daily 'Loksatta'. Federalism, for Indians, is not a «monolithic concept» but has multiple facets, the CJI said.

Subscribe to enjoy similar stories. Tesla has had a special relationship with China allowing it to do things in the country that have been the envy of other U.S. automakers.

Subscribe to enjoy similar stories. Investors have been keenly awaiting ICICI Bank's September quarter results to analyse the impact of higher deposit rates on the bank's key operational parameters, including net interest margin (NIM), loan growth, and non-performing assets. They have been rather bullish on the bank going into the earnings season.

Taiwan is making a longshot push to join the International Monetary Fund

India’s ambition to double its economy to $7 trillion by 2030 hinges on a broad strategy that includes reforms, infrastructure development, investment in human capital, a focus on innovation, and consistent investment in key growth sectors such as manufacturing, exports, and agriculture. Achieving this target requires collaboration between government, civil society, and the private sector. In this background, Public Affairs Forum of India ( PAFI ) 11th Annual Forum was convened last month in New Delhi with three specific aims: to define required policies, understand crucial partnerships, and identify immediate priorities. The sessions pointed to multiple learnings for advancing India’s ambition for sustainable and inclusive growth. Here are 11 key points that emerged at the Forum.